Automate your Drop Ship Process

By Logicbroker | November 5, 2021

Drop shipping is currently the most popular supply chain management practice. Retailers can offer their customers an endless aisle of products, while quickly responding to shifts in consumer demands without adding the extra costs associated with holding inventory. However, there are some risks associated with drop shipping.  

Overselling can occur if the vendor is sold out of a product and neglects to update the retailer. This can lead to decreased consumer satisfaction, potential loss of a sale, and even loss of a customer. Another problem with drop shipping is if the process is not automated, you are adding costs and potential headaches. Unlocking the true potential of drop shipping begins with the right partner for automation.  

A manual drop ship process involves the sending of a customer order via email, fax, or phone to a wholesaler, manufacturer, or distributor.  The order is then picked, packed, and shipped directly to the customer. The third-party vendor will also send an invoice and tracking information to the retailer. The retailer then sends an email with tracking information to the customer. While this method is manageable, it leaves the door open for errors and lost time. 

Automating your drop ship process is the perfect solution to eliminate any drop ship risks. Choosing to use a modern eCommerce solutions provider and integration hub, such as Logicbroker, will automate your drop ship process.  

Utilizing advanced, cloud-based APIs that connect directly with every form of legacy order management systems, retailers can integrate directly with trading partners, while order, shipment, invoice, and other business transactions flow effortlessly between systems. Because modern APIs eliminate the need for tedious manual data entry, the risk of human errors from rekeying is essentially eliminated. A solution like Logicbroker enables API for EDI communication, wrapping legacy tech in a clean, modern, and fast interface. For example, receiving an EDI 846 document through an API eliminates the risk of overselling as the document replaces paper inventory updates. By eliminating confusion, retailers and suppliers can share a better business relationship.  

Automating your drop ship process allows orders to be processed quickly, which leads to a happy customer. The automation of the drop ship process also involves integrating your internal systems. Utilizing an advanced API-based solution can connect vendors and retailers with shopping carts (Shopify, Adobe, and Salesforce), ERP systems (Netsuite or SAP), order and inventory management systems, and accounting software (QuickBooks) with ease. When these systems are connected to a community of drop ship suppliers, information flows between each party automatically, eliminating the need for you to manually update and rekey information in each system. The seamless flow of information between these systems saves time and eliminates human error. 

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