third party dropshipment process and system setup

[Former Member]

Hi gentlemen,

I have a few question to check with you.

1 - What is the difference between Third Party Shipment, and Third Party Drop Shipment in term of process?

2 - What is the system setup requirement for Third Party Drop shipment (I know TAS is require for 3rd party, but what about 3rd party drop shipment)?

thanks

tuff

[ajitsingh6 · Accepted solution]

Dear Tuffy ,

Normally customer places the order on the distributor and then the distributor will place the order on the vendor or

the manufacturer. Once the material is shipped from the vendor it reaches the distributor and then the distributor

bills the material to the customer.

Now incase the material is directly billed by the vendor or the manufacturer to the customer then we call this

transaction as drop shipment. (NO INVOLVEMENT OF THE DISTRIBUTOR)

Regards

AJIT K SINGH

[Former Member]

Hi Tuffy,

I did'nt quite get the context of what you mean by third party in this case. Is it a third party delivery which uses TAS item cat on the sales order.

Or we have scenarios where order is done by for example my company but there is an external ware house which receives my dleivery number probably through EDI who does the shipment and confirms back to SAP to trigger PGI.

Drop shipment in general business terms is used reduce the cost of inventory stocking. Like I just take orders and book it to a company, they do the shipment to the address I mention ( this goes as part of ship to party address ). Since the company does not from who all I can book orders they just maintain a drop ship customer.

You might find the below blog useful:

[One Time Ship To Party|/people/sadhu.kishore2/blog/2008/12/12/working-with-one-time-ship-to-party]

Regards

Sadhu Kishore