Drop shipment is a process where the products are shipped from an organization’s supplier directly to the customer without physically receiving the materials into the organization facility.
- Your customer places and order with you
- The oracle Fusion system automatically places an order with your supplier
- Your supplier ships directly to customer
- A sales order is created and scheduled on DOO workbench.
- A fulfillment line is sent for promising.
- Order promising engine determines drop-ship as the fulfillment option based on sourcing rules and availability, buy from sourcing rules that are assigned to a customer or assigned to a geographical region are interpreted as drop-ship sourcing rules.
- DOO creates the requisite drop-ship purchase order with the PO having drop ship customer and drop ship customer site populated.
- Drop Ship PO Schedule Number is populated on the fulfillment line which indicates that the purchase order is reserved to the fulfillment line under consideration.
- Purchase order is sent to Supplier for fulfillment.
- Fulfillment Line status is Awaiting Shipping.
- Supplier ships goods against the purchase order and creates advance shipment notice (ASN).
- Receiving records a logical receipt for ASN and notifies Order Management.
- Order Management gets details about the shipment from Receiving.
- Fulfillment Line status is Shipped.
- Order Management sends request to Receivables to bill the customer.
- Fulfillment Line status is Awaiting Billing.
- Receivables creates an invoice and notifies Order Management.
- Fulfillment Line status is Billed.
- Order Management closes the fulfillment line once customer is billed.
- Manage Items
Item must be purchasable in requisition organization and list price must be defined if there is no Blanket agreement.
- Manage Sourcing Rules
Sourcing Rule must be type global and mention the supplier details withing Buy From source type.
- Manage Drop Ship Financial Flows
Controls communication of ownership change by specifying Supplier ownership change event and associate Selling BU with Receiving trade organization.
- Item Validation Organization for Drop Ship
For any source system which supports drop shipments, a drop ship validation organization must be specified. Only one drop ship validation organization can be specified for each source system.
Drop ship validation organization must be the item master for a source system
- Mange Order Management Parameters
You need to define preparer/buyer name for procurement activities. Parameter required for sending purchase request to Procurement..
- Manage Suppliers and Supplier Sites
Define your requisitioning business unit at supplier and specify the purchasing business function this supplier site provides to client business unit.
- Manage Agreements
Define Blanket Purchase agreement and enable to automate purchase order creation from requisition and submission for approval.
- Once the Drop Ship setup tasks are completed you have to refresh the GOP data store by running below processes sequentially:
- Run ESS job the “Collect Planning Data” to collect data for scheduling.
- Run the ESS job “Refresh and Start the Order Promising Server “
Drop Ship execution
Create a sales order in Order management using “Create Order”. Navigate to Fulfillment Lines and schedule the sales order. Based on Order promising engine’s recommendations, Order Management will create a drop ship purchase order.