Section: Implementation and Operations

Drop shipping is a fulfillment method where retailers do not keep products in stock but instead transfer customer orders and shipment details directly to the supplier or manufacturer, who then ships the goods directly to the customer. Here's how it works step-by-step:
* Customer Order: A customer places an order with the retailer.
* Order Transfer: The retailer forwards the order and shipping details to the supplier or manufacturer.
* Supplier Fulfillment: The supplier or manufacturer prepares the order and ships it directly to the customer.
* Inventory Management: The retailer does not handle or store inventory, reducing warehousing and logistics costs.
* Benefits: This method can reduce inventory holding costs, minimize handling time, and improve cash flow for the retailer, as they do not pay for inventory until it is sold.
References
* Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.
* Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2013). Supply Chain Logistics Management.