There are four steps to the drop shipment fulfilment process.

Each step is dependent on the others for its actions. For example, if the process creates cans, it reduces the cases available, which triggers a stock transfer.

Below we will cover each step in detail.

Every drop shipment process cycle; checks the stock of all parts on the pricelist.

Insufficient stock to supply open sales orders and maintain stock levels triggers further action. The calculation below determines if the current stock level is adequate.

*The part warehouse settings are used, not the part plant settings.

Suppose the item running low on stock is sold as a can.

The process will look for a case that can be converted into the sold can. It does this by looking for a case with a matching can barcode. The match with the highest stock in the same warehouse is used. Now that the process has found source material to create cans from. It will calculate the number of cases required to replenish the can stock.

First, the number of cans required is calculated.

This is then rounded to a whole case.

The rounded required can quantity is used to confirm enough stock to convert whole cases into the required can amount.

A transfer request is created if there is insufficient stock for a matching SKU.

Otherwise, the amount of stock to be converted is stored for the create cans step.

For SKUs sold as cases, a transfer request is created if they are deemed low in stock.

Based on the information calculated during the stock requirements step. The source case SKU stock level will be reduced, and the target can SKU stock level will be increased.

The inventory costs for each can will be calculated and transferred.

Each inventory transaction will be recorded in the system as a quantity adjustment ADJ-INV and the cost transfer will be recorded as a cost adjustment ADJ-CST.

The Rework, not via BoM (INV16) reason code, is applied to inventory and cost adjustments.

As with the create cans step. The create move request action works from the stock requirements calculation. The process will complete a move request if stock is needed in the fulfilment warehouse.

Each move request can be reviewed in Material Request Queue.

All open transfer requests will be sent to the warehouse on a defined day of the week.

All open requests are summed to create a consolidated material movement for each SKU.

After a stock transfer file is sent to the warehouse, each move request is assigned to the Ali-Express transfer employee.

The transfer requests will remain in this state until the warehouse completes a shipment for the SKU that has been sent. The move request is committed at this time, and the stock will move to the fulfilment warehouse.