Dropshipping
What is dropshipping?
Dropshipping is a logistics model in which a seller does not physically store products in its warehouse. Instead, orders placed by customers are directly transferred to the supplier or manufacturer, which ships the goods directly to the end customer. The vendor thus acts as an intermediary, which eliminates the need to hold inventory and handle shipping, but comes with less control over the order fulfillment process. This model is particularly popular in the e-commerce industry.
Key challenges
- Lack of control over inventory- The vendor has no direct control over product availability, which can lead to problems with order fulfillment.
- Shipping delays- Coordination between vendor and supplier is sometimes difficult, which can cause delays in delivery.
- No personalization of shipments- In traditional dropshipping, shipments are sent directly by suppliers, which often limits the ability to add branding or promotional elements.
- Managing multiple suppliers- When selling multiple products from different sources, coordinating suppliers becomes a challenge, increasing the risk of errors and delays.
Intralog solutions for dropshipping
- Integrated order management systems (OMS)- Full control over procurement, monitoring processes from purchase to delivery, even with dispersed suppliers.
- Cross-docking automation- Quick transfer of goods from suppliers to transport without storage, which speeds up order processing.
- Integration of dropshipping systems with WMS- Precise monitoring of inventory at suppliers, which reduces the risk of shortages of goods.
- Customization options and VAS(value added service) - Automatically add samples, promotional materials to shipments to maintain quality service and build brand awareness.
Benefits for companies using dropshipping in cooperation with Intralog
- Increased control over processes- full insight into supplier inventory, which increases operational efficiency.
- Reduce delivery time- Cross-docking automation speeds up deliveries to end customers.
- Personalization of shipments- The ability to add samples and promotional materials, which increases the value of orders.
- Cost optimization- Process automation reduces operating costs, increasing margins in the dropshipping model.
