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Configuring Drop Shipping Within SAP

In order to understand the configuration behind an SAP-related drop shipment, we need to first understand the relevance of this concept in the backdrop of today’s digitally connected world. Drop shipping relates to a case where the order placed by a customer is transferred to a third party for fulfillment. Thus, the company which received the order only executes order confirmation and invoicing aspects of the transaction. The other steps associated with procurement, warehouse management and logistics execution is done by the third-party which then raises an invoice for its services. Drop shipping is a natural fit for companies dealing in ecommerce or planning to generate sales via the web.

As you would have probably guessed by now, drop shipment scenario saves the organization from production, inventory management, logistics and handling aspects. The product is not only procured or manufactured by a third-party but also shipped directly to the customer as well. We will discuss the business benefits of drop shipping in the subsequent section of the article. Let’s look at how drop shipping can be configured within SAP.

Configuring Drop Shipping Within SAP:

Using the below steps, you can configure the drop shipping within SAP. The steps have relevant screenshots along with them. The steps have been listed in a logical sequence for better understanding.

Read the full step-by-step process here : Configuring Drop Shipping Within SAP - All You Need To Know (

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