Order and Fulfillment Methods
Inventory-based Businesses have many ways of order and fulfillment methods at their disposal:
Some of these methods are:
- Direct Ship
- Drop Ship
The Versa Cloud ERP system supports Businesses that need one or more of these methods of fulfilling Orders from their suppliers and businesses that offer these methods of Order Fulfilment to their customers.
The sections that follow discuss these methods of Order Fulfilment in some detail including related topics around different methods of Customer Order taking, Customer and Supplier Order Payment as well as Fulfillment by a 3PL.
Customer Order may originate in various places, including via EDI, API, Marketplaces, eCommerce Shopping Carts, Versa’s built-in B2B Portal, or via direct entry as a Sales Order into Versa. Customer Orders created outside become Sales Orders in Versa. Depending on the workflow, these Sales Orders may be in different states when they arrive in Versa.
For example, an order from a Shopify Shopping Cart may be received as a Versa Sales Order which is PAID FOR but UNSHIPPED with the Fulfillment process to be completed in Versa. Fulfillment in Versa may then occur using one of the many methods discussed in the sections of this document that follow. Or the Order from the Shopify Shopping Cart may be received as a Versa Sales Order that is PAID FOR and SHIPPED with the Fulfillment process already completed using the Shopify capabilities, or those of a Shipping App integrated with Shopify or via a 3PL that pulls new Customer Orders from Shopify and fulfills them.
Third-Party Logistics (3PL)
Businesses that use the Versa Cloud ERP system can leverage it’s built-in Logistics capabilities it to Pick, Pack, and Ship Customer Orders from Stock held in one or more of their own warehouses. Or Customer Orders can be sent to a 3PL from Versa for Fulfillment. Optionally the 3PL may receive these Customer Orders from an Order taking source outside Versa,
as previously described.
The most obvious way for a Business to fulfill a Customer Order is to directly ship Ordered goods to the Customer from available Stock in its own warehouse or from a #PL where the Stock is stored. Retailers and distribution companies do this by Purchasing the Products they resell ahead of time and Stocking them so they can be shipped from Stock when a Customer Order is received. Optionally a Business may Manufacture Products against some Forecast of Sales, Stock these manufactured Products, then Ship these Products from Stock when a Customer Orders them.
This is what a Make-to-Stock manufacturing Business does a Business may only manufacture the Product when a Customer Orders them and then ship the manufactured Product to the Customer. This is what a Make-to-Order manufacturing Business does.
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