Difference Bewteen Drop Ship and Back to Back Order

Difference Bewteen Drop Ship and Back to Back Order


Both the Process are quite similar . In both cases, your sales order line creates a requisition line that becomes a PO sent to your supplier.

In a drop shipment, however, you instruct your supplier to send the item or configured item directly to your customer. The items never physically pass through your warehouse, and therefore you do not

1. pick, 
2. pack or 
3. ship them yourselves. 

In the back-to-back scenario, you instruct your supplier to send you the goods, and then you

1. pick, 
2. pack or 
3. ship them on to your customer