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Logistics & Fulfilment

Do you understand drop shipping?

Drop shipping is the term used when retailers sell an item online (or sometimes in store) that they don’t keep in stock. When the sale occurs information is transmitted to a wholesaler or remote warehouse where the item is picked, packed and shipped. On receipt of the shipped goods, the customer is often oblivious that the sender is a third party.

Graham Meyerowitz of Nortech Systems introduces the concept of drop shipping.


A drop ship system was required for connecting multiple jewellers to the online retailer http://www.crazysales.com.au/
The aim of the project was to connect multiple jewellery suppliers to an Online Retailer so that information could flow easily bwteeen these trading companies to ensure:

1) Product and inventory information is updated daily
2) Orders get to pickers and packers in real time
3) Shipment information is sent back to the retailer and customer in real time
4) Courier and Freight tracking is directly linked in
5) Customer service issues are communicated
6) Payments are reconciled with supplier invoices.

The solution was to use the GoFar Drop Ship Gateway: www.shipto.com.au, as the link between the suppliers (Jewellers) and the Online Retailer .
The Shipto gateway is an internet based gateway that connects suppliers and wholesalers, to Online Retailers using EDI file transfer. The advantage of EDI file transfer is that wholesalers can use conventional scan pack systems to: Send Product inventory updates, receive Picking Orders, send Packing and Shipment Notices, and print necessary shipment labels. This has many more benefits than the alternative which is: To use the Online retailers website to view orders and manage products.

Shipto connects directly to wholesalers inventory, and thus provides order tracking and product visibility.

The solution makes it easy to scale and ensures:

  • Online retailers can easily add multiple suppliers to their suply chain network, and
  • Suppliers can easily add multiple Online retailers to their supply chain network.

The GoFar EDI scan pack system, is an easy to use interface in the suppliers warehouse, including features such as :
1) Sending inventory updates to online retailer website
2) Receiving daily picking orders
3) Packing and printing labels for courier and despatch notes. For Eparcel, TNT, AAE and others.
4) Generating Con Note numbers, and Sending Consignment notices to couriers like eParcel, TNT, toll, AAE and others.
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