Supplier Management Process- Dropship with reliable support

Over the time, drop shipping has become a much implemented online retail idea across the globe which enables the drop shipper to own a retail business without worrying about the inventory and logistics. Isn’t that pretty exciting and convenient?

But, a dropshipper can only add value to his business reputation through the agency of trustworthy wholesalers and suppliers and for that there is a need for a clear supplier management framework.

What is the Supplier Management Process?
It refers to the procedure that deals with practices of transit of products from the supplier/wholesaler/vendor to the consumer. As a dropshipper, order fulfillment of customers will determine the value of your business. The most important aspect is the management part, which focuses on smooth functioning of the supply chain so that orders are completed on time and customers come back again.

Let’s see how to work smoothly with suppliers.
Supplier Relationship Management Strategies
Initially, create relationships with more than one supplier. Research, contact and check for valuable suppliers. When you find suppliers willing to work with you, talk to them and ask a  number of important questions that will clearly state the expectations of your business  relationship with them. Ask questions like:

How will they send the product data?
Where will you pass on the orders from customers? How do they wish to receive them like via email, website, etc? 

How will you get inventory updates?
How will customer service tracking, returns, exchanges, cancellations and other queries be handled?
Finalise the wholesale prices.

After you get your answers, keep a record of this data from all suppliers. Have formal agreements when you decide on the suppliers.

Differentiate products by adding Stock Keeping Unit Codes for multiple suppliers. 

Alot your own SKU codes to the products against the item numbers provided by different suppliers. This will help you to keep a track of the inventories and you can identify the product when ordered. After this, analyse, whether this simplifies your working with the supplier.

If you don’t have an organized record of your SKU codes and product inventory, you’ll face a hard time to find the product information and keep a track of it. 

Order Fulfilment Process

As a customer places an order at your online retail,
Check the SKU Code of the ordered product and make sure it is available in stock.
Retrieve the product name and other supplier data that you need to pass on the order to the particular supplier.
Check for the supplier contract and follow the instructions to send the order to the supplier.

Management of delivery from different suppliers
Some customers might place an order for more than one item in a single transaction but from separate suppliers. In such a case, it is uncertain that all the products will reach the customer together on the same day and at the same time.

Here, you can take help of a fulfilment company to consolidate the orders and deliver them as one unit to the customer. Or, you can notify the customer of separate deliveries for the products.

I hope you will find these points helpful in maintaining an effective supplier management process. If you are looking forward to giving shape to your dropshipping business idea, allow Shop1 to assist you with setting up your online storefront and also you can get information about reliable suppliers for your support.

Good teamwork is the key to success in every business.

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