In NetSuite, Drop Ship and Special Order fulfillments are used to manage unique supply chain workflows where inventory is not stocked but shipped directly from the vendor or ordered on-demand. A Drop Ship is when an item is shipped directly from the vendor to the customer without the company ever handling the inventory. To use drop shipping, mark the item as “Drop Ship” in the item record, and when a sales order is created, NetSuite automatically generates a linked purchase order for the vendor. Once the vendor fulfills the order, you mark the PO as received, and the item is considered fulfilled.
A Special Order, on the other hand, is used when an item is ordered from the vendor and delivered to your warehouse before being shipped to the customer. The item is typically not stocked regularly and is only purchased when ordered by a customer. To set this up, mark the item as “Special Order Item.” NetSuite will then generate a purchase order tied to the sales order, but the goods will be received at your location before customer fulfillment. Both methods allow real-time tracking and linkage between sales and purchase documents, improving order accuracy and customer service.