[jira] Created: (OFBIZ-213) Support for true drop shipping

[Nicolas Malin (Jira)]

Support for true drop shipping
------------------------------

                 Key: OFBIZ-213
                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
             Project: OFBiz (The Open for Business Project)
          Issue Type: New Feature
          Components: order, product
            Reporter: Jacopo Cappellato
         Assigned To: Jacopo Cappellato


Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.

The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.

Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):

**********************************************
Data model changes/seed data changes
**********************************************
1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
2) New seed data for Product.requirementMethodEnumId to list also:
- allow manual drop ship
- auto drop ship on low quantity
- only drop ship (never stock)

**********************************************
Business logic
**********************************************
The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
The supplier will ship directly to the customer.


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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12433380 ]
           
Chris Howe commented on OFBIZ-213:
----------------------------------

"post it to G/L without holding it inventory"

This improvement should not touch G/L.

For the accountants out there, this is interesting (and perhaps worrisome).  The quoted statement is talking about "financial accounting", while the concept of drop shipping is strictly "managerial accounting".  Seperating the two in business logic while merging the two operationally is the challenge of ERP software in regards to process automation.

For financial accounting the terms of shipping determine when product enters and leave your inventory, not physical possession.  In managerial accounting, it's the other way around.  This is why your accountant doesn't manage your warehouse and why your warehouse manager doesn't manage your books.

**The information contained in this post is for informational purposes only and does not constitute tax, legal or accounting advice.**

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12433414 ]
           
Si Chen commented on OFBIZ-213:
-------------------------------

Chris,

If you drop a ship item, you will still need to book it as revenue and accounts receivable, and you will still need to post the cost of goods sold and accounts payable to your vendor.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12433418 ]
           
Chris Howe commented on OFBIZ-213:
----------------------------------

If this needs to be considered when drop shipping, then there's an incorrect assumption being made about what action is triggering the gl entries.

I'm not in front of any code to confirm naming conventions in the code, so please regard the following as concepts.
Setting OrderItem to completed status should be triggering the gl entry, not shipment of the item.  

Shipment should change the OrderItem status to shipped (or packed, I remember David mentioning something about this being the last status for a shipment, perhaps my thinking on this is unrelated), this change should trigger a service to run that looks up the FOB term of the order (and if none, takes from a currently non-existant, I believe, FOB setting for product store), if FOB ship then change OrderItem to completed change OrderItem status to completed, if FOB dest, do nothing.  Once delivery and acceptance of product is confirmed then FOB ship service will change OrderItem status to completed.  

OrderItem status being set to completed should then trigger the gl entries.  GL entries should only be made when there is a measurable economic event.  Shipping is only a measurable economic even for the services of the carrier (eg UPS bill), not for the exchange of product.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12433428 ]
           
David E. Jones commented on OFBIZ-213:
--------------------------------------

Chris: Orders have no impact on financial information. At different parts of their lifecycle they are related to invoices, item issuances, and so on that do have a financial impact and all of the stuff for has already been implemented and is fairly stable.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12433430 ]
           
Chris Howe commented on OFBIZ-213:
----------------------------------

David: You're right, I meant to say InvoiceItem, like I said, I'm not in front of any code.  Thanks for the correction.

In any case, it's possible that I'm speaking of opentaps financials rather than Ofbiz.  Which ever one has the service that is doing the second step is the one that needs to have a little more logic

Step 1) After an order is shipped there's a service that generates an invoice
Step 2) Another service automatically sets that invoice to "Ready" (or some status like that)
Step 3) Setting the invoice to "Ready"  triggers the GL entry


But, in regards to this Jira issue, GL entries should not be affected by whether you're drop shipping an item or shipping an item from you physical inventory.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12433442 ]
           
Daniel Kunkel commented on OFBIZ-213:
-------------------------------------

Chris, are the credit card rules on drop shipping the same for normal shipments? If memory serves me, for normal products you cannot charge a customer until the package is packed and ready to go.

I know Jacopo is just starting with a simple drop shipping scheme, but it seems that we may eventually need a workflow that includes waiting to get feedback from the drop shipper that a package is packed and ready to go before charging the customer, and associated gl entries.

Eventually I would also like to see an optional recurring backlog reminder to the store administrator and / or the drop shipper reminding them of any backlogged orders, since backordered dropped shipped orders are so easy to forget about.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

     [ http://issues.apache.org/jira/browse/OFBIZ-213?page=all ]

Jacopo Cappellato closed OFBIZ-213.
-----------------------------------

    Resolution: Fixed

Drop shipments are now implemented.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12441886 ]
           
Alex Shevchuk commented on OFBIZ-213:
-------------------------------------

In what release version that feature will be available (havenot found in latest http://svn.ofbiz.org/svn/ofbiz/trunk (7930),  applications/product/entitydef/entitymodel.xml (7855))?

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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[Nicolas Malin (Jira)]

    [ http://issues.apache.org/jira/browse/OFBIZ-213?page=comments#action_12441938 ]
           
Jacques Le Roux commented on OFBIZ-213:
---------------------------------------

Alex,

Please look at the "new" (months old) Apache repository :  http://incubator.apache.org/ofbiz/svn.html

BTW http://incubator.apache.org/ofbiz/docs/GettingAndUsingOFBiz.pdf should certainly be updated.

> Support for true drop shipping
> ------------------------------
>
>                 Key: OFBIZ-213
>                 URL: http://issues.apache.org/jira/browse/OFBIZ-213
>             Project: OFBiz (The Open for Business Project)
>          Issue Type: New Feature
>          Components: order, product
>            Reporter: Jacopo Cappellato
>         Assigned To: Jacopo Cappellato
>
> Currently, it is possible to "drop ship" by creating requirements, creating purchase order to ship to the customer, and then receiving that purchase order into a warehouse: this process is not exactly a 'drop shipment', it looks more a 'cross dock shipping' where, after the product is ordered by the customer, it  is purchased from a supplier, received in warehouse and immediately shipped from there to the customer.
> The idea now is to create a true "drop ship" capability which directly ships an order to the customer without the extra steps and post it to G/L without holding it inventory. However the initial implementation will be very simple.
> Here are some of the implementation details as discussed in the dev mailing list (thanks to David, Si and others):
> **********************************************
> Data model changes/seed data changes
> **********************************************
> 1) SupplierProduct.willDropShip (new field): an indicator of whether or not the supplier will drop-ship that particular product
> 2) New seed data for Product.requirementMethodEnumId to list also:
> - allow manual drop ship
> - auto drop ship on low quantity
> - only drop ship (never stock)
> **********************************************
> Business logic
> **********************************************
> The basic idea (first draft) is to automatically create a purchase order when drop ship items are sold.
> No reservation, shipment etc will be done on the drop ship items of the sales order (drop ship items will be treated in a similar way of digital products).
> The supplier will ship directly to the customer.

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