Create an effective and efficient drop ship program and learn to overcome common challenges. Senior management in today's organizations is always pressing for more cost reduction efforts year after year. Supply chain management professionals including logistics and supply management are constantly on the alert for new ways to reduce costs. Drop shipping and cross-docking methods reduce the costs to receive inventory, stock-it, pick-it, and ultimately ship it to customers. All of these material handling transactions are expenses as well as inventory carrying costs. There are also equipment expenses. Drop shipping moves goods from manufacturing or distributor directly to the ultimate customer eliminating all of these transactions and the holding of inventory. It is also eliminates the need for the supplier to carry inventory since goods are shipped directly to the customer from the manufacturer eliminating warehouse handling. Like anything else, a process must be mapped out and put into place that creates an effective and efficient drop ship program. There are many challenges as well as benefits when drop shipping goods. This content provides information on how to implement a successful drop ship process from the purchase order to the customer's receipt of the shipment to payment. There is a lot of opportunity to save money, reduce transactional efforts, and improve customer service through a drop ship program.