Drop Shipping Within the Wholesale Distribution Industry
American executive professional Paul Iaderosa worked as the Vice President of Operations, Sourcing, Distribution Services, and Canada at HD Supply, a large-scale diversified North American wholesale distributor. With extensive experience in vendor relations and global manufacturing, Paul Iaderosa guided distribution, logistics, sourcing, and corporate operations within the organization.
Drop shipping is a popular business model within the supply chain management industry in which a retailer partners with a wholesale distribution company that takes responsibility for order fulfillment. The advantages of a drop shipping arrangement are that retailers are not required to handle inventory, to deal with storing large product quantities, or to manage the shipping of products to customers. Rather, the products are shipped directly to the customers from the distributor, who may charge shipping and/or handling fees. The distributor may also deal with product returns.
Drop shipping is popular with small businesses that have limited capital, as the need for large inventory purchases is avoided. Additionally, large storage space areas are not required. This means businesses may offer a wide range of products to customers, and simply forward the orders on to the wholesale distributor to be fulfilled as necessary.