By default, Ordoro will commit inventory for orders that are in the dropshipped status, but only temporarily. Once the order is shipped, the Committed quantity is reduced and the Physical On Hand inventory will not reduce. We now have the option to exclude this temporary calculation altogether.
Please contact Ordoro Support at support@ordoro.com if you would like to enable this feature in your account. Only certain Ordoro plans are eligible to use this feature.
Why is this helpful?
If you do not need to keep track of your supplier’s inventory in Ordoro, this feature will come in handy. Because the inventory on your dropshipped orders is not considered to be part of your warehouse’s inventory, you’ll see this handled in the inventory calculations in Ordoro. The thinking is that this inventory on the dropshipped order is handled by your supplier, not your warehouse.
What happens when you dropship an order
Whether autodropshipping or manually dropshipping, the inventory for these SKUs will not change since dropshipping the order should not impact the inventory in your warehouse. Your warehouse inventory will only account for committed quantities associated with orders in the Awaiting Fulfillment status.
Here’s an example.
- In Warehouse A, the inventory for SKU ABC is:
- Physical On Hand: 8
- Available On Hand: 7
- Committed Quantity: 1 (In this example, there is 1 Awaiting Fulfillment order for 1 unit of this SKU.)
- An order imports into Ordoro into the Awaiting Fulfillment status. The inventory will update to:
- Physical On Hand: 8
- Available On Hand: 6
- Committed Quantity: 2
- The order is dropshipped by either manual dropshipping or process dropshipping.
- In Warehouse A, the inventory for SKU ABC is now:
- Physical On Hand: 8
- Available On Hand: 7
- Committed Quantity: 1
- When this order is shipped, the inventory will remain as:
- Physical On Hand: 8
- Available On Hand: 7
- Committed Quantity: 1