Meaning of Drop Shipment  :-  Drop Shipment is the process where customer places a purchase order on a company and that company instructs its supplier to directly ship the items to the customer.
 
Drop shipment is used due to the following reasons :-
1. Customer requires an item that is not normally stocked.
2. Customer requires a large quantity of items which is not available with you.
3. It is more economical for the supplier to directly ship the items to the customer.