Production/Purchase Based on Sales

Sales-Driven Production and Procurement

Sales-driven production and procurement refers to the practice where merchants determine their production or purchasing plans based on the sales performance of their stores.

Common related concepts and terms include JIT, POD, BTO, and Dropshipping/Dropshipper:

• JIT (Just in Time): Just-in-time production, also known as zero-inventory or timely production system. The core principle is "trigger production on time, produce as needed, and minimize inventory."
• BTO (Build to Order): Production based on individual orders, suitable for industries with high-value or highly customized products, such as machinery, custom furniture, etc.
• POD (Print on Demand): Customized production based on consumer orders. The seller personalizes and produces the order only after receiving it, then fulfills the order. Typical examples include personalized clothing, home goods, and other customized products.
• Dropshipper: An intermediary in e-commerce linking suppliers and consumers. Operating an online store without holding inventory, the dropshipper fulfills orders directly from the supplier under the Dropshipping model.

Advantages of the Model

• Effectively helps merchants mitigate capital occupation risk and improve cash flow efficiency.
• Significantly reduces inventory risk and the pressure of stockpiling.
• Enables rapid response to market demand, allowing faster and more accurate decision-making.

Challenges of the Model

• Requires a highly responsive supply chain.
• Procurement costs cannot benefit from bulk-purchase discounts, and costs are significantly affected by market cycles.
• May increase customer waiting time, posing a risk of order loss for the store.

Shoplazza FBS Solutions

• OMS system empowerment: Through information integration, it connects your inventory, sales, and procurement management.
• One-click shipment approval: Quickly pre-generate and obtain logistics tracking numbers, changing store orders from "Pending Shipment" to "Shipped" rapidly.
• "Out of Stock" + "In Transit" features: Assist you in accurately completing, managing, and monitoring procurement actions.

Business Process

Consumer places an order → Store shows "Pending Shipment" → FBS system backend approves the order → Store order automatically changes to "Shipped" → Physical items procured and stocked into warehouse → Warehouse packs and ships → Consumer receives the package.

How to Fulfill Sales-Driven Production/Procurement Orders via Shoplazza FBS

1. Activate a Shoplazza FBS system account.

2. Bind your store to the FBS system.

3. Complete the physical SKU management system.

4. Set up SKU mapping (front-end display vs. back-end physical inventory).

5. Process order information flow.

6. Send physical packages to the FBS-designated warehouse.

7. Shoplazza FBS completes order fulfillment.