Walgreens to expand drop-ship network through the Internet

Walgreen Co., with 4,600 stores in 44 states, is turning to the Internet-based logistics service CommerceHub to expand its drop-shipping network, CommerceHub reports.

Walgreens is joining other retailers including Taget Corp, Sears, Roebuck and Co. and Federated Department Stores Inc. in using CommerceHub as a central application for connecting with suppliers that offer drop-shipment services. CommerceHub hosts the logistics service on the Internet, and provides web-based tools to let retailers administer and monitor their drop-shipping arrangements.

CommerceHub takes orders from retailers and forwards them to suppliers, regardless of whether retailers and supplies are using compatible network applications, says CommerceHub CEO Frank Poole.

Poole adds that more retailers are turning to a third-party Internet-based drop-shipment management system to save on inventory costs while dealing with a larger number of drop-ship suppliers.