What term describes an item sent directly from vendor to customer without being processed in inventory?

The term that describes an item sent directly from the vendor to the customer, bypassing the retailer's inventory, is "Drop Shipment." This process allows for a more streamlined operation, as the retailer does not need to hold inventory on hand, which can save on storage costs and reduce delivery times for the customer.

In a drop shipment scenario, when a customer places an order, the retailer forwards the order details to the supplier or manufacturer, who then ships the product directly to the customer. This model is particularly advantageous for businesses that want to offer a wide range of products without the need for significant capital investment in inventory.

By utilizing drop shipments, companies can offer more flexibility in their offerings, quickly adapt to market demands, and improve customer service by providing faster fulfillment. This practice is especially relevant in e-commerce, where quick delivery is often a critical factor in customer satisfaction.