Consignment Stock

Inventory physically held by the customer but owned by the supplier until consumption or agreed transfer.

Examples

01The fastener supplier keeps consignment stock in the customer's warehouse and invoices only when parts are taken out.
02Every month, both companies review consignment stock levels and usage to agree on the right minimum and maximum.
03Consignment stock cuts the customer's working capital by EUR 300,000 while parts are still available on site.