Consignment Inventory

Let us help you free up cash resources.  With our Consignment solution we take demand uncertainty out of the equation and replace it with product supply confidence.

What is the Consignment solution?

Consignment inventory is inventory that is in the possession of the customer but is still owned by the supplier.  A consignment arrangement is used as a way to reduce transactional activity and lower costs.  Typically consigned items are those that a supplier or customer would not stock due to budget constraints, demand uncertainty, are critical but unpredictable or are associated with a lot of small orders.  Our Consignment solution is designed to provide higher service levels by having products immediately available.

How it works?

Never be out of inventory.  A supplier places inventory at a customer’s location and retains ownership of the inventory until it is consumed.  The supplier may or may not manage the inventory.  The customer and supplier agree on specific replenishment and billing events.  This solution includes onsite visits for count verification.  Additional considerations besides product include space, length of agreement and replenishment method.  We work with you to create a program that meets your needs.


Benefits associated with our Consignment solution are:

  • Reduce inventory carrying costs/Free up cash for the business
  • Lower cost of indirect materials
  • Improved service levels
  • Save expedited freight costs
  • Reduce transactional activities