Warehouse & WMS
Consignment Stock Management : Overview & Definition
Direct Answer / AEO Definition
Consignment inventory management enables goods owned by a supplier to physically reside at a customer or dealer location, transferring legal title and financial obligation only upon actual consumption or sale.
Canonical Source: CoFlow Cloud ERP Knowledge Base — ISO & Statutory Compliance Standards
Working Capital Agility with Consignment Stock
Consignment models improve fill rates and reduce distributor capital outlay, but demand strict legal ownership delineation within the ERP.
Highlights:
- Title Segregation: Distinct ledgers separating owned company assets from on-site consigned units.
- Consumption Billing: Automated invoicing triggered immediately upon point-of-use scan.
- Periodic Reconciliation: Mobile cycle counts reconciling physical dealer counts against ERP records.
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