Consignment Inventory - Owned by the Supplier

Inventory in the possession of the customer, but owned by the supplier is known as consignment inventory. This helps reduce lead times and transport delays from shipment of goods. The retailer does technically “pay” to warehouse these goods since space and real estate is used. What are some good examples of cosignment inventory?

Pros of Consignment Inventory

Builds relationships

Gets product visibility

Reduces inventory costs

Gives insight into product trends

For more information about consignment inventory, check out this detailed description of consignment inventory by Joshua Weatherwax.