What Is a Consignment Stock?

"Consignment stock" is dealing with a backlog of inventory products.

Consignment inventory

Right!

"Consignment stock" is dealing with a backlog of inventory products.

Chinese name

Consignment inventory

Brief introduction

Is dealing with a backlog of inventory products

Consignment stock in SD

Already sent to customer, but customer has not consumed

Consignment stock in MM

Supplier ships over

"Consignment inventory" is an inventory processing method that handles the backlog of inventory products, freeing up space and increasing cash flow. The entrusting party entrusts the backlog of inventory products to the entrusted party for sale. The entrusting party generally needs to hand over the inventory products to the entrusted party for custody and authorize it to sell on behalf of the entrusted party. After the product is sold, the entrusted party shall settle the payment to the entrusting party and obtain

A typical inventory management adopted by Wal-mart, that is, when the supplier supplies to the supermarket, the financial attributes of the product still belong to the supplier, and the financial attribute transfer is officially realized only when the product is actually sold. Business coping.

This management method is currently only possible for leading companies in the retail industry. Suppliers are completely passive under this management method. If the goods cannot be sold, the supplier can only recover the goods from the retail supermarket. The retailer does not have Any financial risk.