Definition
Inventory placed at a customer's or distributor's site that remains owned by the supplier until it is sold or used, at which point payment falls due. It improves product availability for the customer while delaying their cash outlay. The supplier carries the inventory risk until the goods are drawn down.
Frequently asked questions
What is Consignment Stock?
Inventory placed at a customer's or distributor's site that remains owned by the supplier until it is sold or used, at which point payment falls due. It improves product availability for the customer while delaying their cash outlay. The supplier carries the inventory risk until the goods are drawn down.
Which glossary terms are related to Consignment Stock?
Consignment Stock is a supply chain & warehousing term in the South African import/export industry. Related terms in the same area include 3PL (Third-Party Logistics), 4PL (Fourth-Party Logistics), ABC Analysis, Bonded Logistics, Bonded Warehouse (SOS/OS) — each has its own plain-English definition in the TradeCaravan glossary.