MANAGEMENT

Detailed explanation-1: -Cutting costs and eliminating inventory is the most crucial benefit of a consignment inventory model. But it also means streamlining the supply chain as well. Consignment inventory can help suppliers, manufacturers, and wholesalers avoid the costs of carrying stock and separate storage units.

Detailed explanation-2: -In a Non-Consigned program, the customer pays for the inventory as it’s brought in, and whenever replenishment is necessary.

Detailed explanation-3: -What is consigned inventory? Consignment is when distributors stock and manage inventory at a customer’s site, such as a warehouse, stockroom, or jobsite, but the customer doesn’t pay for the inventory until it is used or sold. This can be a profitable strategy when coupled with the right consignment tracking system.