Consignment is when a supplier hands over products to a retailer without being paid for them initially. They are paid after a customer purchases the product from the retailer. This is a common practice among suppliers who don’t have much of a track record and are looking to establish themselves by getting products into large retail chains.
This can be a risky proposition. But suppliers can take some of the risk out of consignment by using an order management solution to make sure they know where all of their products are and when sales are made.
James Shores explains all of this and more in this week’s Whiteboard Wednesday. Come back next week for even more insights into inventory topics like this.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.