Consignment Stock Management

Consignment stock management is a system where a supplier places their products in a retailer's store without requiring immediate payment. The retailer only pays for the items when they sell them. This arrangement allows the retailer to offer a wider range of products without upfront costs, while the supplier maintains ownership of the stock until sold. For effective management, both parties track inventory levels closely to ensure they have what they need while avoiding excess stock. This method benefits both vendors and retailers by reducing financial risk and improving cash flow.