Consignment Stock for Slow-Moving Parts
How it works
| Element | Typical arrangement |
|---|---|
| Ownership | Supplier owns until consumed |
| Location | Held at your site or a nearby hub |
| Replenishment | Automatic when the level drops |
| Settlement | Invoiced on consumption, monthly |
| Review | Agreed list reviewed each quarter |
Protect both sides
- Define which parts qualify: slow movers, not everything.
- Agree how obsolete stock is removed from the list.
- Confirm who pays for freight on returns.
Consignment suits predictable maintenance, not emergency repairs.