GlossaryEN1 min readUpdated: Jun 16, 2026
Call-Off Stock
Picture a production line that cannot afford to wait for parts: rather than placing individual purchase orders, the manufacturer draws from a dedicated stock held by the supplier under a framework agreement – this is call-off stock in practice.
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Source: https://wirtschaftslexikon.gabler.de/definition/abruflager-50125
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Definition & Explanation
Picture a production line that cannot afford to wait for parts: rather than placing individual purchase orders, the manufacturer draws from a dedicated stock held by the supplier under a framework agreement – this is call-off stock in practice. The inventory sits either at the supplier's premises or an agreed intermediate location and is transferred to the buyer only upon call-off. Lead times are effectively eliminated, procurement administration is reduced, and the buyer avoids maintaining a separate safety stock. For cross-border arrangements within the EU, call-off stock held in another member state's warehouse is subject to specific VAT simplification rules with associated reporting obligations. The model is most prevalent in automotive just-in-time supply chains, where unplanned production stoppages must be prevented.
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