GlossaryEN1 min readUpdated: Jun 16, 2026
Consignment Stock Delivery
A consignment stock arrangement is an inventory held at the customer's premises that remains the supplier's property until the goods are actually withdrawn or consumed.
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Source: https://www.logistik-wiki.de/wiki/Konsignationslager
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Logistics Concept
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Definition & Explanation
A consignment stock arrangement is an inventory held at the customer's premises that remains the supplier's property until the goods are actually withdrawn or consumed. Payment is triggered by usage, not by delivery. The supplier bears the inventory risk and finances the stock in advance, but gains reliable demand visibility and secured revenue. Operationally, the model requires precise stock management, regular cycle counts, and contractually defined replenishment thresholds at which the supplier automatically restocks. Not to be confused with Vendor-Managed Inventory (VMI): under VMI the supplier also takes responsibility for planning replenishment quantities, whereas in a consignment arrangement the customer controls withdrawals.
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