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GlossaryEN1 min readUpdated: Jun 23, 2026

Consignment Transport Management

A pharmaceutical company stocks regional distribution partners without immediate invoicing – that is consignment transport management in practice.

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A pharmaceutical company stocks regional distribution partners without immediate invoicing – that is consignment transport management in practice.

A freight forwarder or logistics provider plans, executes, and monitors the movement of goods that legally remain the consignor's property until the consignee sells or consumes them.

The scope extends well beyond basic transport: it covers ongoing inventory tracking at the consignee's premises, usage-based invoicing, and the coordination of returns for unsold or defective goods.

Last updated: 23 June 2026Published: 19 June 2025

Source: https://www.cips.org/knowledge/procurement-topics-and-skills/operations-management/consignment-stock/

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Consignment Transport Management

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Definition & Explanation

A pharmaceutical company stocks regional distribution partners without immediate invoicing – that is consignment transport management in practice. A freight forwarder or logistics provider plans, executes, and monitors the movement of goods that legally remain the consignor's property until the consignee sells or consumes them. The scope extends well beyond basic transport: it covers ongoing inventory tracking at the consignee's premises, usage-based invoicing, and the coordination of returns for unsold or defective goods. The model is widespread in pharmaceuticals, automotive supply chains, and retail, where manufacturers need regional stock availability without an immediate transfer of title. Unlike a standard purchase contract, the receivable only arises upon actual sale – a distinction that generates specific documentation and reconciliation obligations for all parties involved.

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Recommended format: Source: Freight Academy – Consignment Transport Management (https://www.freight-academy.com/en/glossary/consignment-transport-management), accessed 2026-09-17
APA style: Freight Academy Editorial Team. (2025). Consignment Transport Management. Freight Academy. https://www.freight-academy.com/en/glossary/consignment-transport-management
BibTeX: @misc{consignmenttransportmanagement2025, title = {Consignment Transport Management}, author = {{Freight Academy Editorial Team}}, year = {2025}, url = {https://www.freight-academy.com/en/glossary/consignment-transport-management}, note = {Freight Academy, accessed 2026-09-17} }

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