GlossaryEN1 min readUpdated: Jun 22, 2026

consignment warehouse

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://de.wikipedia.org/wiki/Konsignationslager

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Logistics Concept

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Definition & Explanation

In a consignment warehouse arrangement, the supplier places goods physically at the customer's premises while retaining legal ownership until individual items are actually withdrawn for use or production. Invoicing and title transfer occur only at the moment of withdrawal. The buyer avoids tying up working capital in stored inventory and carries no stock risk; the supplier gains guaranteed availability at the point of use and a stronger competitive foothold. The model is most common in automotive supply chains and industrial manufacturing, where a production stoppage caused by a missing component far outweighs the logistics cost of the arrangement. In cross-border setups, customs compliance demands close attention: the moment of title transfer determines when goods must be declared for free circulation.

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