Introducing a consignment stock system_2

Q: I would like to introduce a consignment stock system for overseas suppliers. Can you explain the key principles and care points that should be taken before we embark on this?

A: Mike Fogg, consultant with PMMS Consulting Group, writes: The latest edition of the Dictionary of Purchasing and Supply by Ken Compton and David Jessop is always a good start on these questions of definition. It defines consignment stock as “stock (supplies) provided ‘on consignment’ in commercial trading and to be paid for as used or sold”.

The key...

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