As a supplier keen to get your products into major retailers, providing goods on consignment is a proven approach to encourage retailers to trIal a new product within their stores.
However, most standard inventory and ERP applications do not manage consignment stock very well. To get round this, many suppliers rely on a heavily manual, ad-hoc process to manage the consignment side of their supply chain. This often involves relying on email, rather than automated order entry, and manually maintained spreadsheets that live outside the standard ERP.
Not only is this very time consuming, but it also creates many opportunities for errors because the additional transactions necessary for consignment inventory are highly dependent on accurate information sharing. If this process is not monitored closely, suppliers very soon find themselves in a situation where managing and reconciling consignment stock is almost impossible.
When combined with OmPrompt’s Sales Order, Delivery, and Inventory visibility solutions, retailers and suppliers are able to benefit from a shared, complete end-to-end view of the status of the consignment product lines at any one time. Both parties can view any part of the process, from replenishment request, inventory movement, physical inventory holding, customer consumption, billing and returns, in one collaborative solution.