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Konsignationslager

Also: Konsignationslager, Konsignationsbestand, Konsignationsware, Konsignationslagerung, Konsi-Lager

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In brief

A consignment warehouse is a stock held at the customer's site where goods are physically stored at the buyer's premises but remain the legal property of the supplier until they are withdrawn or consumed. Invoicing only takes place at the time of actual withdrawal.

Key facts

What is a consignment warehouse?

In a consignment warehouse arrangement, the supplier stores goods on the buyer's premises or site without transferring ownership of those goods. The transfer of ownership only occurs when the buyer withdraws or consumes the goods – and it is only at that point that the payment obligation arises. For the buyer, this means physical availability without immediate capital commitment. For the supplier, it means the goods remain part of their current assets on the balance sheet for as long as they are held in consignment stock.

How does a consignment warehouse work in practice?

The basis is a consignment agreement that covers at minimum the following points: who manages the inventory, how withdrawals are documented, what minimum stock levels must be maintained, when replenishment is triggered, and how inventory discrepancies, shrinkage and obsolescence are handled. In practice, the supplier often takes on inventory monitoring – either through regular on-site counts or via electronic access to the buyer's merchandise management or warehouse management system.

Withdrawal documentation is the critical point: without complete recording of every withdrawal, discrepancies arise that are difficult to resolve contractually. Many operations rely on barcode or RFID scanning directly at the point of withdrawal to ensure automatic posting. Some consignment models work with periodic billing – for example weekly or monthly – based on reported consumption data.

Warehouse planning presents a particular challenge: consignment stock occupies floor space and ties up storage capacity, yet does not appear in the buyer's own inventory. This must be clearly reflected in space planning and in the warehouse management system to prevent confusion with the buyer's own stock.

What matters when selecting and structuring the contract?

Several aspects need to be clarified when introducing a consignment warehouse:

  • Inventory responsibility: Who manages the stock, and with which system? A lack of system integration significantly increases the manual workload.
  • Replenishment rules: Are minimum stock levels reported automatically, or does the responsibility lie with the buyer?
  • Liability and insurance: Goods owned by the supplier but held on the buyer's premises – who is liable in the event of damage, theft or fire?
  • Stocktaking and discrepancies: How are count differences handled, and who bears the cost of shrinkage or spoilage?
  • Obsolescence: What happens to goods that are not withdrawn because requirements change?

Whether a consignment warehouse makes sense depends heavily on the supplier–buyer relationship, the product structure and the available IT setup. It is particularly well suited to C-parts, consumables or items with a high withdrawal frequency and low unit value – and less suitable for expensive, slow-moving goods with a high risk of obsolescence.

Frequently asked questions

Vendor Managed Inventory (VMI) describes who takes responsibility for inventory planning and replenishment management – namely the supplier. A consignment warehouse additionally defines who owns the goods: they remain the supplier's property until withdrawn. VMI and consignment are frequently combined, but they are independent concepts – VMI is also possible without a transfer of ownership.

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