Who owns consignment stock?

The supplier, until actual sale or consumption at the buyer. That's why it must be tracked separately, by owner, in the WMS and accounting.

Difference between consignment and VMI?

VMI concerns who manages replenishment (the supplier decides when to refill); consignment concerns stock ownership (it stays with the supplier until consumed). They are often combined.

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Operations Glossary
Consignment stock

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Category: Logistică

Consignment stock

Quick answer: Goods physically at the buyer but owned by the supplier until actual sale or consumption.

Key takeaways

The supplier delivers consignment stock (no ownership transfer)
The buyer reports consumption/sales periodically
Invoicing covers the consumed quantity (often via self-billing)
Remaining stock is replenished or returned

What consignment is

Consignment stock is goods delivered by the supplier and stored at the buyer, but remaining the supplier's property until sold or consumed. The buyer pays only for what it actually uses.

How it works

The supplier delivers consignment stock (no ownership transfer)

The buyer reports consumption/sales periodically

Invoicing covers the consumed quantity (often via self-billing)

Remaining stock is replenished or returned

Why it matters

Consignment reduces the buyer's tied-up capital and overstock risk, while the supplier gains presence at the point of sale. It requires precise ownership tracking.

How Azuvio helps

The Azuvio WMS tracks consignment stock separately (by owner), reports consumption to the supplier via portal/EDI and triggers correct invoicing — with no ownership confusion in inventory.

Frequently asked

Who owns consignment stock?: The supplier, until actual sale or consumption at the buyer. That's why it must be tracked separately, by owner, in the WMS and accounting.
Difference between consignment and VMI?: VMI concerns who manages replenishment (the supplier decides when to refill); consignment concerns stock ownership (it stays with the supplier until consumed). They are often combined.

Where Azuvio fits

Related terms

VMI (Vendor Managed Inventory) — The supplier manages stock at the customer/shelf — orders are triggered automatically at threshold, not issued manually.
Self-billing — The model where the buyer issues the invoice on the supplier's behalf, based on confirmed receipt.
Supplier portal — A platform where suppliers see your orders, confirm dates, send ASNs and invoices, and track their payments.
Inventory turnover — How many times stock is fully sold and replenished in a period — a measure of capital efficiency.

Last updated: 2026-07-06