Consignment inventory is a type of inventory where the seller retains ownership of the goods until they are sold by the consignee. This type of inventory arrangement is often used in retail, where the manufacturer or distributor places their products in a retailer’s store for sale. The retailer only pays for the products when they are sold to customers.
There are a number of benefits to using consignment inventory. For the seller, consignment inventory can help to increase sales and expand into new markets. For the consignee, consignment inventory can help to reduce inventory costs and improve cash flow.
However, there are also some challenges associated with consignment inventory. One challenge is that the seller must track the inventory that is in the consignee’s possession. Another challenge is that the seller must manage the risk of loss or damage to the inventory.
Acumatica ERP provides a number of features to help businesses manage consignment inventory. These features include:
Consignment inventory tracking: Acumatica ERP can track the quantity and location of consignment inventory. This information can be used to generate reports that help businesses to make informed decisions about their inventory levels.
Consignment sales processing: Acumatica ERP can process consignment sales transactions. This includes tracking the sales price, commission rate, and other relevant information.
Consignment inventory reporting: Acumatica ERP provides a number of reports that can be used to manage consignment inventory. These reports include consignment inventory on hand, consignment sales by item, and consignment sales by customer.
If you are considering using consignment inventory, Acumatica ERP can help you to manage this type of inventory effectively.
Here are some additional tips for managing consignment inventory:
Establish clear agreements with your consignees. These agreements should specify the terms of the consignment arrangement, such as the commission rate, the ownership of the inventory, and the risk of loss or damage.
Track your consignment inventory closely. This will help you to ensure that you have enough inventory to meet customer demand and to avoid stockouts.
Reconcile your consignment inventory regularly. This will help to ensure that your records are accurate and that you are not paying for inventory that has already been sold.
Use a software solution to help you manage your consignment inventory. A robust software solution such as Acumatica ERP scan help you to track your inventory, process sales transactions, and generate reports.
How to Manage Consignment Inventory in the Jewelry Business with Acumatica ERP
Consignment inventory is a common practice in the jewelry business, where jewelers often share their products with other retailers through memo out or consignment out and consignment in concepts. Acumatica ERP can help jewelers to manage consignment inventory effectively with its built-in consignment inventory features and the Acumatica JewelShop plugin.
Acumatica ERP’s consignment inventory features include:
Consignment inventory tracking: Acumatica ERP can track the quantity and location of consignment inventory, as well as the ownership of the inventory and the risk of loss or damage.
Consignment sales processing: Acumatica ERP can process consignment sales transactions, including tracking the sales price, commission rate, and other relevant information.
Consignment inventory reporting: Acumatica ERP provides a number of reports that can be used to manage consignment inventory, such as consignment inventory on hand, consignment sales by item, and consignment sales by customer.
The Acumatica JewelShop plugin also provides a number of features that can help jewelers to manage consignment inventory, including:
Memo out and consignment out tracking: The JewelShop plugin can track the quantity and location of memo out and consignment out inventory, as well as the status of each item (e.g., on memo, on consignment, sold, returned).
Consignment in tracking: The JewelShop plugin can track the quantity and location of consignment in inventory, as well as the consignor and the commission rate.
Consignment sales processing: The JewelShop plugin can process consignment sales transactions, including tracking the sales price, commission rate, and other relevant information.
Consignment inventory reporting: The JewelShop plugin provides a number of reports that can be used to manage consignment inventory, such as memo out and consignment out inventory on hand, consignment in inventory on hand, consignment sales by item, and consignment sales by customer.
How to Get the Most Out of Consignment Inventory in Your Medical Business with Acumatica ERP?
In the medical manufacturing industry, consignment is often used to provide free trials of new equipment to hospitals. This allows hospitals to try out new equipment before they commit to buying it.
Here is a typical consignment process for medical equipment free trials:
The hospital and the medical device manufacturer agree on the terms of the consignment, such as the length of the trial period, the number of devices that will be provided on consignment, and the conditions for returning the devices.
The medical device manufacturer ships the devices to the hospital.
The hospital uses the devices during the trial period.
At the end of the trial period, the hospital decides whether to purchase the devices. If the hospital decides to purchase the devices, they pay the medical device manufacturer.
If the hospital decides not to purchase the devices, they return them to the medical device manufacturer.
Medical manufacturing companies typically track consignment inventory using a software system. This software system helps them to track the location of the devices, the status of the devices (e.g., on trial, returned), and the terms of the consignment agreements.
Here are some benefits of using consignment for medical equipment free trials:
Reduced risk for hospitals: Consignment allows hospitals to try out new equipment before they commit to buying it. This can help hospitals to avoid making expensive mistakes.
Increased sales for medical device manufacturers: Consignment can help medical device manufacturers to increase sales by giving hospitals the opportunity to try out their products before they buy them.
Improved patient care: Consignment can help to improve patient care by giving hospitals access to the latest medical equipment.
Overall, consignment can be a beneficial arrangement for both hospitals and medical device manufacturers. Talk to our ERP experts on how to manage your consignment inventory in Acumatica, reach out to us through our contact us page.
