Consignment Stock
Consignment stock is a business arrangement where suppliers place their products in a retailer's or distributor's location, but keep ownership until the items are sold. Think of it like having items "on loan" - the store displays and sells the products, but only pays the supplier after a sale happens. This approach helps businesses manage inventory costs and risks. You might also hear it called "sale or return" or "vendor-managed inventory." It's common in retail, manufacturing, and distribution industries where managing stock levels efficiently is important.
Examples in Resumes
Managed Consignment Stock program resulting in 30% reduction in inventory costs
Implemented Consignment Inventory tracking system for 200+ supplier relationships
Oversaw VMI (Vendor Managed Inventory) and Consignment Stock agreements with key suppliers
Typical job title: "Inventory Managers"
Also try searching for:
Where to Find Inventory Managers
Professional Associations
Online Communities
Example Interview Questions
Senior Level Questions
Q: How would you design a consignment stock program for a large retail operation?
Expected Answer: A strong answer should cover relationship management with suppliers, inventory tracking systems, payment terms, risk management, and how to measure program success through KPIs like inventory turnover and cost savings.
Q: What are the main risks in consignment stock arrangements and how do you mitigate them?
Expected Answer: Should discuss inventory accuracy, damage liability, contract terms, supplier relationship management, and systems for tracking ownership and sales.
Mid Level Questions
Q: How do you track and manage consignment inventory separately from owned inventory?
Expected Answer: Should explain systems and processes for separate tracking, regular stock counts, reporting methods, and communication with suppliers about stock levels.
Q: Explain the payment process in a consignment stock arrangement.
Expected Answer: Should cover payment terms, timing, reporting sales to suppliers, reconciliation processes, and handling returns or damaged goods.
Junior Level Questions
Q: What is consignment stock and how is it different from regular inventory?
Expected Answer: Should explain that consignment stock remains supplier-owned until sold, basic benefits like reduced inventory costs, and simple tracking procedures.
Q: How do you perform a consignment stock count?
Expected Answer: Should describe basic inventory counting procedures, documentation requirements, and communication with suppliers about stock levels.
Experience Level Indicators
Junior (0-2 years)
- Basic inventory counting and tracking
- Understanding of consignment agreements
- Stock level monitoring
- Basic supplier communication
Mid (2-5 years)
- Supplier relationship management
- Inventory management systems
- Contract negotiation
- Performance reporting
Senior (5+ years)
- Program development and implementation
- Risk management
- Strategic supplier partnerships
- Process optimization
Red Flags to Watch For
- No experience with inventory management systems
- Poor understanding of supplier relationships
- Lack of knowledge about stock tracking procedures
- No experience with contract terms and negotiations
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