A consignment warehouse is a warehouse in which goods delivered by a supplier to a retailer are stored without the retailer paying for them immediately. Payment is only made when the goods are sold.
Warehouse management: Includes the storage and management of goods on consignment.
Risk minimization: Retailers only pay when the goods are sold.
Inventory control: Improved inventory control and management.
Benefits:
Cost reduction: Minimizes financial risk for the retailer.
Liquidity: Increases the retailer's liquidity.
Flexibility: Flexible use of goods according to demand.
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