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Stock, Consignment


Source: Procurement Glossary Author: Paul Rogers Institute: CIPS - UK	Courtesy of

An inventory of goods, materials or spare parts that are held, by agreement with the supplier, in the possession of the buyer. Whilst the goods are in the physical custody of the buyer, they remain the property of the supplier and are paid for as the buyer issues them. Consignment stock is sometimes supplied on a ‘sale or return’ basis. Vendor managed inventory extends the concept in that the supplier not only supplies the inventory but also manages the stock levels. See also Inventory, Vendor Managed.

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