// ROBOTICS AND SMART FACTORIES TERM
Consignment
Consignment is an arrangement where goods are sent by their owner (consignor) to an agent (consignee) to be sold. The consignee pays the consignor only after the goods are sold.
TECHNICAL DEFINITION
Consignment is a business arrangement where a consignor (owner) delivers goods to a consignee (agent) for sale, retaining ownership until the goods are sold, with the consignee typically earning a commission on sales and returning unsold inventory.
BACKGROUND
The Henequen industry in Yucatán is an agribusiness of a plant native to Yucatán, Mexico. After extraction from the plant, henequen is processed as a textile in various forms to obtain a range of products for domestic, commercial, agricultural and industrial use. It was exported to America as binder twine for crops in large quantities, and worldwide as rope for mooring ships, cloth for sacks, and other uses. It was a major regional industry from the time of the Maya civilization until the mid 20th century. The invention of synthetic fibers and the manufacturing of substitute products from these displaced henequen and sisal fibers and led to the decline of the industry over the course of the 20th century.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Consignment stock
- goods on consignment
- inventory on hand
USAGE NOTE
Consignment can help suppliers expand market reach without requiring retailers to purchase inventory upfront.
DEVELOPERS
Organizations developing technology related to Consignment.
A global leader in enterprise software, SAP offers comprehensive ERP and supply chain management (SCM) solutions that include advanced modules for managing consignment inventory, optimizing supplier collaboration, and automating procurement processes critical for manufacturers adopting Industry 5.0 principles.
Oracle provides extensive cloud-based ERP and SCM suites that enable manufacturers to effectively manage consignment stock, optimize inventory levels through AI and machine learning, and streamline supplier relationships, contributing to more resilient and efficient supply chains.
Infor specializes in industry-specific cloud software, including robust manufacturing ERP systems that support detailed consignment inventory management, intelligent demand planning, and enhanced supplier collaboration to improve operational efficiency and responsiveness in manufacturing.
Blue Yonder offers AI-powered supply chain planning and execution solutions, helping manufacturers optimize inventory, including consignment stock, through predictive analytics, intelligent demand forecasting, and improved real-time visibility across the supply chain.
A leader in supply chain and omnichannel commerce solutions, Manhattan Associates provides advanced warehouse management (WMS) and inventory management systems that facilitate the tracking, control, and optimization of consigned goods within a dynamic manufacturing environment.
E2open operates a leading network-based platform for multi-enterprise supply chain management, enabling real-time visibility and collaboration across the entire supply chain, including detailed management of consigned inventory agreements and movements for manufacturers.
Plex Systems offers a cloud-native smart manufacturing platform, including ERP, MES, and supply chain modules, designed to manage all aspects of manufacturing operations, including precise tracking and management of consignment inventory to ensure production continuity and efficiency.
Kinaxis provides a concurrent planning platform (RapidResponse) for supply chain management, offering real-time visibility and scenario planning capabilities to optimize inventory, including consigned materials, ensuring resilience and responsiveness in complex manufacturing supply chains.