Consignment warehouse or how to save money on price, working capital and logistics costs.
Inventory management is targeted to reduce products cost and, as a result, to increase profitability. The more stocks you have – the more warehouse space you need, and the more expensive rent you pay for. Actual economic conditions require suppliers and purchasers to apply untraditional approaches in managing of supply chains. One of cost-down tools in course of purchases is the “consignment warehouse”.
Consignment warehouses are gaining more importance in economic activity when observing a mandatory condition of ongoing supply of goods. This problem is being most acutely felt in foreign trade.
What do you save and what advantages do you get when working with us via service of “consignment warehouse»:
- Cost of warehouse space renting. The more stocks you have – the more warehouse space you need for storing goods, and the more expensive renting cost you pay for. The service of “consignment warehouse” minimizes the need for inventories and, accordingly, the need for warehouse space.
- Cost of funds diversion. The goods are shipped in small lots, as required by the buyer and upon appropriate orders of the latter. You pay the supplier only for the goods that are shipped to the buyer.
- Cost of working capital. Inventories mean frozen money that you could use not only for investing new projects, but not attract at high interest rates as well. Make a calculation how much do you benefit from not keeping inventories that enables you to free up working capital, move it to other projects, pay off loans, etc.
- Labor costs for administration and maintenance of warehouses. Warehouse personnel can be transferred to the supplier to work for him.
- The price of goods may also be changed due to moving to shipment on consignment, as the basis of ownership transfer is changed. The supplier assumes more expenses, more risks. All these factors will affect the price.
You can get more detailed consultation by writing us a short request or by calling the number below.