E1: 42I: Outbound Inventory Management for Consigned Inventory
(Doc ID 2194927.1)
Last updated on JULY 08, 2019
Consigned Inventory Management is a supply chain management strategy in which supplier places some of their inventory in their customer's possession (in customer's store or warehouse) without billing the customer until after the goods are consumed. After customer reports usage, supplier invoices the customer for the consumed goods.
The following are the steps that are commonly observed in consigned inventory business:
- Supplier and customer establish an agreement for shipping and maintaining inventory at the customer’s location. The agreement dictates the terms like agreement qty, agreed price, agreed inventory levels to be maintained at customer’s location, when and how to replenish the inventory at customer's location.
- Supplier ships inventory to the customer’s location.
- Customer acknowledges receipt of the inventory.
- Customer consumes the inventory and reports the consumption to the supplier.
- Supplier invoices the customer for the consumption reported.
- If agreed, Supplier replenishes the inventory at the customer’s location based on the agreed inventory levels and the replenishment method.
This document provides details on Outbound Inventory Management for Consigned Inventory including an Overview, Setup, Consigned Agreement Management, Consigned Shipping Line Process Flow, Consigned Billing Line Process Flow and frequently asked questions.
To view full details, sign in with your My Oracle Support account.
Don't have a My Oracle Support account? Click to get started!