What is a consignment warehouse?
A consignment warehouse, also known as a customer consignment warehouse, is a warehouse located in the immediate vicinity of the customer. The goods and raw materials stored there remain the property of the storing party until the customer removes them. Only when this happens does a so-called delivery take place as a legal transaction.
What are the advantages of a consignment warehouse?
A consignment warehouse offers a number of advantages for both the warehouse keeper and the recipient of the goods.
For the depositor/seller:
- A long-term supply relationship is established between the depositor and the customer, which enables long-term financial planning
- If a consignment warehouse is located on the customer's premises, there are no storage costs
- The depositor is the owner of the goods until they are removed and is therefore protected against the buyer's insolvency
For the customer/buyer:
- The customer always has access to the goods in the warehouse, which ensures a high level of supply security
- Without your own warehouse, many fixed costs are eliminated
- Low capital commitment, as the material only has to be paid for after removal
