Gartner Research

When to Say 'Yes' to Consignment Stock, When to Say 'No' and How to Link to VMI to Balance Benefits

Published: 06 October 2017

ID: G00327922

Analyst(s): Simon Bailey


Customers eager to reduce working capital may ask suppliers to delay transfer of ownership until the point of use or onward sale. Supply chain leaders focused on customer service must carefully consider the cost and risks, as well as potential benefits, especially in "as a service" business models.

Table Of Contents
  • Key Challenges



  • Offer Consignment Stock Only to Key Partners and Only When It Will Increase Total Value; Combine It With VMI
  • Ensure You Have a Strong Framework for the Collaboration Effort
    • Brewer and Key Retail Partner Benefit From Consignment Stock With VMI
  • Support Your Business's "as a Service" Model by Offering Consignment Stock as a Complementary Supply Chain Capability

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.