A Consignment Inventory Program is an arrangement under which a supplier stores a mutually agreed amount of inventory at a customer’s location, with the understanding that the customer will pay for the material when it uses or sells it, or by some mutually agreed date.

In some situations our Clients are the "supplier" and in others they can be the "customer."

But, why would a company want to have inventory tied up at a customer’s location? What’s in it for the supplier?