Definition
The consignment procurement scenario covers the flow of sequential processes of providing goods by the vendor to the company on consignment terms. Within this scenario, the vendor provides materials and stores them in the company's warehouse. Goods are provided mainly for resale purposes. Before its use by the company, the goods belong to the vendor. In rare cases, this consignment procurement scenario is used for consumption by the company for internal needs (for example, manufacturing). In this case, the consignment procurement scenario is similar to the S2P Procurement via vendor-managed inventory scenario. All goods consumed by the company need to be redeemed, and an invoice issue must be initiated. Consignment contracts usually define the terms of regular notifications about the sale of goods, goods consumption, and identified goods shortages. The company regularly tracks the consignment goods level and sales statistics to timely initiate the follow-up actions:
Legend
- a process group the process belongs to - a typical business process - a typical E2E business process scenario - a typical E2E business process cluster
Consignment procurement flowchart
Business processes list
- F2P Purchasing planning
- Assess inventory requirements for procurement
- Generate purchase order based on plan
- Generate purchase order based on demand
- Specify terms for consignment procurement and submit for approval
- Confirm purchase order and send to vendor
- P2M Inbound logistics
- Fill up company stock by vendor
- Monitor consignment procurement
- O2C Sales of goods from stock
- Issue consignment notification of goods sold
- Issue commission fee invoice to consignor
- Issue customer invoice for one-off services
- Process outgoing payment
- Process consignor invoice for redeemed consignment goods
- R2R Vendor invoice offset (Based on purchase order)
- Register goods pick up by consignor
- P2M Outbound logistics