Consignment Program Eliminates Stock Outs
E-Commerce Company
Consignment Program
Eliminated stock-outs, consolidated billings, decreased receiving
An e-commerce company was having trouble with packaging supply procurement after a long time manager moved onto a new opportunity. With turnover of 2-3 individuals the company was struggling to keep up with shipments and facing supply stock-outs. The Colony Salesperson met with the VP of Operations and offered to expand the consignment program for all of the company’s packaging products. Colony now maintains stock levels based off the company’s available storage, usage rate, and agreed upon min and max quantities. This approach has freed up management to focus on actual shipments and shipping efficiencies. The accounting department has also mentioned the benefit of monthly reconciliations and increased cashflow which allows more time spent on other tasks. With this program all transactions are listed on one monthly invoice. Additional benefits include decreased receiving and putaway time.