Consignment Management System
The system increases accuracy in keeping track of the retailer's inventory, informing the supplier about the product's standing in sales status and when it is best to restock; this is to avoid having dead stocks. Not only would it allow close monitoring for the consignor, but it would also be easier for accounting as it lessens the assumptions and estimations of sold items, decreasing the inaccuracies and loss caused by the constant changes.
To assist in consignment deals to allow more transparency between the consignor and the consignee. Consignment, in general, has more risks on the consignor's side than the consignee's. These risks are mainly due to the inability to keep track of inventory after being passed to the consignee. It leads to inaccurate accounts as all the products are assumed sold. Without the system, the records are potentially vulnerable to error, which will sooner cause issues regarding revenue collection. This problem may lead to penalties and unnecessary spending.
Business Integrity & Consignment Agreement
Better implement the consignment agreement by keeping a log and monitoring the transactions made, location of products, and delivering and receiving products. With the system, the respective party can be held accountable for inventory inability to be sold due to theft or damage. It may reduce the risk as a consignor since the consignee is responsible for handling, storing, and maintaining the condition of the products until it is sold or returned to the consignor.
Responsibility of a Consignee
On behalf of the consignee, integrity is maintained by possessing an accurate sales record, inventory, price of an item sold, and many more. Consignees with multiple consignments have difficulty in keeping track of many and separate records for each consignor. With the system, not only does it make managing easier, but it easily integrates with whatever existing system there is. Be able to provide real-time updates about the products to the consignor with just a few clicks.
Responsibility of a Consignor
As the consignor, the risk is greater on your part as you are entrusting your products with no guarantee of money return. Besides a consignment agreement, you may ensure safety by keeping track of the amount a consignee owes you based on a consignment item list placed in the system, including the number of stocks given date, price, and many more. With the software, you may monitor the sales of your products sold by your consignee in real-time. The system may also assist you in choosing a consignee by easily comparing and overseeing your respective consignee client list rates to get the best contracts for you.