Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How a Buyer Used Consignment Inventory to Free Working Capital
In this episode of The Buyer's Side, hosts Lucas and Luna explore how a mid-sized manufacturer used a consignment inventory arrangement to unlock $4.2 million in working capital and reduce inventory carrying costs by 18 percent. They walk through the specific terms of the deal—including payment upon consumption, minimum stock guarantees, and liability for obsolescence—and explain why consignment works best for high-volume, stable-demand components. They also discuss the trade-offs: suppliers often require higher unit prices or longer commitments to offset their own risk. Lucas shares a…
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