Consignment stock allows for the customer to retain full control management and provides assurance on the continuity of supply. This provides an opportunity to reduce the value of inventory and increase cash flow.
MBW consignment is arranged after consultation with the customer to establish a stock profile, usually based upon one month's usage, plus an allowance to cover any exceptional production demands. The day to day stock is managed by the customer and will only be invoiced as it is replenished. MBW will monitor stock levels periodically to ensure adequate levels are maintained.
To implement this arrangement a contractual agreement is required and minimum quantity guarantees may be required on special items. However, the customer benefits from: