Consignment allows your business to keep stock on hand without buying it upfront.
You only pay when products are sold or used.
That simple shift changes everything.
It means:
Better availability when customers need it
Fewer delays waiting for deliveries
Less cash tied up on shelves or in vans
For businesses that sell, install, or use products, consignment is one of the most effective ways to grow without straining cash flow.
Consignment improves cash conversion by reducing upfront inventory spend while keeping product availability high, growth with less balance sheet strain.
Jobs are completed faster
When stock is already on site, work doesn’t stop while someone requests a quote, places an order, or waits for delivery. You complete tasks in one visit, reduce downtime, and keep schedules (and customers) moving.
Stockouts are reduced
Having stock available at the point of use dramatically reduces last-minute shortages. That means fewer lost sales, fewer delays, and less time spent scrambling to source urgent replacements.
Cash flow improves
You stop paying for stock weeks or months before it generates revenue, freeing up cash for growth and day-to-day operations. And if certain items move slower than expected, stock can be returned or redistributed so capital isn’t trapped in the wrong places.
Growth doesn’t require more working capital
You can take on more jobs, serve more customers, or support additional locations using existing stock, without continually injecting cash into inventory.
Consignment lets your business scale operationally, not just financially.
Modern supply chains often involve multiple layers: suppliers, wholesalers, sub-consignees, and field technicians. This guide explains how multi-entity consignment works and how to manage it effectively.
Suppliers don’t resist consignment because it doesn’t work.
They resist it because they fear:
Those concerns are valid — without the right system.
Consigna removes these risks by giving suppliers:
Real-time visibility into where stock sits
Accepted transfers, so nothing moves without confirmation
Clean reconciliation, with one shared set of numbers
Instead of asking suppliers to “trust you”, you’re offering them a shared system of agreement.
That’s why they say yes.
Use this. It works…
“We’d like to trial consignment using Consigna, a shared system where you keep ownership of the stock, see sales in real time, and approve all movements before they’re final.”
This does three important things:
It reassures them they keep control
It removes fear of disputes
It positions consignment as professional, not informal
You’re not asking for a favour. You’re proposing a better way of working.
Most businesses begin consignment with:
one supplier
one location
one product range
Once the benefits are clear, it becomes the preferred way to operate.