Consignment
The UN Procurement Practitioner's Handbook, produced by the Interagency Procurement Working Group (IAPWG) in 2006 and updated in 2012 suggests that the word ‘consignment’ might mean:
- An agreement with a supplier to stock goods at a customer's location with the goods remaining the property of the supplier until used or sold.
- A shipment that is handed over to a common carrier for transport and delivery.
Safety in the storage and handling of steel and other metal stock, second edition, published by the Health and Safety Executive (HSE) in August 2016, defines consignment as: ‘The point at which delivered goods become the customer’s responsibility. It is the end point of delivery and is likely to be the same point at which financial liability for damage or loss transfers from supplier to customer.’
The Chartered Institute of Procurement & Supply (CIPS) Glossary of procurement terms, defines a consignment as: ‘A specific quantity of goods being carried’. It suggests that a consignment note is: ‘A document describing the contents of a shipment, prepared by a consignor (supplier) and countersigned by the carrier as a proof that the carrier has received the goods for delivery’ and consignment stock is: ‘Inventory owned by the supplier but held at the buyer’s premises.’
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