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Supplier Managed Inventory

Consignment inventory (CSI) references inventory that is physically on our premises but not fiscally on our books. It is still owned by and sometimes managed by the vendor. Hence, this inventory is sometimes referred to as vendor managed inventory (VMI). One of our large computer clients has their entire supply base own and manage component inventory until it is picked from flow racks along their assembly line. When components are retrieved from the flow racks they become our client’s property. One of our mining clients houses large quantities of service parts maintenance inventory owned by the vendor up until the point it is picked by our client and placed on a piece of equipment.

 

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