The benefits of a consignment stock system for bulk packaging
If bulk packaging is a key area that affects your business, continuity of supply is crucial to avoid disruption to your business. Establishing a consignment stock system can eliminate this risk factor.
Consignment works on a pay-as-you-go basis. What this means is the packaging company sends you their products – bulk bags, for example – which are stored on your business premises, but you are not charged until they are used. Charges are normally based on a monthly inventory check.
Overview of benefits
Cliffe Packaging’s consignment service includes stock management and replenishment, so you never have to worry about running out. There are no concerns with tying up your valuable cashflow in carrying stocks. Moreover, technical support is available to optimise your service. We explore the benefits in further detail below.
Avoids delays and shortens lag times
A major benefit of a consignment stock system is that it avoids delays and loss of business because the packaging is available to you any time you need it. In the long run this is more efficient and economical than placing frequent orders with same-day delivery.
Improves business continuity
Many companies have a disaster recovery plan to ensure that their business remains fully operational in the event of a disaster. Having a consignment arrangement in place reassures your customers that the disaster will not have a knock-on effect on their business. For example, if your packaging partner is unable to supply the bulk packaging required, would this affect delivery of your product to your customer?
Improves customer relationships
With a constant supply of bulk packaging, this ensures that your customers receive their orders on time. This of course is important for building trust and maintaining a good relationship with your customers.
Ask about Cliffe Packaging’s consignment stock system
Cliffe Packaging provides the largest range of bulk packaging products in the UK, from bulk bags to pallet wrapping. We offer a consignment stock service especially for our key account holders. For more information about this, email email@example.com or call 0845 4811 200.