Polish company Netwise S.A. joins the collana Group
Home / Polish company Netwise S.A. joins the collana Group The
Paul M.
13 August 2026
Companies and manufacturers often face a balancing act: on the one hand, there must be sufficient space for goods, spare parts or frequently required components. On the other hand, storage costs and risk should be kept to a minimum. Building their own warehouse for goods or spare parts is therefore not always cost-effective.
A modern alternative is the Consignment stock – a form of warehousing in which the goods are stored at the customer’s premises but remain the property of the supplier until they are collected. Sounds handy? It often is – but not always.
In this article, we’ll outline the key advantages and disadvantages of a consignment warehouse, explain when this type of warehouse is worthwhile, and offer tips on how to set up a consignment warehouse successfully.
A consignment warehouse is a specialised warehouse set up by the supplier in the immediate vicinity – or even directly on the premises – of the customer, and operated at the supplier’s own expense.
The goods in storage remain the property of the supplier until they are collected, payment is made or an agreed period expires. As a rule, a retention of title applies, meaning that ownership is only transferred to the customer upon collection.
As soon as a customer removes items from the warehouse, the usage is recorded and the delivery company automatically issues an invoice.
In this context, you will often come across the following terms in practice:
Term | Explanation |
|---|---|
Consignor, Consignor (female) | This is the term used to refer to the supplier who provides the consignment stock. |
Consignor, Consignor (female) | The customer or the buyer who removes goods from the consignment stock. |
Konsiware | Term used to describe goods in a consignment warehouse – derived from „Konsilager“. |
Automated conveyor systems are a good example of flexible warehouse automation – they are available in various designs and can be perfectly adapted to your warehouse system:
Belt and roller conveyors: Ideal for transporting pallets, cartons or containers. The modular systems are easy to integrate and ensure a smooth flow of materials.
Vertical conveyor systems: Connect different levels of your warehouse – from floor to ceiling. This allows you to make efficient use of your entire storage area without having to extend the building.
A consignment warehouse can offer businesses many advantages – such as reduced storage costs, greater flexibility and improved availability of goods. However, potential drawbacks should also be taken into account when making a decision. Here is an overview of the key pros and cons:
There are also specific advantages and disadvantages for the supplier – that is, the operator of the consignment warehouse.
A consignment warehouse can be a sensible solution for both large corporations and small and medium-sized enterprises (SMEs) – particularly where the storage of parts or products needs to be flexible, low-risk and without the need for significant initial investment.
This type of warehousing is particularly attractive for businesses that deal in perishable goods. In such cases, the risk of wastage and the costs of replacement parts can largely be passed on to the warehouse operator. A consignment warehouse also offers a high degree of flexibility for seasonal items that are only required during specific time periods. The same applies to companies where the immediate availability of parts and materials is crucial – or where consumption is difficult to predict.
SMEs in particular benefit from the fact that they do not need to set up their own storage facilities or invest in additional staff. Instead, projects can be implemented more quickly, whilst the company can continue to focus on its core business.
Furthermore, there are two other scenarios in which a consignment warehouse can be beneficial: manufacturing companies with multiple suppliers can create an effective supplier logistics centre by using a central consignment warehouse. And companies operating internationally – particularly those with customers in other EU countries – also benefit from shorter delivery routes and reduced customs formalities.
A supplier logistics centre is a shared consignment warehouse operated by several suppliers – specifically for a single company or group of companies.
The benefit for the recipient company is clear: it receives all the parts and materials required for production from a single central location, which considerably simplifies logistics, planning and supply security. The suppliers involved, in turn, may be able to share storage costs and infrastructure expenditure, thereby increasing cost-effectiveness for all parties involved.
A consignment warehouse within the EU can be a sensible solution for companies operating internationally – for example, to enable them to deliver goods or spare parts to overseas customers more quickly.
Although deliveries within the EU are, in principle, duty-free, VAT is payable on deliveries to other Member States. The tax treatment of consignment stocks is governed by law – in Germany, for example, by Section 6b of the VAT Act (UStG) – and may be supplemented by further regulations depending on the EU country concerned.
Important: The question of who bears the costs involved in a consignment warehouse abroad, and how the transfer of ownership and taxation work, is often complex. Companies should therefore be sure to seek advice from a tax expert or tax adviser before setting up a cross-border consignment warehouse.
Would you like to have your goods managed via a consignment warehouse in future? If so, this step-by-step guide will help you take a structured approach – from selecting products to negotiating with suppliers.
Before entering into discussions with suppliers, you should clearly define which goods are to be stored in the consignment warehouse. This decision will affect the space required, the logistical effort involved and the service requirements. A carefully considered selection is crucial, particularly for sensitive or seasonal items.
An efficiently managed consignment warehouse is only possible with the appropriate IT support. Companies with their own ERP system can often connect this to the supplier’s system via interfaces. For SMEs, we recommend using a cloud-based SaaS solution, which can be implemented with minimal effort. One such solution – such as, for example,. collana diva now – not only enables the monitoring of stock levels and processes, but can also automatically trigger the restocking process.
In the next phase, the aim is to approach initial suppliers and discuss key points: capacity, delivery arrangements, prices, contract duration, terms and conditions, etc. Ask for specific quotes so that you can assess the extent to which they meet your requirements – many details can also be settled contractually at a later stage.
You should then systematically compare the quotes you have obtained. A cost-benefit analysis can help you identify the most cost-effective provider. If you have a little more time to spare, you can monitor prices regularly and use this information to negotiate even better terms. Once you have also critically assessed the level of service on offer, you can select several delivery companies to proceed with to the next stage.
Offers are not yet set in stone. Use the information you have gathered to negotiate better terms during your final discussions with suppliers. This is where your negotiating skills will come in handy – for example, when it comes to prices, contract terms or service levels.
Once the contract has been finalised, implementation begins. The consignment goods should be identified as such in the system – particularly if you also operate your own warehouse. Clear labelling ensures that you can track where each item is stored at any time, in real time.
Even after signing a contract, you should regularly check whether price adjustments are necessary or possible. An existing contract does not protect you from unexpected price rises. You should therefore continue to keep an eye on offers from competitors – this will ensure you secure fair terms in the long term.
A consignment warehouse saves you from having to invest in your own warehouse – but digital process management remains essential. After all, only with the right IT infrastructure can you reliably keep track of orders, goods flows, production and business processes.
You should not relinquish control over this – it is crucial to the efficiency, responsiveness and financial success of your business. Modern ERP software provides you with the data and analyses you need in real time to make informed decisions and continuously improve processes.
However, a traditional on-premises solution does not always prove cost-effective, particularly for small and medium-sized enterprises.
You have already read that warehouse automation makes processes more efficient. But what about the costs? This section looks at how warehouse automation also pays off financially for your business – and what role ROI (return on investment) plays in this.
Home / Polish company Netwise S.A. joins the collana Group The
The collana Group has launched the video podcast *CoreShift by collana*.
The Collana Group has reached a milestone that few others have
The cloud-based SaaS ERP collana diva now Here’s the smart alternative: quick to set up, easy to use and ideal for integrating a consignment warehouse. This means you can get started without major IT effort – whilst at the same time optimising your goods flows, automating processes and managing operations based on data.