Consigned Inventory is most commonly used in the food and beverage industry and refers to any inventory held by one party but owned by a different party. This is most commonly the relationship between a supplier and a distributor. The supplier will still own the inventory when it is shipped and stored, but once the distributor/vendor consumes it, the ownership typically shifts. Typically.

Fun Fact! The term “consigned” relates to Victor Lustig, who is most notable for fraudulently selling the Eiffel Tower. Twice. You see, during the sale, a fake bill of sale was drawn up that both Lustig and the victim signed. When the victim pursued legal recompense, the police couldn’t pin Lustig for the crime because even though it was a fake bill of sale, the signature was authentic. They said his schemes were at an end because it had been “con-signed.”