How to maintain a Consignment Inventory in the most efficient manner inside SAP®

And why it’s all about the processes and tools.
How to maintain a Consignment Inventory

Managing consignment inventories efficiently across vast geographical areas poses challenges when processes lack efficiency. Many companies rely on manual administrative tasks in their consignment processes. For example, when a sales rep or a hospital staff member uses a consigned product, companies frequently document this consumption through tools like emails, spreadsheets, calls, or even pen and paper. This outdated approach wastes crucial time, data, and resources.

Why is it so hard to design efficient consignment processes? Because:

1. Processes involve tasks across different business areas that need simultaneous completion:

The Products

  • Ensuring right products are selected to be stored in consignment
  • Ensuring consigned products are in perfect condition, including their expiry dates, packaging, and other product-relevant characteristics.

The Stock Levels

  • Requesting initial consignment fill-ups/extensions
  • Ensuring customers always have the right amount of stock on hand
  • Replenishing consumed consigned product immediately
  • Performing cycle counts

The Compliance

  • Continuously monitoring expiry dates on consigned inventories
  • Carrying out product recalls on consigned inventories by sorting out serial/batch/lot numbers

The Sales Efficiency

  • Ensuring invoice is issued as soon as product is consumed
  • Performance checking of consigned inventory, i.e. quick vs. slow turners, regularly

2. Business areas require means to communicate and establish connections with one another

Consignment inventory typically interlinks with multiple departments:

  • It strongly links with the warehouse from where products are sent.
  • It links with accounting to ensure invoices are issued as consumption is recorded.
  • It links with customer service where consignment fulfilment and customer requests are handled.
  • It links with Sales Reps, the first point of contact for customers’ consignment inventory needs.
  • It also links with regulatory affairs where audits and recalls are traced.
  • It links with product management and sales, where product lifecycles are analyzed and optimized.

So, what is the solution?

How can you bring these different areas under one umbrella?

By incorporating the right process with the right tool

Focusing on process automation simplifies life when you have the right process in place. In this streamlined cycle, a Sales Rep or the back office initiates the initial consignment fill-up request. Then, the warehousing team promptly ships the goods to the customer upon receiving this request. Subsequently, recording consumption in the system through a mobile app or barcode scanner triggers an invoice and a replenishment order. This efficient cycle then repeats seamlessly.

This consignment cycle is the most effective way to boost your consignment turnaround times!

consignment process animation

And, what constitutes the right tool?

Your tool should have enterprise-wide accessibility. It functions on a mobile basis to connect sales reps and other departments like accounting, warehouse, and the back office. It must include features like mobile consumption recording and the ability to track and trace regulatory information such as batch, lot, serial numbers, and shelf life.

Dear SAP® users, we have you covered!

mymediset, the most widely used SAP® add-on solution for consignment inventory management, connects enterprise-wide and is specifically designed to cover all requirements!

mymediset continuously transmits real-time data using a backend and mobile solution. It also enhances efficiency in consignment inventory management through using a wide range of features. With data originating from a single source – your SAP® system, mymediset ensures unified data integrity, whether using the mobile app or the backend solution. There is no data replication or need for additional software.

Curious to know more? Speak to one of our experts now. Let mymediset transform your consignment inventory management inside SAP®.

Ready to speed up and simplify your medical device management?

Download the factsheet and speak to one of our experts now!

Related articles
Eco-Conscious Strategies: Rethinking the Environmental Impact of Medical Devices

Eco-Conscious Strategies: Rethinking the Environmental Impact of Medical Devices

z Listen to this post i Download PDF The often-overlooked environmental impact poses significant challenges in the intricate landscape of the medical device industry. The transportation of medical devices alone contributes to 8.5% of global greenhouse gas emissions in...

Book a demo with one of our experts

Tell us a little bit about yourself