Consignment Inventory Software: How Consigned Stock Works in MedTech
In medtech, consigned stock sits at the hospital long before anyone pays for it. Learn how consignment inventory works, why the ERP misses it, and how Ventory tracks consigned implants and loaner kits to cut excess stock by 35%.
With consignment, the stock is on site long before anyone pays for it.
Consignment is the default model for medical devices. Implants, instruments and loaner kits sit at the hospital, owned by the manufacturer, and are only invoiced when they are used. It suits the clinical reality, where a surgeon needs the right size on the shelf at the moment of the procedure. It also creates one of the hardest inventory problems in the field.
This guide explains how consignment inventory works, why standard systems lose track of it, and how Ventory keeps consigned stock accurate from warehouse to hospital shelf.
What is consignment inventory?
Consignment inventory is stock that physically sits with the customer but stays owned by the supplier until it is consumed. In medtech that means consigned implants and instrument sets stored at the hospital, and loaner kits that travel in for a specific case and travel back out. Ownership and location are separated, which is exactly what makes it hard to track.
Why consigned stock is so hard to control
The challenge is visibility across two parties and many locations.
- Stock is held in dozens or hundreds of hospitals, not one warehouse.
- Expiry matters. A sterile implant past its date cannot be used and is a write-off.
- Usage drives the invoice, so a missed scan is missed revenue.
- Loaner kits move constantly, and a kit short of one component delays a case.
Get this wrong and you carry too much stock to be safe, tie up cash in implants that expire, and lose revenue on items used but never recorded.
Why the ERP misses it
The ERP knows what the manufacturer owns and what it shipped. It does not know which shelf in which hospital holds which lot, or which loaner kit is mid-transit. Consigned stock lives outside the four walls, across customer sites, which is precisely the inventory a field layer is built to see.
How Ventory tracks consigned stock
Ventory adds the field layer on top of the ERP and keeps consigned inventory accurate in real time:
- Stock by location and owner, so every hospital shelf has a live, accurate record.
- Containers and loaner kits tracked as units. Select a kit and its full contents move together, with parent-child relationships for nested sets.
- A partner portal so the parties handling the stock can act in the same system.
- Expiry management, with triggers that flag stock before it expires, so implants are used or rotated in time.
- Scan-based usage on the mobile app, so a consumed item is recorded at the point of use and feeds the invoice.
The result: -35% reduction in excess stock and 99.76% rolling stock accuracy, with consigned implants and kits accounted for wherever they sit.
Getting started
- Map your consignment locations and the stock held at each.
- Set up containers and loaner kits as tracked units.
- Turn on expiry triggers for dated stock.
- Record usage by scanning, so consumption and invoicing line up.
- Review excess and expiry write-offs after the first quarter.
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Frequently asked questions
What is consignment inventory?
It is stock that physically sits with the customer but remains owned by the supplier until it is used. In medtech this includes consigned implants and loaner kits held at hospitals.
Why is consigned stock hard to manage?
It is spread across many hospital sites, ownership and location are separated, expiry dates matter, and usage drives the invoice. A single missed scan can mean a write-off or lost revenue.
Why does the ERP struggle with consignment?
The ERP tracks ownership and shipments but not the live location of each lot across customer sites. Consigned stock sits outside the warehouse, which is where a field inventory layer adds the missing visibility.
How does Ventory handle expiry?
Ventory tracks expiry dates and can trigger alerts before stock expires, so dated implants are used or rotated in time rather than written off.
About Ventory
Ventory is the field inventory layer between your ERP or WMS and your field teams. It gives leaders total control and visibility of inventory outside the warehouse: in vans, forward stocking locations, consignment sites and hospitals. Ventory is ERP-agnostic and trusted by teams at Microsoft, Delaware, Zebra Technologies and DHL. ISO 27001 certified, SOC 2 compliant, GDPR. 99.76% rolling stock accuracy. Live in 48 hours. See how it works →