Question 1

How do I know if my consignment operation is working properly?

Accepted Answer

A well-functioning consignment operation has four characteristics: stock figures at every counter match your system records within an acceptable variance, monthly reconciliation closes within two weeks of month end, consignees submit sales reports on time without chasing, and you can tell at any point which counters are performing and which are not. If any of these are missing, your operation has gaps that will compound as you scale.

Question 2

What is an Operational Readiness Score for a consignment business?

Accepted Answer

An Operational Readiness Score measures how well-equipped a consignment business is to scale without losing control of its stock, reporting, and cash flow. It is scored out of 100, with the Malaysian industry average for consignment suppliers managing 10 or more counters sitting at approximately 61. Scores below 57 indicate significant process or technology gaps that will become critical as the business grows.

Question 3

What are the most common operational gaps in Malaysian consignment businesses?

Accepted Answer

The most common operational gaps in Malaysian consignment businesses are: no real-time visibility of stock at counter level, manual reconciliation that takes weeks instead of days, consignees who submit reports late or inaccurately, no clear accountability structure defining who is responsible for discrepancies, and ERP systems that were implemented before the underlying process was fixed. These gaps are interconnected — fixing one without addressing the others produces limited improvement.

Question 4

How long does it take to fix a broken consignment operation in Malaysia?

Accepted Answer

With the right framework and consistent implementation, a consignment operation can move from heavily manual to systematised within 90 to 180 days. The first 30 days focus on establishing the audit trail and closing protocols. Days 30 to 90 build the accountability structure and SOP layer. Beyond 90 days, technology implementation and optimisation begin. The timeline depends on the number of counters, the complexity of the consignee network, and how quickly the team adopts new processes.

Is your consignment operationactually working?

Is your consignment operation
actually working?