The shipped inventory arrives at its destination, either the customer’s receiving dock or a distribution warehouse in close proximity to the customer (step 4 in Consignment Inventory Business Flow). When the customer receives the inventory and notifies the supplier of its receipt, the inventory is then transferred from in-transit to consignment. Likewise, when an external warehouse sends inventory to the customer, it sends the supplier the information to move the inventory from its in-transit location to its consignment location.