What are the two correct actions you need to set up to use consignment inventory for suppliers?

To implement consignment inventory for suppliers effectively, creating info records and billing materials from withdrawals is essential. Info records play a crucial role in managing the information associated with materials supplied by vendors, including pricing, lead times, and other vital data necessary for procurement processes. They provide a reference point to track how much inventory is being held on consignment and help in managing supplier relationships.

Billing materials from withdrawals is equally important, as it allows the organization to account for inventory that it has physically withdrawn while only paying the supplier once the inventory is actually used. This aligns with the concept of consignment inventory, where the supplier retains ownership of the goods until they are consumed by the buyer. Therefore, these two actions create the necessary foundation for managing consignment inventory effectively in the procurement process.

Other options involve steps that do not directly relate to the mechanics of setting up a consignment inventory system. For example, monitoring supplier quality and adjusting prices could be part of supplier management but is not a prerequisite for setting up a consignment model. Similarly, limiting access to inventory data or requiring upfront payment does not align with the flexible, ownership-retaining nature of consignment inventory.