The paperwork problem facing consignment stores:

Item tags are hand-written on paper.  This process requires effort and allows too much room for error.

The item has to be added to the supplier record on a computer or paper.  Even if this is supplier record is electronic, it requires significant manual work.

When sales are made, the total is calculated with a calculator.  This process allows for more manual errors.

When an item sells, the tag has to be put aside.  It is usually stuck to a piece of paper or put in a folder or container.

Someone has to go through each sold item tag, costing time or money.

For each item sold, the person responsible has to find the paperwork for the supplier and mark that item as sold.

The person then has to calculate the commission owing on the item and the amount owing for the item calculated (if commission varies per supplier or item, then the commission rate first has to be checked).

The record of the supplier has to be modified to reflect the new amount owing.

When a supplier requests payment, the staff have to find the supplier record, determine the amount owing, pay the amount, then return the payment owing amount to zero.

If an item has to be refunded to the customer for some reason, the amount owing to the supplier has to be modified by the amount that would have been payable for that item.  If the supplier has already been paid, this could require an entry against the supplier of amount owing.

If the supplier queries a past payment, the staff have to retrieve the paper records, find the supplier page, then find the payment to assess.

A lot of unnecessary work is done, with plenty of room for errors.

If the tax office ever audits the company, an enormous amount of effort is required.

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