Advantages of a Vendor-Managed Inventory Program


As you may know, Ross Optical recently added a new inventory solution. Called vendor-managed or consignment inventory, this program gives customers on-demand access to our more than 1000 catalog optical components, as well as custom optics and assemblies.

How it works: Ross Optical places optics and assembly stock at customers' sites, and customers pay for the parts only when they use them.

Good fit for: Customers who require regular, high-volume production of standard optics such as micro optics, aspheres, and prisms; custom OEM optics; or assemblies.


Vendor managed inventory benefits include the following:

  • Shorter lead times – Because inventory is available on-demand at the customer’s site, the time spent waiting for product deliveries is significantly reduced.
  • Fewer stock-outs – Multi-year studies have shows that vendor-managed inventory reduces stock-outs by up to 45 percent. By shifting inventory servicing responsibilities further up the supply chain, suppliers such as Ross Optical can make sure buyers have stock of what they need when they need it.
  • Reduced supply chain costs – The vendor-managed business model saves carrying costs by minimizing excess inventory as well as the number of product shipments needed.

If you have questions about our vendor-managed inventory program or any of our other LEAN practices, contact us.

Or, download our guide: Inventory Solutions for Supply Chain Process Improvement.

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