Automatic Merchandiser

AUG 2013

Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.

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TELEMETRY Online Offline iStockphoto Getting there from here By Doug Haddon, Contributing Editor A vendor's roadmap to technology implementation, part 1. T echnology has become a go-to strategy to drive proftability. Just-in-time inventory offine via SKU-level tracking at the machine level and online via telemetry are used to increase profts and increase effciencies in vending operations. As more and more vendors investigate its implementation, telemetry emerges as an important tool for required data collection. Because telemetry enables operators to wirelessly collect real-time data from each machine on product movement, cash inventory and the machine's physical 16 Automatic Merchandiser condition, operators are able to make adjustments in SKUs and inventory and respond to machine malfunctions far more quickly than with manual data collection methods. However, telemetry is not a "one size fts all" proposition. It should be used only where it makes the most economic sense. This proper targeting of telemetry became obvious to Coca-Cola Bottling Company United (CCBCU) during its recent implementation phase. CCBCU, with 30,000 plus machines over 120 routes spread across Mississippi, South Carolina, Alabama, VendingMarketWatch.com August 2013 Georgia, Louisiana and Tennessee, has deployed telemetry in three of its ten markets, totaling 8,600 machines. Despite what CCBCU describes as huge productivity improvements in terms of cases per fll, stops per day and cases per day for the driver, in its Chattanooga, Tenn., test market, David Sours, director of commercial leadership, discovered that his machines doing less than 50 cases annually were providing a negative return when the cost of the telemetry equipment and monthly charges were considered. As a result, the plan to convert all machines to

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