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 "We break technologyinto three stages implementation down telemetry changed. "Our strategy now is to cover 90 percent of our volume, so that looks like about 60 percent of our equipment," stated Sours. Performance dictates technology So what does this tell us? Not all full line operators have CCBCU's volume or have the luxury of being solely in the drinks market, but all can be smart about deploying technology to gain the best return on investment. Operators who have to contend with snack food and coffee machines need to understand how they are currently performing and then factor in how technology might improve things. Times are tough, and most don't have the budget to overhaul technology across their entire system. Even if operators have funding today, they might not be able to deploy the technology because of their existing infrastructure. That's because telemetry builds on other core technology and processes. Before operators can take machines online, the core of their business needs to be healthy. And they need to have other processes and technology already in place. In short, taking machines online requires a carefully considered journey from here to there, best traveled in phases. Phase 1: Putting The Traditional Operation In Order Moving into technology-based forecasting and telemetry works best — pre-implementation, implementation and post-implementation. " - Cliff Fisher, Easitrax Sales Manager, MEI. To hear more go to: www.vendingmarketwatch.com/10979898 when operators understand the dynamics of the current operation, they've put the proper controls in place and they've documented practices and procedures regarding equipment, inventory and cash. Using vending management software (VMS) to capture this information will lay the groundwork for a more disciplined operation with good machine, inventory and truck accountability. It will establish a baseline for identifying where digital data exchange (DEX) and telemetry might pay off. Advanced systems offer a roadmap to follow in this progression. For some, engaging in manual best practices based on recorded data for part or all of the organization may be all that is needed to secure a proftable outcome. However, it's critical that data is accurate. Initially, this data collection is highly dependent on the motivation and capabilities of the route drivers, warehouse clerks and supervisors. Understanding the strengths and weaknesses of the team will "There is one key when trying to implement technology — making sure that whatever technology you're implementing is future ready. " - Poch Ceballos, online solutions product manager, Crane Merchandising Systems. To hear more go to: www.vendingmarketwatch.com/10979901 August 2013 go a long way in the transition to a technology-driven operation. Encouraging an environment that rewards accurate recording and sets penalties for inaccurate recording of truck, warehouse and machine inventories will help establish a precedent for future processes. Migrating to SKU-level management at the machine level can be challenging. Leveraging DEX is the ideal way to achieve this objective. The importance of ensuring that machines are confgured at the selection level with accurate column or row capacities must be achieved in order to be successful. "You want to make sure all the data is clean. That's been the biggest obstacle … and that is the biggest time-consuming aspect of the whole process," said Scott Meskin, president of Black Tie Services, who is in the process of converting 10 percent of his machines to telemetry. Although a signifcant process to secure clean data, once operators succeed, it's possible to get accurate forecasts for route slips and avoid excess truck and warehouse inventory. Phase 2: Data Collection Via DEX The next progression in a technology implementation is to move into SKU-based product management and leverage DEX. While we talk about processes above, it is critical that the business move to SKU in the warehouse, the truck and the VendingMarketWatch.com Automatic Merchandiser 17

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