Automatic Merchandiser

MAY 2015

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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really deters wasted time and keeps fuel costs down. "Our original problem was how to stop drivers from going out of the area they are supposed to be or 'hanging out' to waste time," said Mark. "That behavior stopped once the drivers knew GPS was installed. And it really keeps the fuel effciency in line." Mark can see the trucks on the computer in real-time, which allows him to fnd a vehicle close to a loca- tion that may be having a machine issue. The system also texts and emails Mark, and the other manag- ers, if a vehicle is idling for more than 15 minutes. Mark can then have a conversation with the driver, who might have been stuck in traffc or might need to understand how idling can affect fuel costs. The GPS also alerts the company about speeding violations, which can be reviewed by managers. Higher speeds are less fuel effcient. Untapped OCS lines In the 1990s, Mark's father decided to look at OCS to broaden the compa- ny's offerings. "We've always offered OCS, but we never focused on it," said Mark. "We changed our focus… dedicated some revenue towards it and it has grown signifcantly." OCS now makes up 6 percent of Lathrop Vending's annual revenue. For the past 8 years that segment has seen double digit growth. Mark doesn't credit the increase to any one type of coffee item or added service. It is a combination of all the items including offering single-cup options. "You can't knock single-cup. Everybody seems to be going towards that," Mark said. Although he offers multiple types of coffee equipment, both bulk brewers and single-cup, single-cup has driven the majority of Lathrop Vending's OCS growth as the brand gained popularity. "The Northeast is a strictly Green Mountain area," Mark joked. He makes sure those 16 Automatic Merchandiser VendingMarketWatch.com May 2015 C O V E R S T O R Y Eric Babcock, micro market coordinator, focuses on minimizing fresh food waste, a constant job since it is a top seller in micro markets. Single-cup has been a strong growth segment for Lathrop Vending in recent years.

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