Tuesday, September 26, 2006

Category Management to Build Vending

Category management, computerized route accountability and point of sale promotions are all current buzz words in the vending trade. You can use all these tools to build your Antares vending business. The use of technology can help you to remain competitive. You might find that technology will enables you to service small accounts profitably and to take on accounts that vendors would pass by.

How vending compares to c-stores

Category management is a system that simplifies product selection at the route and warehouse levels. It would enable the Antares operator to control the machine menu. To do this, the operator must have a way to track individual product sales accurately. Investing in handhelds computers is something that you would need to do.

Vending and c-stores are both retail outlets with limited selling space. In both, a product is sold, but more importantly, a convenience. The vending market has far more limited space and that space has to be treated like gold.

Key to success: supplier support

A major difference between the two channels was in supplier support. A lot of Antares vending operators have complained about suppliers’ fill rates and pull errors.

Handhelds: Better inventory control

The initial training may be difficult for the driver. One downside is that if a handheld is not working, a manager has to ride the route to do the old manual system. But the benefits are numerous. Besides better inventory control in your Antares business, the handheld system would allow you to eliminate a warehouse position.

Spiral-level data invaluable

The information that you can get from handhelds is invaluable. With this information you can tell the manufacturer exactly how many units have moved in any given time period and you can also show the product suppliers how their products moves in comparison to competing products.

Category management is a key factor in your Antares operation’s choice of product. You can create a planogram for every snack/drink machine configuration for every location type. A few slots per machine are left up to the discretion of the route driver, who can choose between a few specific items per category.

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