Full Service Vending Management
The consumer will leverage the positive brand experience, through vending purchases, to home consumption.
The Client Change Rationale
The company operates 12000 Full Service Vending machines in the market and is having problem with operating them profitably.
The company wants to align its vending organization to market reality at same time they maximize profitable growth vending opportunities. Furthermore, they want to develop organizational capabilities of their vending operation enabling them to expand their brand product offer in their vending machines parallel with reinforcing their equipment control to improve their asset utilization.
Operating vending machines is not an easy business due to high capital investment and the delivery revenue drop size is not always sufficient to justify the investment. However, doing it right then it can be very profitable business.
An effective Full Service Vending business concept is about:
- Develop cultures and habits: The opportunity is to create and develop culture and habits in the away from home market segments that drive continual consumption. Consequently, the habits are converted into the home market segments.
- Brand loyalty: Operating and doing business with high number of outlets that are “own company shops” and not-visible to the trade generates competitive advantages resulting in higher brand loyalty. Generally, it is difficult for the competitors to understand and estimate the size of the B2B business.
- Profit: Doing it right every customer in service can produce great profits!
Full Service vending is not doing business as usual, and requires superior planning due to the low revenues and high service requirements per vendor.
Full Service Vending is about managing multiple numbers of vendors, with very low drop sizes. To justify the low revenues per vendor a proactive service system must be designed and developed – making every vendor in service profitable.
Develop a transformational master plan with the objective to make the Full Service Vending business profitable.
TPC-Consulting Core Modules and Content
- Implementation of standards for minimum efficiency and effectiveness
- Introduce Business Planning for all individual vending operations
- Underperformance calls for immediate action to get performance in line
- Regular information on low performing equipment
- Optimize profitable system growth through improved assets utilization
- Monthly performance review to secure delivery of the business plan
The Full Service Vending business is now profitable on persistent basis, through first year changes which resulted in; 10% vending volume throughput increase, 4% increase in average vending price and 18% reduction in operations cost (employees and FSV delivery vans).