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Friday, November 30, 2007

How To Reduce Vending Business Delivery Trips

When you are running a vending business, there will be several issues that need to be effectively handled to reduce costs and increase productivity. One such aspect will be the fuel cost which can be lowered by using less gas. This will be possible with lesser deliveries. Doing this will allow for better use of the driver’s time and provide higher value to your business for the same health care and wages costs.

Most vending operators are concerned about the rising product costs, vending commissions and overall, operational costs. This reduces the potential for substantial profits. If you are one of them, you must start looking for ways to cut down on those rapidly climbing expenses and costs.

It’s important to look at certain “metrics” for your Planet Antares vending machines and plan for the updating of delivery schedules and Plano grams accordingly.

Vending machine technology has witnessed great advances and innovations in the recent past. The modern vending software system allows you to collect and analyze the appropriate metrics in a much simpler way. If you don’t want to spend excessively on buying and installing such software, the task of cost reduction can still be successfully accomplished.

Here are the most important metrics to be analyzed for each vending machine that has been recently serviced and repaired.

a. The number of columns in the vending machine that were empty or in other words, empty.
b. The number of products that have been sold out.
c. The portion or percentage of machine that was empty when the driver arrived at site to refill and service it.
d. The percentage of machine capacity that was filled when the driver or operator left after servicing it
e. The value of vending sales in dollars

The aim is to service the vending equipment when it is completely used or sold out with no products remaining. However, some columns of the machine may remain filled due to the products which are not in high demand by the consumers. You have to ensure that the items which are required by most of the customers are always in stock.

To reduce the impact of rising cost of operations in the vending business as well as aggressive competition, you can greatly benefit from the Planet Antares practice of reducing delivery trips. This not only helps in cost cutting but also in optimal resource utilization as well as enhancing profit margins.

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