Business Management

How Technology Can Solve the Five Biggest Challenges for European Vending Operators Today

October 8, 2024 | By Cantaloupe, Inc.

How Technology Can Solve the Five Biggest Challenges for European Vending Operators Today

In the fast evolving landscape of vending operations across Europe, operators are increasingly facing a complex array of challenges. From labour shortages to the rising product costs, the industry is at a pivotal point. This blog delves into the most pressing issues that vending operators are grappling with today, offering insights as well as technology solutions already proven effective to navigate these turbulent times.

Staff Shortages: Running as Efficiently as Possible

Challenge

Finding and retaining employees is becoming harder, leaving vending operators with fewer staff to handle machine servicing, inventory management, and other tasks.

Solution

The key is to run as efficiently as possible. Vending management systems (VMS) like Vendmanager allow operators to optimise their service schedules, streamline warehouse picking, and consolidate routes. With real-time data and automation, operators can handle more machines with fewer employees, reducing the need to constantly hire more staff. This results in improved operational efficiency without compromising on service quality.

Rising Costs of Products from Suppliers

Challenge

The constant rise in the cost of consumer packaged goods (CPG) from suppliers makes it difficult for vending operators to maintain their profit margins. Adjusting prices manually across numerous machines can be time-consuming and prone to error, leaving margins vulnerable.

Solution

Tools like Vendmanager Datakey simplify the process of managing price increases. Operators can rely on their route engineers to update machine pricing simply and accurately by simply plugging in Datakey, which syncs with Vendmanager’s mobile app. This allows the back-office team to set new prices, as Datakey automatically updates prices across hundreds of machines in seconds. This rapid response ensures operators can react to rising costs and protect their margins by implementing necessary price changes efficiently.

Preventing Stockouts and Reducing Waste

Challenge

Vending operators often face stockouts, leading to lost sales. Or, they carry too much inventory, which increases waste and costs.

Solution

Implement predictive analytics powered by your VMS. This allows operators to forecast demand based on historical data, local events, or seasonality, ensuring machines are stocked appropriately. Operators can use real-time inventory tracking to know exactly what is needed, reducing the risk of waste.

Managing Theft and Shrinkage

Challenge

Unaccounted stock or missing cash can significantly cut into profits.

Solution

Use telemetry and cashless payment systems to track sales data precisely. These technologies provide visibility into what should be in a machine versus what was sold, minimising discrepancies. Adding remote monitoring for door openings or maintenance alerts can also help mitigate theft, giving operators a better sense of machine activity when they’re not on site.

Enhancing Customer Engagement and Experience

Challenge

Vending machines can feel impersonal, and operators often miss opportunities to engage with consumers directly.

Solution

Leverage interactive touch screens, mobile payment integrations, or multi-item selections in one transaction. By offering more engaging experiences through technology, or even evaluating locations that might be good opportunities to upgrade to Smart Stores or micro markets, operators can present a more modern snack and beverage experience to consumers, including special offers and meal deals — ever popular with site-owners and end-users. This has the additional benefit of increasing your average basket size.

As we continue to explore and solve these challenges, it’s clear that innovation and adaptability will be key for vending operators looking to thrive. By addressing these issues head-on with technology, operators can enhance customer engagement and experience, ultimately paving the way for a more resilient and profitable future in the vending industry. To learn more about Cantaloupe’s Vendmanager solution (or Coffeemanager focused specifically on OCS), provided by SB Software, please visit www.sbsoft.co.uk.

Author

Cantaloupe, Inc.

Cantaloupe, Inc. is a digital payments and software services company that provides end-to-end technology solutions for the self-service economy.

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