Today’s Market Place Calls for Change

Most Antares operators have agreed that the vending business has changed in such a way that better control of inventory, in conjunction with more complete accountability, are needed. In the past, gross profit margins were high enough to offset both operating inefficiencies and pilferage.

Category management produces savings by reducing the number of stock keeping units (SKU) inventory. In addition to this, it also yields higher sales due to better production selection choices and more frequent product rotations.

Key development: line item tracking

Several Antares operators noted that because line item accounting creates the ability to manage product categories more efficiently, it makes sense to take advantage of this opportunity. Teaching drivers how to use handheld computers may take time, but the data that is collected can be eventually be used to manage the product selection process better.

Once the operating systems are set up to support a category management program in your Antares vending business, there are usually some ongoing tasks needed to maintain the program. Most agreed that these tasks are not cumbersome. Someone in a managerial capacity must analyze data regularly and make product selections. The amount of support work will vary depending on how detailed the planograms are. Planograms are usually organized according to the location type (office, factories) and/or machine configuration.

Ongoing support functions will vary

The amount of support work will depend on how frequently the planogram changes and also how much of the planogram changes. “Core” products do not change, whereas “cycle” products do. Most planograms are on a monthly to quarterly basis.

Another ongoing support task involves inputting data into the system and merging it with outside data. Some Antares operators have found databases provided by product suppliers helpful. Some rely strictly on internal data, while others receive regular updates from their computer software company.

Most operators choose products based on sales, not profitability. Even though there are some systems that provide profit information on individual products, this aspect of the system has been more challenging.