Friday, May 09, 2008

Category Management Is Rewarding

Planet Antares vending operators are gaining more control of their business with the advances in equipment technology and computer software. These technologies are beneficial for you on several points:

a. Routing
b. Service scheduling
c. Accountability
d. Product selection

For most vending operators, accountability at the route and/or machine level is a top priority in selecting state of the art management software.

Usually, the ability to choose a more profitable product mix is further down on the list of most vending operators’ priorities. A lot of education and management time is needed to do this and that is why, it is not a priority on the vendors list. However, it can have a huge and long term impact on an operator’s profitability.

Amongst the operators, only a small percentage of Planet Antares vending operators have begun to fully utilize the latest management tools. Despite this, the first movers or pioneers, including companies of various sizes are revolutionizing the business. Change is occurring on two parallel fronts:

1) Product merchandising
2) Product accountability

In both hardware and software, advances have given Planet Antares vendors the ability to track individual product movement, enabling them to do two things:

1) Account for route driver’s actions on the route
2) Plan their offerings based on more timely and accurate sales history

Product accountability programs have been developed by software companies in response to widespread concern among operators in regard to this issue. As these systems develop, Planet Antares vending operators began to recognize the benefits of line-item sales reports, namely, the ability to use sales history to menu their machines.

A lot of vendors have recognized the benefits of category management but were not ready to implement it. Initially, they allowed drivers to select most of the products for their route and because of this, they hesitated from asking the drivers to change their work habits.

A new management philosophy is reflected by category management and it affected the drivers, the warehouse and the purchasing department. Most of the Planet Antares vending operators found that the concept seemed effective in theory but were still hesitant to change the existing operating procedures.

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