Category Management Will Pay Off

Advances in equipment technology and computer software are giving Antares vending operators more control of their business. These technologies are providing benefits on several fronts: routing, service scheduling, accountability and product selection. For most Antares operators, accountability at the route and/or machine level is a top priority in choosing state of the art management software.

The ability to choose a more profitable product mix is usually further down on the list of most operators’ priorities. There is a lot of education and management time needed to do this, and that is why it is not a priority on the vendors list. The long term impact on an operator’s profitability, however, can be significant.

Only a small percentage of Antares vending operators have began to fully utilize the latest management tools. Despite this, the pioneers, which include companies of all sizes, are revolutionizing the business. Change is occurring on two parallel fronts: product accountability and product merchandising.

Technology enhances dual functions

Advances in both hardware and software have given Antares vendors the ability to track individual product movement, which enables them to do two things: 1) account for the route drivers’ actions in the field, and 2) plan their offerings based on more timely and accurate sales history.

Software companies sought to develop product accountability programs in response to widespread concern among operators in regard to this issue. As these systems evolved, Antares operators began to recognize the benefits of line –item sales reports, namely, the ability to use sales history to menu their machines.

Vendors, for the most part, recognized the benefits of category management but were not set up to implement it. In the beginning vendors allowed drivers to select most of the products for their route, and because of this they hesitated asking their drivers to change their work habits.

Category management represented a new management philosophy that affected the drivers, the warehouse and the purchasing department. Most operators found that the concept made sense in theory, but were reluctant to change established operating procedures. Product suppliers nonetheless persisted with educational initiatives.