Over the years, industrial vending machines have gained popularity as an effective inventory control solution for distributors and their customers. Vending machines are ideal for point-of-use inventory control, especially when customers want to reduce the time employees spend obtaining mission-critical supplies. Additionally, inventory control software offers distributors and their customers added visibility into stocked items, helping the customer reduce consumption while simultaneously opening the door to additional spend for the distributor.
However, vending has yet to reach its full potential as a value-added service—often due to item restrictions, expense or lack of transparency on the side of the industrial vending and inventory control software provider.
Distributors looking to invest in industrial vending services for their customers typically experience the greatest outcomes when the provider is upfront about their machines, software and support. Below, we share 10 questions you should ask to ensure you’re entering the best vending provider relationship for your customers.
10 Questions to Ask When Choosing an Industrial Vending and Software Provider
1. Is your vending machine and inventory control software provider independent or owned by a manufacturer or competing distributor?
Inventory management is never one-size-fits-all and distributor autonomy is key to customer-focused vending. Ask yourself this, is your vending and software provider willing and able to grow with you?
It’s one thing to install a vending machine, fill it with product and walk away. It’s another when your provider gives you the freedom to adapt to your customer’s changing supply needs. The trouble that can arise from manufacturer-owned vending machines is that they rarely offer flexibility outside of their products and solutions. Distributors then become dependent on the manufacturer to carry the inventory their customers depend on, putting them at risk of displacement by another competitor. Using machines and software that are owned by a competing distributor also poses a conflict and gives you far less flexibility. Consider using an independent vending provider that offers flexibility and support in the manner that suits your customers’ needs best.
2. How much control do you have over the vending machine?
Some vending programs fail simply due to having the wrong product mix. Customer needs change over time for various reasons — perhaps they changed a tool line or retired older equipment. Maybe their purchasing departments want to explore products that offer better efficiency or cost savings. Or, maybe they would like to pursue greater safety compliance and accountability on their production floors.
Customers that agree to place vending machines in their facilities want more control of their inventory, not less. Choose a vending provider that doesn’t restrict the types of brands or products to be stocked. Reap even more benefits by choosing a provider that offers customizable and flexible product storage and dispensing choices such as helix coil units for vending high-turn and disposable items, locker units that offer check-in/check-out capability for high-dollar, returnable items, drawer and bin cabinets for a variety of size options and dispensing, and combination solutions with barcode and QR scanning capabilities for the most versatility.
View customizable vending solutions from 1sourcevend.
3. Is the vending machine and software easy to use?
Some vending machines and inventory control software are so complicated that it takes users several days of training (which you pay for) and lost production time just to learn how to operate. Vending machines and their software don’t need to be complex to be effective. The more complicated installation and training is, the less likely your customer and their staff will use it. Similarly, if a distributor or customer can’t make updates to users or products in inventory software directly as needed, the more likely the vending solution will be viewed as a hassle.
Simplicity and effectiveness should strike the perfect balance, offering customers a tool that protects against stockouts and ensures workers have the necessary tools and supplies at the point of use. Customers experience the most impact when using software that is intuitive, simple and adaptive to their needs. Look for software that allows for fast updates, flexible user permissions including restrictions, remote inventory-level tracking with features like alerts for low stock and an easy-to-use touchpad interface. Does the software offer automated reports or will you have to create your own.
Read 7 Inventory Management Software Features for the Best Control
4. How difficult is the implementation process for a new vending program?
For those new to vending, you may be curious how time-consuming it is to add industrial vending machines to your inventory management program. Be sure to ask your provider for a detailed implementation plan. Ask questions like:
- What is the timeline for implementation?
- Who sets up the machines and software?
- If network security is an issue, is cellular connectivity available to avoid this?
- Will tracking software work across the entire enterprise?
- Who fills and refills the machine?
- What training is required for distributor reps and their customers?
- What reporting and analytics will be provided and when?
- What are the maintenance requirements?
- What if there is a service issue?
For distributors who already offer vending services but are looking to change providers, you may want to know how difficult it is to switch. For existing vending accounts, it could be challenging switching to a provider that isn’t independently operated. They may limit the products that can be vended and expect your customers to align with their offerings. The independent vending provider ensures your customers can continue to use the products they are accustomed to without interruption to their operations.
5. What is the end-user experience when using vending?
We previously discussed the importance of simple, easy-to-use vending solutions. But what does that mean for your customers and their end-users? For your customers, they should be able to easily navigate the inventory control software, set customizable minimum and maximum stocking levels, create reports for better inventory tracking and quickly add and remove users.
Additionally, their workers should be able to use the machines quickly and confidently. Usability is an important feature of industrial vending. Things to consider when choosing a vending solution include:
- Where can machine(s) be placed? Size and type options.
- Can users see details and visual representations of the item before it is vended?
- Will users access items with a PIN, card-swipe login or other option?
- Does the provider offer flexible user permission and restriction settings? Who can make changes?
- Does the vendor offer bar code or QR code scanning options to track items not in the machine?
- Does the provider offer other storage options like drawer machines or bin storage for a complete inventory solution?
6. Are you limited to where you can place vending machines?
To offer the most benefit to your customers, vending machines must be strategically placed in their facility with production flow in mind. Placing a vending machine at the opposite end of the facility does little to increase worker efficiency. Be sure to find out if your provider’s vending machines are limited to where they can be installed or if they can be placed anywhere in your customer’s facility via wi-fi, cellular network connectivity or hardwire. Often, machines are not allowed in facilities due to connectivity issues so offering a built-in cellular option could open up this option.
7. How much training will sales representatives and end-users need to operate vending machines?
Complicated vending solutions may require hours of training for both the distributor and their customer. While it’s true that some vending providers make it difficult to get a machine and its software up and running, implementing vending does not have to be time-consuming. Talk to your provider and ask how they plan to simplify the process.
Most vending software is cloud-based, allowing distributors and customers to populate content before the machine even arrives, essentially removing any downtime associated with the set-up of a new vending machine. All the distributor/ customer must do then is stock the products they want and review the software capabilities and reporting to use real-time thereafter. Similarly, if the software is easy to use and intuitive, most trainings can be completed in a short, online session. Most importantly, ask if training is included in the cost of the machine or if it will be an additional fee.
8. Are there unexpected fees associated with a new vending program?
When done right, vending and inventory control software can help distributors maximize customer spend, reduce labor costs associated with in-person inventory counts and offer insulation from the competition. Still, many distributors wonder if it’s worth the upfront cost. Some providers may offer an attractive introductory offer then later surprise you with hidden fees like continuation costs or machine rental fees. Before you sign on the dotted line, be sure to ask what is included in the cost of vending startup. Are there software leasing fees, feature add-ons, training costs, delivery charges, operating fees, functionality upgrades of service or installation charges? Look for vending providers that include multiple features with the initial purchase and understand what may be an additional fee later.
9. What kind of data and reports can you expect to receive from your vending software?
Thanks to cloud-based software options, data from several machines can be aggregated and reported in real-time, helping both distributors and their customers track trends and inventory needs more accurately.
Look for inventory control software that is cloud-based and operates in real-time. This allows distributors and their customers to generate reports like employee usage, product pricing, inventory levels and product consumption rates to help customers make more data-driven decisions on inventory needs. Other reports should include:
- Employee usage reports
- PPE usage reports
- Consumption report
10. Does the provider care about your goals?
What are your reasons for providing vending and inventory control services to your customers? The number one reason distributors seek out vending is to gain business and lock in the relationship, but there are others. Do you want to help your customers reduce inventory consumption, increase accountability, improve production flow or get insightful data on their purchases? For a successful vending program, collaboration is key. When considering a vending provider, choose one that will help identify solutions that are right for you and your customers.
Interested in learning more?
1sourcevend’s point-of-use inventory solutions and software were designed by distributors for distributors looking to differentiate themselves from the competition. Learn how we can help you choose the right inventory management software and American-made vending solutions to empower your customers. Request a Demo