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Intel > Case Studies > Improving Vending Machine Profitability with the Internet of Things (IoT)
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Improving Vending Machine Profitability with the Internet of Things (IoT)

 Improving Vending Machine Profitability with the Internet of Things (IoT) - IoT ONE Case Study
Technology Category
  • Functional Applications - Remote Monitoring & Control Systems
  • Infrastructure as a Service (IaaS)
Applicable Industries
  • Consumer Goods
Applicable Functions
  • Sales & Marketing
Use Cases
  • Remote Asset Management
The Challenge

The vending industry is undergoing a sea change, taking advantage of new technologies to go beyond just delivering snacks to creating a new retail location. Intelligent vending machines can be found in many public locations as well as company facilities, selling different types of goods and services, including even computer accessories, gold bars, tickets, and office supplies. With increasing sophistication, they may also provide time- and location-based data pertaining to sales, inventory, and customer preferences. But at the end of the day, vending machine operators know greater profitability is driven by higher sales and lower operating costs.

About The Customer
The Solution

Addressing these priorities, Intel and ADLINK Technology are delivering products and services based on the Internet of Things (IoT), which refers to billions of Internet-connected devices ranging from industrial sensors to pedometers. This paper details a vending machine management and data analytics solutions that connects a fleet of machines to the cloud-based tools that can help generate more revenue and reduce maintenance effort.

Data Collected
Asset Location, Delivery Time, Inventory Cycle Times, Operating Cost, Sales
Operational Impact
  • [Cost Reduction - Operation]
    Lower Operating Costs
  • [Efficiency Improvement - Operation]
    Simplified Deployment and Operation
  • [Financial Growth - Revenue]
    Increased Sales and new Revenue Streams
Quantitative Benefit
  • Vending machines can also send real-time updates (e.g., supply and operating status) that can be used to optimize delivery schedules and logistics, and improve inventory tracking and control.

  • The cloud makes it easier to implement promotional strategies for increasing transaction size and sales volumes, like gifting, dynamic pricing, vouchers, coupons, and loyalty programs, which is virtually impossible with conventional vending machines.

  • Vending machine operators can generate incremental revenue from product manufacturers who want to show directed advertisements to customers and encourage repurchases by sending coupons to their mobile phones.

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