Improving Vending Machine Profitability with the Internet of Things (IoT)
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.
IntelIntel designs, manufactures, and sells integrated digital technology platforms worldwide. The company's platforms are used in various computing applications comprising notebooks, desktops, servers, tablets, smartphones, wireless and wired connectivity products, Wearables, transportation systems, and retail devices. It offers microprocessors that processes system data and controls other devices in the system; chipsets, which send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive or solid-state drive, and optical disc drives; system-on-chip products that integrate its central processing units with other system components onto a single chip; and wired network connectivity products.Featured Subsidiaries/ Business Units:- Intel Inside- Intel Data Center Manager (DCM)- Saffron Technology- Wind River
Construction & Buildings
- CONNECTIVITY PROTOCOLS
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
- SOLUTION TYPE
- SOLUTION MATURITY
Emerging (technology has been on the market for > 2 years)
- OPERATIONAL IMPACT
Impact #1 [Cost Reduction - Operation]
Lower Operating Costs
Impact #2 [Efficiency Improvement - Operation]
Simplified Deployment and Operation
Impact #3 [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.
- USE CASES
Process Control & OptimizationProcess control and optimization (PCO) is the discipline of adjusting a process to maintain or optimize a specified set of parameters without violating process constraints. The PCO market is being driven by rising demand for energy-efficient production processes, safety and security concerns, and the development of IoT systems that can reliably predict process deviations. Fundamentally, there are three parameters that can be adjusted to affect optimal performance. - Equipment optimization: The first step is to verify that the existing equipment is being used to its fullest advantage by examining operating data to identify equipment bottlenecks. - Operating procedures: Operating procedures may vary widely from person-to-person or from shift-to-shift. Automation of the plant can help significantly. But automation will be of no help if the operators take control and run the plant in manual. - Control optimization: In a typical processing plant, such as a chemical plant or oil refinery, there are hundreds or even thousands of control loops. Each control loop is responsible for controlling one part of the process, such as maintaining a temperature, level, or flow. If the control loop is not properly designed and tuned, the process runs below its optimum. The process will be more expensive to operate, and equipment will wear out prematurely. For each control loop to run optimally, identification of sensor, valve, and tuning problems is important. It has been well documented that over 35% of control loops typically have problems. The process of continuously monitoring and optimizing the entire plant is sometimes called performance supervision.