CASE STUDY Vending
A national vending machine distributor
For confidentiality, we have not identified our client or the end user referred to below. However if you wish to make contact with our client to obtain further information, please let us know and we will endeavour to obtain the necessary permission.
The Customer’s Requirements
Our client, a vending machine distributor had a contract to supply Bean to Cup Machines to a national retail chain for their in store restaurants and coffee bars.
The machine maintenance operatives within the stores had been using a range of hygiene and cleaning products provided by the machine distributor and also periodically the cleaning products designated for general in store use, neither of which performed satisfactorily. The use of these in store products was generally driven by either the mistaken belief that this would reduce their maintenance costs or the periodic unavailability of the recommended products. A further problem was created by the lack of an effective packaging solution for all of the various hygiene and cleaning products which needed to be used, resulting in some products not being readily available for use where and when required.
This inappropriate hygiene and cleaning regime led to on average two to three blockages on each machine per week and for both the machine distributor and the retailer this resulted in the following significant operational problems:
- Increased Service Costs – Each of these avoidable machine breakdowns incurred a service call out charge of £75.00, which under the supplier agreement had to be paid by the retail chain. It is also important to note that under different supplier agreements this responsibility can reside with the machine distributor but it is not uncommon that the lack of clarity as to the true responsibility for the breakdown can lead to a dispute between the parties as to who should incur the cost.
- Reduced Revenues – When a breakdown occurred the store had to wait for a engineer to come out and repair the machine. In the meantime the coffee bars at the front of store would immediately lose income from the sale of coffee and complimentary products such as cakes and sandwiches. In the restaurant area where there was more than one machine available, a machine breakdown would result in long queues which caused some customers to look for alternative places to eat and drink. The loss of sales was estimated at £100/hr per machine.
- Relationship of Distributor & their Client – The high levels of machine breakdowns were impacting the reputation of the distributor and their machines as well as putting an unnecessary burden on the distributors service team. In addition whilst the distributor was entitled to recover the service costs, this situation created friction with the client and over the longer term this was identified as a key issue affecting the future continuity of the distributors contract.
- Dispensed Product Quality -The ineffective hygiene and cleaning regimes was causing a variability in the quality of the dispensed products, which not only impacted purchasers willingness to regularly buy the product but also the reputation of the distributor and retailer.
The Bioguard Solution!
By utilising selected products from our established range together with certain customised products, we were able to provide our client a truly effective solution to their hygiene and cleaning requirements. We also provided a customised packaging solution which put together all of the products required in an easy to use 2 months supply kit.
After extensive trials and operational experience with the use of our hygiene and cleaning kits we were able to identify the following significant operational performance benefits:
- Reduced Servicing Costs — By eliminating unnecessary machine breakdowns, savings estimated at £ 112,000 per annum.
- Increased Revenues — The reduction in the machine breakdowns resulted in increased income at the coffee bars and restaurant areas estimated at £ 200,000 per annum.
- Dispensed Product Quality — The use of our products assisted in ensuring the ongoing quality of the dispensed product. Estimated financial benefit – incalculable.
- Increased Machine Reliability — The use of our kit s greatly improved machine reliability, which significantly assisted in re-establishing the reputation/brand of the distributor. Estimated financial benefit – incalculable.
- Cleaning & Hygiene Regime Monitoring — By providing a kit that provided a two monthly hygiene & cleaning supply the retail chain and the machine distributor were easily able to identify the cafes / restaurants and stores that were not following the recommended cleaning regime. From this they were able to proactively put in place a procedure to ensure that the recommended cleaning and hygiene regime was followed so ensuring they continued to achieve the benefits detailed above.
Our ongoing policy of product innovation while working closely with leading product users has enabled us to develop our class leading product range which meets or exceeds most of our customers needs. However where special site conditions require we can develop the necessary customised solutions.
To learn more about this case study, or how our products could help your business please contact us.