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About 80 percent also said they are investing in new technology, indicated in chart 2d. This marks one of the most positive forecasts for technology in recent years. More operators recognize they need to invest in new technology to succeed, and many are doing so despite the unfavorable business climate.
Technology providers have long noted that vending operators have been slow to adopt new tools to enhance the customer’s vending experience and to make managing a vending operation more efficient. When the recession hit, operators looked to reduce costs, not add them.
The economy’s impact on operator willingness to invest in technology is hard to determine. While operators have been slow to invest in technology in recent years, investment has gradually increased, surveys have consistently indicated. The most likely explanation is that investment has grown as operators have become more knowledgeable about the technology.
Another reason is that over the years, a group of recognized technology providers has emerged.
Operators interviewed about technology said they realize that benefits of remote machine monitoring and cashless transaction capability, the two leading areas of investment, will allow them to operate more profitably.
The two technologies are closely related, since the hardware required for remote machine monitoring oftentimes supports cashless transactions, and vice versa.
Remote machine monitoring (RMM) in particular has been recognized as a technology needed to support pre-kitting routes. Many operators have been able to improve route productivity by pre-kitting routes in the warehouse.
Cashless vending was cited as the most common technology operators are adding.
The survey did not distinguish between “open” and “closed” cashless systems. Industry observers have long noted that “open” cashless systems will give the vending industry the ability to charge higher prices and be more competitive with other retail outlets.
While “open” cashless installations have increased in recent years, the “closed” systems, which allow the location to reward employees with purchase money, have also increased.
