VendNovation Brings Technology to Vending

The vending industry has traditionally been slow to embrace new technology.  Currently, the increase in fuel costs, increased use of credit cards, accountability issues, vandalism and obesity issues are prompting vend operators to consider the integration of technology to address these issues.

"It is time for vending to catch up with the rest of the world, and they need to catch up quickly," says Cal Bauer, president of HP Vending, and the creative force behind the VendNovation project.

VendNovation is creating an affordable, complete management package for vending machines. This technology company now offers vending machine operators a package with features that have never been bundled before. Real time monitoring of machines, credit card acceptance, route management, machine audits, optional DEX retrieval using PDA's, and other features ideal for use in school environments.

"The product has really evolved from trying to fix a few issues to a complete solution," says Bruce Gilmore, Program Director at VendNovation," and what it boils down to is getting a product to the vending machine operator that is useful and affordable."  When Bauer approached VendNovation, he was looking for a product that focused on simple management of his machines and operational efficiencies.  As the project evolved, he began to concentrate more on the problem of vending machines being taken out of schools. "Obesity is a problem, but vending machines are not the cause." VendNovation's view was that they could put the power to decide what students ate into the hands of parents. VendNovation found a solution in designing an interface that allows parents to go online and manage what their students purchase out of a vending machine.

"Once we built the interface with the machine to control student selection, the rest of the features were a natural progression," says Bruce. The solution includes the VendNovation website, a VendConnect box and a PDA program for inventory and configuration. The vending machine interface is web-based and all that is needed to check on a vending operator's machine is internet access.

The VendConnect module utilizes state of the art encryption to make sure that it's communication to the central server is secure. The module sends "real-time" sales information to the central server where it can be accessed by the vending machine operator.  The information can be displayed using the standard reports or the data can be exported to other applications.  With this type of information, vending machine operators can make better business decisions, analyzing factors that affect their sales such as product mix, machine placement.  In addition, the system can provide alerts when there are stock outs, coin jams, bill jams, temperature issues and possible machine failures.  These alerts, besides appearing on the website, can be forwarded to multiple people by email and/or SMS (cell) messaging services.

VendNovation provides individual access to their website for vending operators, site managers, vend management companies, and users in order to access and update their information. Vending machine operators who use the system can provide access to site managers allowing them to view site sales, commissions, machine level sales, etc.  Because he provides this type of oversight and accountability, Bauer has been able to win accounts from established vending operators and increase his business significantly.

The system can include a stored value management system (debit card) where users such as students, parents of students, and corporate employees can log into individual accounts to review purchases and replenish the stored value amounts on their ID cards.  If desired, parents can set restrictions on what their children can purchase, set dollar limits on purchases, and set time of day restrictions on purchases. Parents, can review sales information at the individual level, reviewing recent purchase activity by their children.

VendNovation provides custom interfaces to allow the system to connect to Point-Of-Sale systems (POS) expanding the capabilities of the system.  With this capability, integration into school reimbursable lunch programs and other non-standard vending environments becomes possible.  There are quite a few POS providers who would like to integrate the vending at their sites into the system and VendNovation provides the technology to accomplish this.

"This technology has leveled the playing field." Cal says. "It has allowed me to go up against the bigger players and offer the customer something other vending machine operators can't."

"There are others doing bits and pieces of what we are doing here in this industry," comments Bruce Gilmore, "but we do some unique things, and are the first to put it all in an affordable package."

VendNovation has been working closely with USI in their integration and vision. "The object for us," says Bruce, "is to stay as close to the vending machine operators as possible so that we are building what they want, not what we think they want. USI has been an integral part in that process."