Selecting a Mix that will Drive the Profits of your Antares Business

You always need to be sure that you are offering the most successful product mix in your Antares business. If subordinates are responsible for filling the machines, you need to make sure that they are placing the “must have” items in every machine. The products also need to be rotated frequently since you will be offering a variety of products. All this can be accomplished by category management.

Category management is a system that simplifies product selection at the route and warehouse levels, and also enables the operator to control the machine menu. There are some products that only turn quarterly, and this costs the company in terms of tying up warehouse space. These are just some of the reasons that some experienced Antares vending operators have been implementing category management.

There are some operators that resist using category management because it requires a different way of selecting products from the traditional practice. Previously product selection was based on the hunches of the owner or the route driver. The problem with this selection process is that it is actually costing the operators more in sales and profits. Category management should be a preferred selection choice for Antares vending operators as well as other operators.

Operations that implement category management reap significant savings. The savings come in three areas:

· Increased profitability from higher location sales.

· Reduced cash investment in inventory from a reduced number of stock keeping units in the warehouse.

· Improved route and warehouse labor efficiency and productivity.

Higher sales for your Antares vending business will be achieved by selecting the fastest turning products. Reduced investment is also achieved by inventorying fewer, yet faster turning products. A 40 % reduction in inventory will be achievable in your Antares business, once category management is implemented.

By having fewer products to manage, it means fewer inventories and thus less chance for error. Fewer stock keeping units bring about the added benefit of larger volume purchases. This will allow the operator to reach rebate targets much faster.