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Industrial Vending Machines are point of use systems which are designed and manufactured to assist in the storage, dispensing, replenishing and control of a companies tooling, spares, MRO and a large variety of other materials.

If you are looking for improved methods to manage your stocks, avoid production downtime, improve your customer service performance you should explore the many advantages vending has to offer.

I have summarised many of these benefits and advantages under two main categories.

Reduce Costs

Reduce Consumption- Stop Waste. With industrial vending machines you control access, and set various control limits. You have real-time data availability on tracking, dispensing, and usage patterns. This enables you to make effective data based business decisions.

Reduce Inventory – Use supplier-consigned stock.Operate a Demand-Based ordering system over traditional Min-Max based procurement. Ownership of stock often only transfers when it is consumed or on other pre agreed terms. You are in effect operating a just in time inventory policy!

Reduce Spend on new tools and spares – many tool vending machines can be programmed How To Manufacture A Prototype to facilitate dispensing of reconditioned items prior to new items.

Reduce/Manage Obsolescence-most systems have capability of providing visibility on slow and discontinued items.

Reduce/Eliminate Stock-Outs, as real-time stock data available. You have the option to pre-set reorder minimums or operate a demand-based system to activate stock replenishment.

Replace Your Traditional Store with an automated “point of use” located vending machine. It will provide access and availability to your mro inventory and other components on 24/7 basis with secure storage.

Reduce Overhead – you have the possibility to reduce or eliminate traditional purchase orders.Industrial Vending systems have the capability to automatically reorder based on preset stocking levels. Your supplier will provide one consolidated invoice for payment at month end, or to other agreed terms.

Redeploy Support Staff – a demand-based ordering system will reduce time spent monitoring stock levels. Vending will also generate a reduction in other logistical activities, eg receiving, accounting and general inventory control functions.

IMPROVE PRODUCTIVITY

Reduce/Eliminate Production Downtime – out of stock risks are greatly reduced.

Point Of Use Located – parts readily available to operator, delays at traditional operator managed store eliminated. Systems being continuously upgraded to deliver faster dispense times. Majority of systems can be configured to accommodate and dispense items of various shapes and size.

Accessibility of Items 24/7. You can plan overtime and/or extra shifts at short notice. Support staff eg store assistant not required.

Reclaim Floor Space Currently Used For Storage – utilize it for manufacturing or another revenue generating activity.

Real Time Data Availability – you have access to an unlimited number and variety of customised reports, eg, usage and consumption by operator, job, line, cost center, business unit etc. Many systems can display key data in dashboard metrics format.

Turnkey Solutions Available – most industrial vending machine manufacturers and distributors will provide a complete turnkey package. You will be provided with software, setup, training, support and many will have the capability to …

Familiar Business Process Outsourcing (BPO)
Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of operations and responsibilities of specific business functions (or processes) to a third-party service provider.
Most people are familiar with the more common subsets of BPO such as RPO (recruitment), LPO (legal), KPO (knowledge), logistics (3pl) and of course ITO (information technology). BPO is typically categorized into back office outsourcing – which includes internal business functions such as human resources or finance and accounting, and front office outsourcing – which includes customer-related services such as contact center services.
The “New” Outsourcing… Workforce Process
A new form of BPO which is becoming more popular is WPO (Workforce Process Outsourcing) or MPO (Manufacturing Process Outsourcing). WPO involves the contracting of labor where the service provider is responsible to meet service levels at a transactional cost. The WPO provides the labor, management, and some support functions for a cell, department, or entire facility. The business or manufacturer is typically responsible for the facilities, inventory, equipment, quality assurance and logistics. The specific responsibilities are worked out while negotiating the “Statement of Work.”
Traditional Temporary Labor Models vs. WPO Model
Temporary labor has become a mainstay for companies looking to maintain flexibility and control labor cost as well as decreasing employer liability exposure. Temporary labor is a cost plus solution where the staffing provider adds a mark up to the hourly wage. Temporary labor has been effective in maintaining flexibility but has not provided full protection against liability nor is it always an effective cost control strategy. Temporary labor typically is not accountable for productivity or quality. Moreover, the temporary staffing company often does not share the cost of training the temporary workforce. Therefore, the cost of low productivity, bad quality and high turnover is the burden of the manufacturer or business. On the other hand, the WPO model provides liability protection, absorbs the cost and responsibility of training and retention, and assumes responsibility for meeting quality and productivity standards.
A Look at Third Party Logistics (3PLs)
A 3PL is a firm that provides a one stop shop service to its customers of outsourced (or “third party”) logistics services for part, or all of their supply chain management functions. Originally 3PLs focused on logistics which was primarily transportation, warehousing and distribution and charged the client on a cost plus model.
Over the years their clients have started pushing more and more value added services (VAS) down to the 3PL. VAS falls outside of traditional supply chain/logistics expertise and is often labor intensive. Typically it is also billed at cost plus and the 3PL has little incentive to be efficient. If you couple their lack of expertise and resources with the lack of incentive, you end up with a inefficient and costly labor model. Also in the 3PL outsourcing world, manufacturers and businesses lose operational control of having product within their own facilities, inventory systems, and direct line of sight.
Workforce Process Outsourcing (WPO): A Hybrid Providing “Across …

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Industrial Vending – Want to Reduce Costs and Increase Productivity?

Workforce Process Outsourcing (WPO): A New Solution to Increased Productivity