Automated supply distribution can transform retail in 3 ways

In recent years, the retail space has seen a rapid expansion of technological advancements as consumers and employers have started to embrace the latest tools and trends. In fact, almost three-quarters of retailers plan to increase their spending on technology in the next 12 months, according to Total Retail's. Retail Technology Report 2019.

Among the myriad of emerging technologies in the retail industry, one advancement – automated supply distribution – is expected to see strong adoption in the coming year. Automated distribution of supplies, which distributes essential products and supplies via automation technology, joins other retail technology innovations, such as Amazon.com's cashless stores and Kroger's transition to a standalone grocery delivery trial. The benefits of automated supply distribution are twofold, providing ease of experience for customers and retail employees. A smart vending machine in a retail store, for example, can improve the customer experience and secure high-value items, while a machine in the main workplace of a retailer can distribute the equipment or supplies that employees need to do their jobs.

This technology has a few key markers that have put it on the map to become a leading retail trend in 2020, including meeting consumer demands to improve the experience, the maximizing loss prevention efforts and streamlining internal processes for retail employees.

Keep pace with consumer trends to improve the customer experience

Consumers are constantly adjusting their preferences and looking for more convenient ways to shop. They want their purchases to be instantly delivered to their homes, accessible after hours or purchased with one click. A recent SOTI survey reveals that almost three-quarters of consumers favor self-service technologies to improve the shopping experience and reduce interactions with staff. Automated supply distribution offers retailers a solution-based opening to capitalize on the convenience of purchasing products and a chance to increase sales outside of normal business hours. A retailer can take advantage of smart vending machines and customizable lockers to stay operational at all times and provide consumers with instant access to what they need, when they want it. Purchases outside business hours are captured by software to the minute and allow retailers to track and trace every ounce of data produced by the machine.

Many buyers are also looking for cashless payment methods. Automated sales technology can guarantee buyers a simple, smooth, and quick shopping experience when using a card, tap, or other simple payment process to purchase their products. Combined with in-depth monitoring of data from a machine, retailers can understand and better adapt to customer habits thanks to real-time statistical input. Vending machines can also be strategically placed to encourage consumers to try new products, offer buyers the convenience of picking up essentials in one fell swoop, and reduce foot traffic and ensure buyers are guided there where the retailer wants them to head to the store. Refreshing and updating the on-site experience is essential to meet the ever-changing demands of buyers. Vending machines for supplies provide a way to meet changing customer demands.

Protect high value items

The loss and theft of products is an important consideration in retail, especially for retailers who sell physical goods in a storefront with frequent external customers. Automated supply distribution provides an effective means of securing products, especially the higher value products that can currently live in a closed box. Items that would normally be locked in security cases can instead be placed in smart vending machines or locker systems, reducing the time and effort that employees would normally take to unlock and re – continually lock the case every time a buyer wants to look at everything that is locked up. For example, a customer can purchase a high-value item at the checkout, then scan their receipt at the smart distribution station to retrieve the item they paid for when they checked out. This eliminates the additional step of asking an employee to unlock and retrieve a valuable item and allows the customer an efficient shopping experience.

Placing higher value products in smart stations not only shortens the wait time so buyers get what they need faster, but it also reduces the risk of theft. The higher value items are safe in the machine and each product is tracked using advanced software to provide a high level view of demand. Intelligent vending and locker systems can even help retailers in the event of theft at the end of operations, as automated supply distribution allows employers to track where the company's valuable supplies are, such as business laptops or cellphones, and creates a strong sense of internal security.

Rationalization of main operations

Along with improving the customer experience, automated supply distribution also makes the workplace more productive for retail workers, whether at head office or in a local storefront. Smart locker systems or vending machines can be used to store essential equipment (for example, product scanners) for retail workers and to ensure workers use and return their supplies every day. Background software can give managers an overview of loan-ready models among employees as well as a more accurate way of tracking the supply costs of each department .

From an IT perspective, important supplies for company employees such as laptops, keyboards or protective cords can be stored in smart distribution stations to streamline technology needs and increase productivity. Time spent waiting for new supplies or an IT team member to repair a broken laptop can be spent on other, more productive tasks, making essential supplies readily available to workers via a smart station .

It is essential for retailers to keep up with the latest technological advances and understand how they can help businesses thrive. Automation and innovation in sales can shape the customer experience on the front end and bring efficiency to back-end operations for employees. Focusing on creative and flexible digital solutions that meet both the desires of consumers and the internal needs of the workplace will lead to productive business practices and, ultimately, satisfied buyers and employees.

Howard Calderon is the CEO of IVM, Inc., an automated supplies distribution company that enables people to create, innovate and do what they love by providing instant access to essential tools. IVM offers “smart” sales solutions and lockers for the internal distribution of products to employees.