02 Dec Case Study – Managing Growth with Powerful Vending Technology
Accelerating Growth with Cashless Payments and VMS
Like countless other vending businesses around the country, Royal Vending faced a challenge in managing rapid growth while maintaining its high level of operations. A vending, office coffee, and micro-market provider serving the Portland, Oregon area, Royal recognized that technology was necessary to help keep a firm grasp on their operation. By implementing a Vending Management System (VMS), Royal was able to manage their company more effectively and significantly grow their profits. Just three months after adopting a VMS, Royal had found that sales were booming – one of Royal’s best performing machines had an average pull of over $500 almost every time it was serviced.
Royal’s founder and co-chief executive officer, Ryan Harrington, built his business alongside his wife and co-chief executive officer, Michelle, through hard work and hands-on management. Initially starting with just two machines, Royal now operates some 350 machines and 20 micromarkets across the Portland area. As the company grew, it became increasingly difficult and time consuming to keep the operation running smoothly. Eventually, Ryan and his team came to the conclusion that a comprehensive Vending Management System was necessary to keep Royal on a positive path.
Choosing the Right VMS
Having made the decision to integrate VMS technology into their operations, Royal’s management gathered information on various VMS solutions. After considerable analysis and study, they selected Parlevel’s VMS as the best option for his business.
“We recognized that implementing a VMS would have a long-reaching impact on our business, so we took a cautious approach,” said Ryan. “It was quickly apparent that the Parlevel VMS offered everything we needed.”
Royal was looking for several key features in a VMS. According to Ryan, he wanted a system that was easy to use, a support team that was helpful, and the flexibility of a platform to match the needs of his operation.
“We had been using our home-grown system, and had a pretty good feel for technology, but the VMS is so easy that even somebody who is not tech-savvy can be comfortable with it”, noted Ryan. “The knowledge and responsiveness of the support team made a difference as well. They really understand the ins and outs of running a vending business, and this experience gives our team a great deal of confidence in the system.”
After choosing the right VMS for his company, Ryan and his team were initially concerned with getting the new system up and running, however, the implementation process only took three weeks and disruption to Royal’s every day operations was minimal. Royal began to increase their operational efficiency without undergoing a major overhaul of their operations.
“The Parlevel implementation team really understood what was required, and worked tirelessly to get everything done without any significant disruption to our customers or to our business,” commented Ryan.
Impact to Business Every Day
Royal noticed a positive improvement to their business almost immediately. They had access to route optimization features and real-time access to machine status that let them manage their business more effectively than ever.
“We have a live view of every machine,” noted Ryan. “We can address breakdowns immediately, see what products are selling, and plan a site visit just before a product sells out.”
Life with a VMS – Revitalizing Stubborn Machines
Instituting a VMS brought Royal’s revenue growth to new heights. Not only did some of Royal’s best machines boost sales, but poor performing machines were revitalized.
“Two machines increased revenue by almost 40 percent,” said Ryan. “The system enabled us to monitor and tweak the product mix to make sure that we could optimize the performance even more.”
This increase in revenue carried over to Royal’s entire operation. A gross sales increase of 12 to 15 percent was seen in most machines. The high level of increased revenue validated Royal’s decision to invest in a VMS and Parlevel in particular.
“Net revenue was up in every machine,” said Ryan. “Another big contributor to the bottom line was the virtual elimination of breakdowns and machine downtime. We can immediately see when a machine is in trouble and can get it back in service quickly so we don’t lose sales.”
Ryan and his team have saved time, increased efficiency and gained control of their rapidly growing operation as a result of adopting Parlevel’s VMS. Royal spends less time planning out routes, services more machines faster than ever before, and experiences high levels of sales in the majority of their machines.
“The Parlevel VMS has really changed the way we do vending,” Ryan concluded. “We are very excited to see where our partnership takes us. I have every expectation that we can continue to maintain a tremendous partnership down the road.”
About Parlevel VMS
Parlevel’s cloud-based VMS and provides vending operators with real-time reporting and visibility into vending machine inventory, performance, and route management without the need to purchase or install any dedicated computer or network equipment. The system captures actual sales data and stocking needs, which allows for robust pre-kitting and merchandising functions. The VMS also includes an Office Coffee Service (OCS) module to facilitate the management and tracking of coffee products and equipment.
Headquartered out of historic San Antonio, Texas, Parlevel Systems is the fastest growing provider of Vending Management Solutions (VMS) for vending operators and coffee, tea, and water service providers. Founded by a team of successful vending and technology professionals, Parlevel is dedicated to delivering powerful yet easy to use technology that provides operators with complete control and accountability of their business anywhere, anytime. In addition, Parlevel has a dedicated team of customer and technical support to ensure seamless implementation and a transformative return on investment.