The Hidden Cost of Cheap Machines

 

You may be tempted to buy an inexpensive dispensing machine as a way to cut costs and bulk up your bottom line, but you’ll probably want to rethink this. Though they are tempting, cheap vending machines come with many hidden costs.

Most of these dispensing machines have extremely limited capabilities and limited  upgrade options making them cost more than they are actually worth. Helix machines (traditional candy bar-type dispensers with a coil screw holding the product) are designed for low-SKU count, high-turnover applications. These machines work well in applications where the facility is using a high-volume of few products but won’t work well for most other applications such as manufacturing floors or EMS facilities that generally require high SKU and low volume machines. Cost-per-bin of helix machines is significantly higher than industry leading machines due to low-SKU count capabilities. In short, if you are looking for a machine that will help you  distribute a variety of product, this isn’t it.

Additionally,  low cost machines have some generally unknown fees and costs. Most maintenance, repair and operations supplies have to be repackaged in order to work in a low cost machine. This can only be done manually and can be incredibly labor intensive!

Most importantly, these machines are typically seriously lacking from a software standpoint.

Technological capabilities helix machines are missing include:

  • First-In, First-Out technology
  • Inventory algorithms for their replenishment systems
  • Easy integration into suppliers’ backend ERP systems
  • Managing both consigned inventory and end user owner inventory
  • They rely on remotely hosted web servers and so have limited onboard memory as well as potential to crash when internet connection is lost

The distributors selling these cheap dispensing machines don’t inform customers about these high costs. Instead, they just pass buyers along to their price per unit for their tools and supplies.

On the other hand, industry leaders in distribution are moving rapidly to more intelligent supply vending machines in order to keep their total costs globally competitive.

When you automate inventory management with an intelligent dispensing solution, you can replicate best practices and standardize business processes across your entire organization. The flexibility of our equipment along with iQ Technology offers an ideal asset management solution across almost any industry or application.  Equip your organization with the most seamless, technologically advanced inventory tracking system in the world.

Automated dispensing will lower your inventory costs and improve productivity while ultimately improving your organization’s bottom line.

For more information about our vending machines, visit www.intelligentdispensingsolutions.com.