How Vending machines are using Big Data and Artificial Intelligence
Before the coronavirus pandemic, the planet was largely headed within the direction of automation and robotics. From dating apps to robotic cooks in kitchens, to mechanized production lines in factories, human interactions were already becoming increasingly smaller – but Covid-19 has only propelled us further into the planet of automation. within the wake of Covid-19, the ‘new normal’ will involve continued social distancing and using technology rather than humans wherever possible, then it’s only natural to expect that big data applications will come to be increasingly relied upon. As strange because it could also be, removing sorts of person-to-person contact is going to be the priority during a post-COVID world.
Big data application on smart vending machines is one particular area where strong growth is predicted over coming years, not only due to its impact in terms of efficiency and optimal product replenishment but because it requires zero human to human contact or interaction – something people are going to be seeking for a few time within the aftermath of this deadly pandemic.
Coca Cola was – not surprisingly, given its scale and capacity for innovation – the primary to start experimenting with AI and large data to make smart vending machines that need less human management. The beverage supergiant hired Hivery, a data-driven platform that works with companies to optimize their retail strategies using AI and large data, to revolutionize the way it marketed and sold its products in over 200 countries. Starting with 60-odd vending machines in Newcastle, a town 160km outside of Sydney, the tech startup began experimenting with AI to ascertain whether it could stack vending machines better than humans could to optimize sales and profits. the corporate developed an AI algorithm specifically for Coca Cola, which algorithm resulted in an 18 percent reduction in re-stock visits, plus a 15 percent increase in sales, proving that big data really does make a difference when it involves slot machines optimization.
Every co-founder Jason Hosking said the gamble paid off and today they work with 20 major clients including those within the USA, Japan, and China to develop AI-focused solutions to retail challenges.
“The race for optimal replenishment or shelf space is that the most challenging problem within the global consumer retail industry, costing suppliers and retailers $400 bln in lost sales per annum,” he said. “Vending machines are data-rich and operationally companies have full control of the availability chain. this suggests you’ve got good datasets to coach your algorithms and have the facility and control to form changes within the market while at a retail outlet the choice is ultimately controlled by the shop owner.”
Today, big data is at the forefront of everything Coca Cola does. From choosing the situation of its vending machines to persuading loyal customers to get new products, to showcasing the various product options. the corporate has an astonishing market share of drinks sold through vending machines within the world. Their marketing budget exceeding Apple and Microsoft combined, in 2018 the corporate spent over 4bn dollars in advertising. the info that informs their marketing and business playbooks has been garnered from consumer choices. it’s easy to think that the behemoth has only one or two drinks in its product catalog. really, they own over 500 brands worldwide. Each being supported by vendors and served by vending machines.
“Artificial intelligence is the foundation for everything we do. We create intelligent experiences. AI is that the kernel that powers that have,” said Coca Cola’s global director of digital innovation, Greg Chambers. And with over 2 billion sales transactions each day in over 200 countries, meaning tons. The vast amount of knowledge aggregated by Coca Cola’s shops (including vending machines) around the world requires huge amounts of study across disparate sources to work out which products, packages, and flavors are received well by consumers. the connection with buying patterns is complex and is one of many reasons why Coca Cola uses AI.
But as Covid-19 continues to impact us in bizarre and unexpected ways, and that we scramble to work out the way to sleep in an excessively hygienic and contactless society, big data can help vending machines evolve and adapt in other ways too.
By informing a vendor’s product offering, for instance helping them recognize the demand for hand sanitizers, vitamins and face masks, or maybe shifting to supply fresh ready-to-eat meals prepared by robots, big data is upending the slot machine industry. Big data is even helping vendor companies re-organize the routes by which teams visit maintain, repair or deliver vending machines while roads are cut-off thanks to restrictions or lockdown, and helping operators optimize the space allocation of products so that they last longer, meaning fewer visits and fewer contact with the surfaces of the products.
As cities around the world enter lockdown and shopping centers, townships and shops are closed as a result, vending operators got to quickly shift to cost-saving initiatives if they hope to make sure their own survival over the approaching months. With the assistance of massive data and AI, they could be ready to achieve exactly that, meaning that they a minimum of could be ready to avoid the Covid-19 induced economic fallout that looms for the remainder of the business world.