Enhancing operational efficiency in our Domestic Beverage Business
Labor shortages are having a significant impact on the performance of the vending machine segment of our Domestic Beverage Business. The DyDo Group’s vending machine network is one of the largest in Japan, and its operations are supported by approximately 3,000 operations staff from the Kyoeikai (special operators of DyDo DRINCO vending machines) and the individual group companies. In recent years, it has become increasingly difficult to secure route managers, especially in areas that lie outside major metropolitan centers, for which the Kyoeikai is responsible. Under these conditions, they could be forced to shrink their operations until they can be maintained with a small workforce.
So far we have been working to implement numerous frontline improvements to boost operational efficiency. However, to carry out more thoroughgoing measures, we will need to adopt IoT technology and reorganize our operations drastically. One of the strategies of our Mid-term Business Plan 2021 is IoT investments to streamline operations and establish a smart structure that will enable us to operate with a lean workforce.
Transition to new ways of working
In our sales activities, we are thoroughly implementing mobile work using flextime. Customer companies are also working from home, and online negotiations are gradually gaining acceptance. Accordingly, we have been promoting remote sales for the development of new vending machine installations, and we have decided to establish a dedicated team to promote business negotiations online in September.
However, as face-to-face sales are ultimately important, we will raise the productivity of development by increasing both the volume and quality of sales activities while leveraging the advantages of remote sales and on-site sales.
COVID-19 crisis has had a major impact on the vending machine market. However, a detailed analysis of its sales reveals not the fact that consumers are no longer purchasing beverages from vending machines, but the fact that the place where beverages sell has changed. We will flexibly change the target of places where we sell products in the location development activities based on the data, we accumulate every day, and maintain and expand our vending machine network.
Competitors' approaches to the vending machine business are changing
- Use online business negotiation tools
- Proceed with business negotiations through online meetings
- Business negotiations in person, leading to installation
- Remote sales