Automating with Telemetry & Delegation
Mike Hoffmann
Vending Machine Expert
Discover how automation through telemetry and strategic delegation can revolutionize operational efficiency, reduce labor costs, and optimize supply chain management.
Automation & Smart Equipment Investments
This lesson reveals how to turn your vending business into a self-managing system using telemetry, smart tech, and gig-friendly staffing to cut costs and grow efficiently.
Remote Monitoring & Alert Rules
Mike never drives to check stock—telemetry tells him what, when, and by whom.
His North Star metric: $90+ average revenue per visit. Color rules guide action:
Green ≥ 70% full – ignore. Yellow 30–70% – queue. Red ≤ 30% – same-day top-off.
Notifications, Heatmaps & Smart Tech
Yellow alerts push to phone, red sends SMS, and all posts go to Slack.
Heatmaps reduce mileage. AI fridges and cooler cafés slash shrink by ~90%.
Vision sensors + smart coils eliminate jams. Parlevel & VendSys re-sequence routes to save 15–25% in miles.
Auto-Reorders, Labor Math & Roles
Auto-reorders via Vistar API, VendHub, and Costco Business. $1K in smarter KPIs saves ~$80/month in labor/shrink.
Stalkers hired via Craigslist ($20/hr) handle ~14 machines at 1.5 hr/machine/week.
Incentives: $1/hr bonus for 0% stockouts, 5% profit share post-90 days, equity slice for top performers.
Weekly Rhythm & Team Roles
Monday: run low-stock report, auto-generate pick list. Tues/Thurs: short top-offs. Friday: audit KPIs & approve payroll.
Roles: Owner sets KPIs, prices, and vendor ops. Stalker runs picklists and restocks.
Tech handles jams & service. Float covers PTO and urgent red alerts.
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Complete the following exercises:
1. Reflect on your current operational processes. Identify an area where telemetry could improve efficiency or reduce costs. Consider what metrics would be most valuable to monitor and how you could automate responses to these metrics.
2. Consider the role of delegation in your organization. How could you apply the concepts of gig-friendly hiring and strategic incentives to improve productivity and reduce labor costs? Draft a brief plan outlining your strategy.
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QUIZ
1. What is a key benefit of using telemetry in operational management?
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Leave your comments and questions below.
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