February-March 2022 - 23

INTRODUCING
OUR NEW
the same direct operator/retailer purchase reporting that
Custom Data Solutions can.
IRI data are like report cards that monitor past actions,
according to Nudi, and do not meet the requirements of a
trade class like vending that has fluid distribution. " In vending,
the decision points are much more varied to the many
operator/retailers' headquarters, the route drivers and even
the consumer preferences at the machine's location level, " he
explained. " There is a constant review occurring at several
levels requiring near real-time visibility. "
To accomplish this CDSI has developed a unique identifier,
or the " CDSId, " for each operator; no matter where they
purchase their products, they are linked to the common
identifier. Additionally, a product broker that represents
multiple CPG products will see the same CDSId across any
CPG to which they have access.
" The definition of vending has really changed over
the past 10 years or so, " Nudi said. " It is no longer just the
glassfront vending machine. " CDSI's reporting is now organized
under numerous segments. Today's vending segment
comprises traditional vending machines, self-checkout micro
markets, fundraising and concessions. Other CDSI segments
include theaters, correctional facilities and specialty/alternate
markets, as well as some parts of hospitality, campus retail,
and travel and leisure. The specialty/alternate segment could
include such retail venues as Lowes, Home Depot, Michaels,
Bed Bath & Beyond, Auto Zone and Fastenal.
" Sales in each of these segments go hand in hand with
the segments of business that the vend distributors have
evolved into over the years, " Nudi explained. Today, the
vending and specialty/alternate segments, combined, represent
more than 88% of the convenience services business,
Nudi reported.
Interestingly, sales in the correctional segment, a
relatively small market, never slowed during the pandemic.
In fact, sales there continued to increase throughout the
COVID crisis, even surpassing 2019's levels. " Inmates really
love their snacks, " Nudi concluded.
CDSI can also provide incentive program data. These
marketing programs allow the operator/retailer to earn
points or rebates for their purchases. In 2020, CDSI calculated
and disbursed more than $51 million in rebates for its
CPG clients. " This does not include the rebates paid by CPGs
where we do not do the calculation, although they use our
data as the primary source for these payments, " Nudi noted.
" Vending is truly a pioneer business model that evolves
quickly to changing trends and moves away from declining
trends faster than any other trade class, " Nudi said. " Timely
reporting magnifies the growth potential for CPG suppliers,
product distributors, brokers and operators. Data is essential
to maximizing assets and returns for all concerned. " ■
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February-March 2022

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