Smart Vending Machines: Advantages and Disadvantages

This page explores the advantages and disadvantages of IoT-based Smart Vending Machines.

What is an IoT-based Smart Vending Machine?

Introduction:

We’re all familiar with traditional vending machines that dispense snacks, biscuits, and drinks when we insert currency based on a pre-programmed Graphical User Interface (GUI). However, modern vending machines are offering consumers much more. By connecting these machines to an IoT network, they become “smart” vending machines. These machines allow consumers to buy a wide range of items, including clothes, gifts, plants, and even luxury cars.

IoT-based smart vending machines enable retailers to sell their products around the clock, offering greater convenience to consumers. These machines are commonly found on street corners, in railway stations, airports, and outside offices. They often feature digital displays that provide entertaining experiences for users.

Figure-1 : Smart Vending Machine Architecture

The figure above illustrates the network architecture of smart vending machines. This architecture allows vendors to manage different types of machines from anywhere and at any time. As shown, IoT-based smart vending machines offer various value-added services, including bill payment, social media interactions (Facebook, Twitter, Instagram), news feeds, games, and weather information.

How Smart Vending Machines Work

In this system, the machines are connected to an IoT gateway, which interfaces with the internet cloud via Wi-Fi or a cellular connection. Users can interact with the vending machine directly through its display or by using a mobile or web app.

If a user chooses to use a mobile or web app, they’ll be prompted to enter a machine code, which is validated through an API. Transactions can be completed using wallet payments, credit or debit cards, or top-up payments.

The mobile or web app typically includes features such as vending machine operator registration and the ability to add or remove machines. This single cloud ecosystem benefits all partners, including OEMs, landlords, stock providers, retailers, advertisers, investors, and consumers.

For instance, landlords can easily collect rents through these machines. Suppliers can access real-time stock statistics, and service teams can view their records and schedules.

Benefits or Advantages of Smart Vending Machines

Here are the key benefits of smart vending machines:

• Real-time Usage Reporting: Vendors receive real-time usage reports, enabling them to maintain sufficient stock by continuously monitoring inventory.
• 24/7 Hassle-Free Service: Consumers benefit from 24/7 service, and vendors benefit from round-the-clock sales.
• Job Creation: The smart vending machine industry creates job opportunities in various segments. Companies need software and hardware engineers to develop the machines. Vending operators require staff to stock the machines using various transportation methods. They also need staff to manage the entire IoT-based system from a centralized location. This creates opportunities for application developers and banking staff as well.
• Benefits Various Industries: Retail, medical, entertainment & hospitality, credit/debit card banks, electronic component manufacturers, vending machine manufacturers, and transportation segments all benefit.
• Automated Expense Tracking: Expenses can be tracked automatically using a mobile app or web app through cloud-based web reporting.
• Elimination of Drawbacks of Older Machines: Smart vending machines eliminate many of the drawbacks of older machines that only accepted coins.
• Reduced Downtime: Proactive measures can be taken to fix issues at appropriate times, lowering downtime. Information on functioning and non-functioning machines is readily available, and alerts & notifications are generated whenever a machine malfunctions.

Drawbacks or Disadvantages of Smart Vending Machines

While there are many advantages, there are also some drawbacks:

• Security Vulnerabilities: These vending machines are prone to hacking, leading to theft of items and potential access to consumer banking transactions.
• High Initial and Operational Costs: Smart vending machines are expensive, requiring higher initial investments. Furthermore, they incur higher operational and maintenance costs.
• Need for Skilled Technicians: Repairing smart vending machines requires skilled technicians.