We are in competition with industrial vending machine providers who primarily focus on manufacturing hardware. However, we differ significantly in that we operate as a predominantly SaaS (Software as a Service) company, with all aspects of mechanical engineering and hardware production outsourced to third parties. The reason for having our hardware is primarily for marketing purposes, serving as an initial entry point to the market and helping our customers quickly grasp our value proposition. In the long run, our goal is to become a comprehensive software provider for Vendor-Managed Inventory (VMI) solutions, capable of interfacing with various existing vending machines.

Furthermore, selling hardware offers the advantage of accelerating our path to profitability. Notably, we can achieve this while still maintaining a healthy 50% profit margin and securing 50% of prepayments before production begins. It’s important to highlight that we have deliberately avoided tying up our capital in hardware production. Additionally, we have streamlined our operations to eliminate the need for hardware installations and ongoing maintenance, as our products have been designed to be plug-and-play.

In conclusion, we are developing a Hardware-enabled SaaS solution.

Vendor-managed inventory (VMI) is an inventory management technique in which a vendor of goods is responsible for optimizing the inventory held by a customer. In most cases, VMI goes together with a consignment offer. This means that the goods belong to the vendor until the moment of consumption and the ownership changes only after the goods are actually used by the customer.

Instead of holding all the goods at one central warehouse, vendor keeps the products at their customers’ facilities instead.

Industrial vending machines are used to automate the supply of industrial consumables (cutting discs, fasteners, chemicals), protective gear, electrical components, and spare parts. These parts are all kept at the maintenance warehouse of the factories. Because this is a side process for the factory, in most cases (almost 90%) maintenance warehouses are not automated. Manufacturers have found a way to automate the supply of these consumables with vending machines.

Manufacturers don’t need to manually place purchase orders: Time save.

Manufacturers increase the availability of goods to reducing downtime.

Goods have to be always readily available if there is a need to make maintenance for the production lines. Manufacturers don’t need to purchase the goods upfront because products belong to the vendor until the moment of consumption: Increasing liquidity.

No need for a warehouse keeper because vending machines are designed to be used by the end-users: Less manpower for warehouse operations.

We are targeting the top 100 European industrial vendors, including names like Würth, RS Components, and Rubix. Our sales strategy will initially focus on high- touch sales, utilizing an active sales team to convert large targets into customers.

As we establish a strong customer base, we will gradually transition to inbound customers, primarily small and medium-sized enterprises (SMEs). Our primary markets for the next couple of years will be Poland, Germany, and the UK due to their high concentration of industrial vendors and manufacturing companies.

We are targeting customers with a minimum LTV of €1M.

Yes. Surprisingly, the industrial vending machine market is growing 9,6% CAGR for the next 8 years with TAM currently more than €25B.

In addition to the current market size, we are helping industrial vendors to grow the market even further. With current solutions, vendors are limited to serving only larger group of customers because of a high total cost of ownership.

With more affordable solutions, vendors can practice VMI also on smaller customers. This means that we are helping to increase the market value in general and push the annual market growth rate over 10% CAGR.

Please also check the 2nd to last question here at FAQ about our long-term vision to understand the larger market potential for this product.

Our target segment consists of large industrial vendors already utilizing vending solutions. These vendors have dedicated teams for industrial vending solutions and are familiar with the concept. We will focus our efforts on these customers as they are more likely to understand and appreciate the value of our product. By leveraging our solutions and capabilities and demonstrating a superior offering, we can capture a significant market share.

Our buyer is usually the head of vendor-managed inventory / vending solutions.

Since our target customers require a high-touch approach, we will build a skilled and dedicated sales team. This team will focus on actively engaging with potential customers, arranging meetings and demonstrations, and growing relationships.

In the next two years, our sales team will consist of two members dedicated to active sales, responsible for prospecting and closing deals, two members focused on customer success, ensuring customer satisfaction and long-term retention, and a head of sales responsible for hiring these 4 members and helping them become the best salespeople.

Our marketing strategy will complement the sales efforts by generating awareness, establishing thought leadership, and generating leads. We will hire a hands-on head of marketing to drive our marketing initiatives. Key components of our marketing strategy will include content marketing, industry partnerships, participation in trade shows and conferences, targeted advertising campaigns, and digital channels to reach our target audience.

The concept VMI (vendor-managed inventory) works also in multiple other business verticals we are planning to enter in the future:

1. Automotive Industry
2. Chemical Industry
3. Construction Industry
4. Aerospace Industry
5. Technology Industry
6. Healthcare Industry
7. Retail Industry
8. Food and Beverage Industry
9. Consumer Goods

We will became a household brand for VMI solutions.

Unique value proposition:

We are building a solution that combines smart lockers, weight-sensing technology, and a smartphone app. This integrated approach sets us apart from competitors who may offer individual components but lack a holistic solution.

Our unique value proposition provides customers with a seamless and efficient AI-based inventory management system, creating a significant barrier to entry for potential competitors.

Established relationships: Our target market consists of large industrial vendors who already use vending solutions. By focusing on vendors with dedicated teams for industrial vending solutions, we benefit from pre-existing relationships and a deep understanding of their needs. These established relationships provide us with a competitive advantage, making it challenging for new players to replicate the trust we have built.

Scalable technology & the first open network: Our software and hardware solutions are built to scale. As our customer base expands, our platform can accommodate the growing demand and handle increasing transaction volumes. This scalability provides us with a competitive advantage over competitors who may face challenges in scaling their technology effectively.

Intellectual property: Our solutions will be protected by the IP rights, such as patents and copyrights, which will provide us with a defensible position, preventing competitors from directly copying or replicating our innovative features and functionalities. We have already filed to register our trademark and have made the first steps toward filing a patent application.

Industry expertise: Our team possesses deep industry knowledge and expertise in the vendor-managed inventory space. We have a combined experience of more than 60 years in the field. This specialized expertise acts as a barrier for new entrants who lack the industry knowledge required to deliver comparable solutions.