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Logistical and financial relief thanks to intelligent, customized financing solutions

Our customer British American Tobacco

British American Tobacco (BAT) in Switzerland, one of the world's largest tobacco companies, employs over 100 people in Boncourt and Lausanne. BAT faces a significant logistical challenge: regularly refilling 5,000 vending machines with tobacco products and other consumer goods. Additionally, all vending machines had to be retrofitted for the new Swiss banknotes, representing a major investment.

Challenges

Complex management Time-consuming management of the vending machine fleet

Cost burden Costly retrofitting of machines with new readers

Non-core tasks Operational activities outside of BAT's core business

Intelligent outsourcing

In close collaboration with DHL Switzerland, a subsidiary of Deutsche Post responsible for logistics and retrofitting, CHG-MERIDIAN developed an efficient management concept for all vending machines. Newly installed sensors allow DHL drivers to deliver tobacco products to the vending machines as needed, ensuring just-in-time delivery.

Our customized technology2use success formula

Asset Retrofitting 5,000 vending machines with new readers for new Swiss banknotes and equipping them with sensors for more efficient (just in time) refilling.

Finance Sale and leaseback: CHG-MERIDIAN purchased all machines and leased them back to BAT in line with the budget. This has significantly increased cash flow predictability, cost transparency and delivered additional profit to BAT’s bottom line.

Services The agreed monthly service and rental rates include all expenses incurred, covering installation, storage and delivery, repairs and upgrades. This comprehensive approach has significantly reduced the costs and risks for BAT. As a result, CHG-MERIDIAN's model allows BAT to concentrate more on its core business.

Conclusion

CHG-MERIDIAN successfully uncovered several opportunities for the tobacco company BAT through a carefully crafted concept to address logistical challenges, paired with an intelligent customized financing solution. The modernized vending machines now enable just-in-time delivery of tobacco products. The rental and service model has substantially decreased logistical efforts and risks, thanks to predictable regular installments.

Zoltkan Hotkai, Corporate Finance Manager at BAT, has expressed his satisfaction with CHG-MERIDIAN as a competent partner that can swiftly and flexibly address all technical queries.

"Managing our fleet of vending machines was time-consuming. We had to spend administrative time on operational activities that are not our core business. By setting up an effectively managed fleet of vending machines, CHG-MERIDIAN has given us more time for our core business."

Zoltan Hutkai Corporate Finance Manager at BAT Suisse