Logistical and financial relief

More focus on core business thanks to modernized vending machines

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

ASSETS 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.