For nearly two decades, VDMS has been helping service station operators and retailers safeguard their most valuable stock, while also improving efficiency and opening up new revenue opportunities. We sat down with Dean Spencer, Director at VDMS, to discuss the challenges facing the industry, the role of technology in protecting operators, and what lies ahead.
Understanding Retail Challenges
Dean brings deep industry knowledge to his role, having worked in store management, territory operations, and category management for major brands such as Mobil and 7-Eleven. “I understand the challenges service station operators face on a day-to-day basis,” he says. “I stay in touch with operators regularly and make sure VDMS is focused on solving their real problems.”
Tobacco and the Rise of Illicit Sales
The decline in legal tobacco sales and the rise of illicit tobacco has shaken the industry. “It is shocking to see how illicit tobacco has taken a stranglehold on the market,” Dean explains. “It’s damaging not only to retailers but also to suppliers like VDMS. We understand the financial impact operators are facing.”
Despite the changing landscape, one fact remains constant: tobacco products are high-value targets for theft. “Securing tobacco has always been important and continues to be. The threat of break-ins and robberies hasn’t gone away. Protecting stock and ensuring staff safety must remain a priority.”
Security and Operational Benefits
VDMS technology is designed to address both external and internal risks. “Our robust machines, integrated with POS systems, create a strong deterrent to theft,” Dean says. “Operators tell us one of the greatest benefits is a reduction in internal shrinkage.”
Staff also report feeling safer with secure dispensing systems in place, while insurers recognise the added protection. Beyond security, VDMS saves time in operations. “Restocking is quicker, stocktakes are easier, and touchscreen dispensing means staff no longer waste time searching through drawers for specific brands,” Dean explains.
Driving New Revenue with Digital Displays
In addition to security, VDMS offers units with digital display capabilities. “Retailers can use them to run time-of-day promotions and offset lost tobacco sales by promoting other categories,” Dean notes. “We’re also working with digital out-of-home specialists to create opportunities for retailers to generate passive income through third-party advertising.”
This innovation also reduces the cost of traditional printed point-of-sale material, making promotions more flexible and cost-effective.
Adoption and Future Outlook
With more than 1,800 machines installed across Australia and nearly 200 in New Zealand, VDMS solutions are well established across both independent operators and major groups. “Security is always the primary motivator, followed closely by staff safety,” Dean says.
Looking ahead, VDMS is expanding integrations with POS providers and further developing its digital media platform. “We currently integrate with more than 12 POS systems in Australia, and that number is growing. Digital media is the future, and we want to ensure it delivers measurable value for retailers.”
Advice to Operators
For independents considering secure dispensing, Dean highlights what sets VDMS apart:
- Australian-owned, with units assembled in Queensland
- Advanced theft prevention and compliance support
- Cloud-based media platform and insights
- Local service team with nationwide reach
- Tailored systems designed for real-world retail environments
He also notes that cost, while sometimes seen as a barrier, is more manageable than many assume. “We now offer 12-month payment terms, so operators can spread the investment while enjoying the peace of mind of secure storage straight away.”
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