What has long been a staple in the consumer goods industry has now also become an established part of the B2B sector of industry: renting instead of buying. Instead of purchasing machines and equipment, they are provided for a fee – Equipment-as-a-Service (EaaS). Customers only pay for what they actually use, for example based on usage time or per production unit; maintenance, service and repairs are also charged using this pay-per-use model. On the one hand, this model offers machine manufacturers the valuable advantage of minimizing sales risks. Against the backdrop of challenging economic times, when fewer machines and pieces of equipment are being purchased, this is a great alternative. On the other hand, the companies who use this model also benefit by replacing one-off high capital expenditure (CapEx) with regular, lower operating expenditure (OpEx). Even though the model is sufficiently well known, only 14 percent of the machine builders surveyed offer an EaaS model, according to a study. The reason for this reluctance is the lack of know-how and support during its implementation.
In order to support both machine manufacturers and user companies in the implementation of EaaS, MHP has supported a partner in setting up an EaaS platform. This not only connects manufacturers with their customers, but also deals with the invoicing for the machines.
In our MHPDeepDive “Tomorrow's production: renting instead of buying” we will look at Equipment-as-a-Service models in more detail and illustrate how they can help both manufacturers reduce sales risks and user companies reduce investment risks. We will also show you the benefits to both groups. Finally, we present the EaaS platform we implemented together with a partner and report on a current customer project that is already successfully using the business model.
TOPICS AT A GLANCE
Here’s what to expect in our MHPDeepDive:
- We will introduce the Equipment-as-a-Service model and its benefits.
- You will learn why EaaS is worth it for both manufacturers and user companies.
- We present the EaaS platform that MHP has built together with a partner.
SPEAKER
- Harald Engelhardt
Associated Partner, Digital Enterprise at MHP - Paul Bruntsch
Senior Consultant, Digital Factory at MHP