As industries change rapidly, Equipment as a Service (EaaS) offers an innovative way for industrial companies to increase their production capacity and easily scale by adding new machines. EaaS allows customers to purchase the performance of machines or production systems rather than the machine itself. In this model, the customer pays only for productive industrial performance. The price includes software, service, consultation, all required consumables and the Equipment itself.
According to IoT Analytics’ Equipment as a Service Market Report, the EaaS model will see a 300% rise in adoption by 2025, with 67% of companies already planning such a transition. This is not a coincidence. Equipment as a Service has much to offer, not only in cost savings but also in new modes of flexibility, scalability, and operational efficiency.
The Subscription Plus Model in practice.
The price per printed sheet is the focus: Heidelberger Druckmaschinen AG (HEIDELBERG), together with relayr and IoT Financing Services (IFS), is successfully driving forward the adoption of the digital business model EaaS. As part of the Subscription Plus Model, the customer receives all components, such as service, training, consulting, software, and consumables, delivered through Vendor Managed Inventory (VMI) by HEIDELBERG. The machine is provided as a part of the partnership. Customers also benefit from the automated delivery of consumables and optimized logistics organization.
Relayr and IFS support HEIDELBERG in the operational implementation of their EaaS business model and are also responsible for the financing. The advantage: the essential services, financing, and IoT solutions are provided from a single source.
WEIG Packaging GmbH & Co. KG, which produces around 160 million printed sheets per year at its Emskirchen location, expands the use of this model within the company. WEIG Packaging manufactures folding boxes for well-known branded companies and brand-name manufacturers in Germany.
The future is smart.
The subscription approach helps users improve their processes and increase their productivity. This is achieved through significant performance improvements in setup time, printing speed, and waste reduction. The attractive offer for commercial and packaging solutions aims to further establish the digitalization of business models in the printing industry.
The benefits of the Subscription Plus Model in a nutshell:
- Making no upfront investment
- Producing at the highest productivity levels
- Focusing on what truly matters thanks to smooth operations
“We have decided to use the subscription model from HEIDELBERG again because it allows us to implement our production goals flexibly and efficiently. We consider the excellent partnership with HEIDELBERG in service, maintenance, upkeep, and supply of consumables to be an advantage.”
Stefan Leonhardt, Managing Director, WEIG Packaging GmbH & Co. KG
If you are interested in developing an As a Service offering, learn more about this innovative model here.