2 December, 2020

Pay-per-part: An important step forward.

In times like these, it can be difficult to focus on the positive. The pandemic has dramatically changed our lives. Covid has taken our loved ones and demonstrated how vulnerable we are as a society. It is the personal losses that affect me most deeply. Yet, we will also be grappling with the economic impact of this pandemic for a long time to come. Entire industries are facing collapse, and the much-needed government aid will have a lasting effect on the national budget – creating a tremendous burden that future generations will have to shoulder.

Corona has also revealed that our CAPEX distribution models, which were previously so successful in the global marketplace, are not immune to crises. Many of our business models lack the resilience provided by regular (OPEX) income, which keeps cash flow and revenue reasonably stable, even in times of uncertainty.

For this reason, I am delighted that even in such difficult times, we have been able to partner with the world technological and market leader Trumpf. The first large-scale Equipment-as-a-Service project in the machine tool industry addresses a variety of issues that are worth examining. You can read more about it here: https://relayr.io/pay-per-part-trumpf-and-munich-re-plan-new-business-model-for-the-manufacturing-industry/

How can we make Trumpf’s customers even more successful? This is the philosophy driving the project – a project for which we have been able to secure Klöckner, one of the industry’s largest material suppliers, as a development partner. The offering is focused entirely on creating even greater success for Trumpf’s customers, fully realizing that this will, in turn, ensure the success of the Trumpf/Munich RE/relayr partnership.

Another exciting outcome of this offering is the emergence of a more resilient business model. As a consortium partner, we establish regular revenue streams, allowing us to plan better and making us more resilient in times of crisis.

In short, this model results in greater success, not only for our customers but for us as partners as well. What may initially appear to be counterintuitive can be understood by considering both how the project is designed and the principles upon which it is based.

While the key component of the offering is the TruLaser 7030, a technological tour de force created by Trumpf, we have not designed this model around the machine. The business model we are bringing to market has been created with the customer process in mind –making it as simple, affordable, and successful as possible for the customer. The gains in efficiency unleashed through this end-to-end approach (from raw materials to the finished tool) offer enormous potential for greater profitability – potential, which we share alongside our customers. Both the customer and we, as partners, benefit financially as a result of inefficiencies in the process and the market.

We at relayr are incredibly grateful and proud that we could be part of such an innovative project. It is a great honor for us that our technology is being used to bring this offering to the market. We are equally pleased that, through our parent company, we can provide insurance, risk transfer, and financing solutions that complement and round out the project.

In closing, I would like to take this opportunity to wish you, your families, friends, and colleagues the very best. I hope you are well and remain in good health!