Smart technology provides Original Equipment Manufacturers (OEMs) increased productivity, which equates to an increased bottom line. in addition, smart technology provides an opportunity to deliver incremental value to their customers.
OEM customers often tell us that they experience tight profit margins and have limited available capital. So, why should an OEM invest the time and money to build smart machines? The answer, building smart machines is advantageous to both the OEM and the end user.
For OEM customers, smart machines provide data that allows them to make faster decisions. For instance, perhaps a device is experiencing slower throughput. If that product is "smart", operators can detect the issue before it becomes a problem. This saves them time and money, resulting in increased efficiencies and productivity.
For the OEM, the competitive advantage of offering a technology that your competitors cannot is worth the initial time and expense. It means you have differentiated yourself and allows you the opportunity to build stronger relationships with your customer, becoming a partner, rather than just a machine provider. Your customers instantly gain a partner that understands the smart machine in a dynamic way that can maximize machine productivity. There are also additional revenue streams that can be achieved with smart technology. They are:
Outcome Based Services: Service agreements can be tailored to give customers a guarantee around specific outcomes.
Consumables as a Service: These service agreements provide parts, materials and maintenance. For instance, an OEM could deliver raw materials and consumable components as a monthly service.
Equipment as a Service: OEMs can lease machinery, collecting periodic payments on a usage basis thereby being able to allow their customer to pay you back for every unit they manufacture.
Interested in learning more about smart technology and what it can do for your business. Revere Electric can take you on a customized Smart-Machine journey that will ensure a scalable solution that will differentiate your company and create additional revenue streams.