FEATURE Packaging Machinery 


Servitisation at the heart of Industry 4.0


Martin Leeming, CEO of packaging company Trakrap, looks at how servitisation will transform the packaging machinery sector and drive technology adoption


T


he benefi ts of Industry 4.0, such as connectivity, automation and data analytics was gaining momentum before Covid-19 struck as many


manufacturers switched on to potentially transformative technologies. In a post- Covid world, manufacturers have had to focus on agile and effi cient operations, and had to recognise that as margins are squeezed servitisation off ers a way to access the technologies associated with Industry 4.0, to better manage costs and deliver more predictable cash fl ow.


Not so new


Servitisation is not a new idea, the print and photocopier industry have been using this model for decades, with all assets serviced by the provider; but, in manufacturing, adoption has been slower. We know that one of the many issues facing the UK’s manufacturers is the pressure to invest in or upgrade to next- generation production technologies. Servitisation off ers a way to unlock these benefi ts and, for today’s manufacturers who want exceptional performance from their plant-fl oor equipment to drive productivity, servitisation models can deliver just that. Once service levels have been agreed, such as overall equipment eff ectiveness (OEE) and total cost of ownership (TCO), the manufacturer can hold the machinery supplier accountable for delivering it. There are no extra charges for parts, labour or callouts; instead, to protect the manufacturer, there are penalties for non-delivery. The objectives of both manufacturer and equipment supplier are therefore completely aligned.


Key benefits


One of the other key benefi ts a servitisation business model delivers is that it enables customers to purchase innovative new technology without the need for any


22 July/August 2021 | Automation


Servitisation is beneficial in packaging machinery


costs – such as callout times – and reduce equipment downtime. Essentially, the manufacturer reaps all the benefi ts of consistent, ongoing innovation without having to foot the bill.


Martin Leeming, CEO, TrakRap


capital expenditure, and introducing new innovations – for example in automation technology – that would otherwise be prohibitively expensive. One of the crucial ways servitisation has started cutting through is in packaging. High growth in e-commerce driven by the coronavirus crisis has also driven demand for secondary or transport-ready packaging. Today, packaging is available as a ‘pay per wrap’ model, allowing manufacturers to acquire innovative, automated packaging machinery without having to spend heavily on capital equipment. Furthermore, this new breed of machinery features the latest digital technology, which means each pack costs less than traditional packaging methods, and features such as digital-twin capability enables equipment owner to modify and upgrade regularly to continually drive productivity, reduce ongoing maintenance


New developments Unlike the automotive industry, servitisation or ‘pay for outcomes’ models are still a relatively new development in wider manufacturing – particularly in the food and drink industry. Outdated views around equipment ownership, depreciation and lack of investment have led to much of the industry being dominated by older, owned machinery, particularly where end-of-line or secondary packaging are concerned. In addition, traditional accounting methods do not include the huge productivity benefi ts that are enabled by digitisation. This is counter-intuitive for an industry where demand for many of its products is cyclical or seasonal. Servitisation in packaging allows you to only pay for packaging the products you are going to sell, adapting quickly to fast-growing new product ranges and heightened demand.


CONTACT:


TrakRap www.trakrap.com


automationmagazine.co.uk


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