According to the Future of Manufacturing report, a third of manufacturers establish profit through servitization. Robots as a Service (RaaS), the business model for deploying robotic automation on lease, is also starting to gain traction. Let’s analyze the possible of RaaS, when reviewed to traditional robot purchasing.
 
RaaS explains the purchase of industrial robots by leasing robotic devices as recommended, as opposed to the traditional method of purchasing a robot outright. Like many other servitization models, the concept boasts lower upfront costs and the advantage of ongoing maintenance. But, why fix a model that isn’t broken?
 
Robots have long reigned supreme in some areas of manufacturing, such as automotive production and heavy industry. As the first adopters of six-axis robots, some as early as the 1960s, these large-scale industries understand the potential of robotics and importantly, have the financial resource to deploy this technology.
 
Little to medium-sized manufacturers, on the other hand, haven’t been as quick to adopt robotic automation. High upfront costs make acquiring, integrating and maintaining an industrial robot unfeasible for many smaller businesses. However, RaaS could soon change this.
 
Evaluating the Benefits
 
One of the benefits of RaaS is the probability to lower the barrier of entry for smaller manufacturers. Leasing robots on a monthly, quarterly or yearly fee reduces the upfront cost dramatically, allowing manufacturers to commit in otherwise overtly expensive automation, without breaking the bank.
 
Getting rid of direct costs isn’t the only relief for smaller manufacturers. A large part of the saving from RaaS would be a decrease in unforeseen maintenance costs. Like many other servitization models, as the robot is hired, the onus and cost of fixing the robot would fall on the robot provider.
 
Think this as an example. A medium sized manufacturer has ordered an industrial robot to help with production, but after a few months the machine has broken down. On top of initial cost of purchasing the robot outright, the manufacturer would have to expend resources on employing specialist repair technicians, purchasing replacement parts and getting the robot back in working order.
 
Of course, some industrial robot suppliers do provide warranty and after sales support for their machines, despite of the system used to purchase the robot. However, selecting through RaaS could give smaller manufacturers with the additional reassurance they need to make the initial investment.
 
Shopping through RaaS would mean all repair expenditure would be taken on by the provider. What’s more, as the direct supplier of the machine in question, the service provider should be able to fix the machine quickly as they are familiar with the technology, reducing the amount of downtime experienced by the manufacturer.
 
Lessening the expense of unplanned maintenance would allow for even the smallest of manufacturers to work funds on other parts of the business, including the potential for more automation.
 
Keeping it Traditional
 
Servitization boasts reduced maintenance and reduced upfront costs. However, purchasing industrial robots outright doesn’t necessarily carry financial risks. RaaS may not suit the requirements for every manufacturer. However, there are ways to reap the benefits of this business model, while ensuring they have complete ownership of the machines operating in their facilities.
 
One way of reducing the likelihood of unplanned maintenance is to select the highest quality of robots before making an investments. By ordering an industrial robot from a reputable supplier, smaller manufacturers will be certain to receive a trustworthy high-quality product. They will also have access to a strong distribution network that will support their needs every step of the way being able to quickly supply free parts. Overall, even without RaaS, small manufacturers are in a strong position to start automating.


This article is originally posted on Tronserve.com