As a Manufacturer, You Face Stiff Competition
Today, there are thousands of robotics and enterprise hardware manufacturers providing countless devices worldwide. Competition for manufacturers like you is at an all-time high thanks to manufacturing efficiencies that make it easier than ever for companies to either produce or outsource the production of device components and bring them to market quickly and inexpensively.
As a robotics or hardware manufacturer, you’ve undoubtedly run into this competition in virtually every prospective relationship. Whether opportunities were brought to you or you originated them through your sales team, you’re not the only manufacturer seeking to claim that lucrative spot in customers’ manufacturing, distribution, or supply chain environments. Opportunities are not small, either — new programs can gross tens and even hundreds of thousands of dollars for your business (and at times even more).
Now more than ever, it’s critical that manufacturers partner with resellers who provide unique solutions that meet customers’ goals. Customers aren’t just looking for inexpensive or high-performing technology — they’re looking for value-added relationships and more strategic offerings that help them achieve their objectives faster, with less cost, and with more support through the life cycle of their hardware.
One of the best ways manufacturers and their reseller partners can meet these needs is through Robotics-as-a-Service (RaaS) or Hardware-as-a-Service (HaaS). Let’s review some of the key benefits the As-a-Service model has to offer for your customers — and your business in return.
How the As-a-Service Model Benefits Manufacturers
It Meets Customers’ Needs for Updated Technology
All companies benefit from having the latest and greatest technology. The devices employees handle and customers see make an impact financially, operationally, and more. Technology leaders today understand that companies benefit from having newer devices that require less maintenance or downtime, require less support, and make a deeper connection with their customers. The As-a-Service model delivers on all these fronts, and when your customers’ contract is approaching its end, renewal is simply a matter of swapping old technologies with new.
RaaS and HaaS go even further, though — more rapid life cycles ensure higher levels of operational uptime and efficiency than having to deal with outdated devices. These financing options also add security benefits in that newer devices are less prone to being targeted by hackers or viruses due to outdated operating systems and lack of patching. And ultimately, newer devices create better experiences for customers, who appreciate companies having up-to-date devices.
It Allows Customers to Use Capital Strategically
The strategic use of on-hand capital is a concern for every company. How will it be used? Should it be used at all? What are the risks with tying too much capital up in technology and other initiatives? If your customers were to purchase a complete hardware or automation suite outright, it would be a significant investment — one that would take time for them to prove worthwhile and receive corporate approval. And as they used the technology, it would just depreciate in value over time — creating even more financial complexity.
With this model, your customers can take advantage of your solutions without having to make the upfront investment. You continue to sell your solutions and make a profit, and your reseller makes a profit off the financing arrangement. It’s a win-win situation for all parties involved. Your customers and those your reseller brings to you are able to preserve their valuable capital for other needs. They’re also able to prove ROI sooner because no cash outlay was needed — they’re simply enjoying the rewards of new hardware and a lower monthly payment.
It Keeps Customers’ Operations Running Smoothly
When it comes to hardware and automation, productivity and uptime are crucial. As a manufacturer, the performance of your devices reflects on your business and whether your customers will utilize your devices again in the future. Their performance also impacts your service levels. If your devices are breaking down frequently (for whatever reason), customers will expect support. With more service requests, your business will have to allocate more technician repair time, parts, and labor to customers, which increases your costs.
With RaaS and HaaS, customers are benefiting from newer technologies on more consistent cycles. This means their support needs won’t be as great, as the solutions will be newer, better performing, and more reliable. This frees up your team to focus on keeping up with other types of requests and making progress on other strategic goals.
Service and Support Can Be Bundled In
With any hardware or robotics program, service contracts and support are always a consideration. But different procurement approaches lead to different service arrangements. The last thing you or your reseller partners need is complexity and strained relationships. With As-a-Service models, maintenance and support can be bundled into the customer’s contract — giving them peace of mind in knowing that their solutions will be supported whenever they need it, and that you and your reseller partners are looking out for them.
Learn How RaaS and HaaS Can Benefit Your Business
River Capital has been partnering with robotics and hardware manufacturers, resellers, and end-users for more than 30 years. In every relationship, our approach ensures virtually any challenge or concern can be easily overcome, providing customers with short- and long-term benefits that keep them coming back.
If you’d like to learn more about how we can support your robotics or hardware manufacturer business, fill out the form below to get in touch with us. We’ll be happy to walk through our RaaS and HaaS offering and answer any of your questions.