In the packaging industry, the focus of machine builders is shifting from machine sales to service sales. This requires them to think beyond the traditional product offering and step into the shoes of their customers. VH Vertical Packaging, JASA and Repak share their vision.
The majority of profits in the future will come from selling services. Selling services can help machine builders stable and recurring income This reduces the risks of the low margins in traditional machine sales. In addition, this focus on service will boost customer satisfaction.
What does the future of the packaging industry look like?
The future of the packaging industry will look very different in 10 years anyway. Servitization will cause a major change in the market. The way you respond to this can contribute to your distinctivenessIn any case, it is important to understand the needs of your customers in order to provide value-added service.
In the future, the majority of profits in mechanical engineering will come from service.
Eelco van Schaik, Area Sales Manager at Repak, explains how they approach this: “We are in the exploratory phase and are busy with customer conversations to inventory what customers expect from our service.” This information helps to take the first steps towards new service models. “I think that packaging as a service can become a common business model in the future. Monitor how many products you pack and invoice accordingly.” VH Vertical Packaging believes it is important that both the customer and themselves generate returns through service. They want to offer the customer a platform that allows them to to relieve and with which they can provide service based on data. “If the customer sees the added value of this because his production line will run better, he is also prepared to pay for it,” says Freek Jacobs, Managing Director at VH Vertical Packaging. He continues: “In a few years, the operator will be able to replace parts himself based on tracked data. There will be a shift from field to desk engineers. These desk engineers can solve problems remotely based on data and translate this into R&D so that they can structurally improve the machine.”
What plans do machine builders have in the field of service?
VH Vertical sees that the service level must increase in the future. Freek explains: “If a malfunction is found to have a bottleneck in the packaging machine, we must remote login on the machine to see what is going on. We also monitor the machine performance and approach the customer proactively with an action plan.” “Every customer is enthusiastic when we say that we can ensure that the uptime remains high. However, we have to show the customer that we do not use the machine data to prevent downtime. We already do that anyway. We have to show that we use data to continuously improve the monitor and optimize performance.”
Eelco notices that companies increasingly ask for Repak's service after delivery of the machine. Continuity is essential here. "At the moment we offer standard remote monitoring and preventive maintenance. This is the first step. Zero downtime is our goal. A line should run and deliver output as much as possible. Data provides insight into the overall OEE performance for our customers' production processes." JASA Packaging Solutions also notices that it is crucial to monitor the performance of spare parts to monitor, because this leads to less downtime. “With these insights, we can proactively contact the customer and increase customer satisfaction,” says Joost Breed, Software Developer at JASA.
Online portal essential for service provision
It is crucial to have a customer facing portal to meet the growing service needs of your customer. In this portal, you can manage the entire machine fleet. Both JASA Packaging Solutions, VH Vertical and Repak already have an idea of how they want to use this. “Our bigger goal is a kind of JASA portal for both the customer and ourselves. Here, the customer can data such as meter readings see. We can see when spare parts need to be replaced. Ultimately, we want to achieve that the customer can even order the parts directly via our portal. IXON offers us these possibilities,” says Joost Breed. VH Vertical wants customers to be able to log in to the machine themselves via their portal. “With IXON Cloud, we have a portal with extensive user management and custom options. Here we can translate data into a view that is clear to the customer,” says Freek. These data insights help customers to train their staff on this basis, for example.
For Repak it is essential that the output is measured accurately and is transparent. “We chose IXON because they understand the business of mechanical engineering and can support us in our issue,” says Eelco.
In the future, the majority of profits in mechanical engineering will come from service.
Eelco van Schaik, Area Sales Manager at Repak, explains how they approach this: “We are in the exploratory phase and are busy with customer conversations to inventory what customers expect from our service.” This information helps to take the first steps towards new service models. “I think that packaging as a service can become a common business model in the future. Monitor how many products you pack and invoice accordingly.” VH Vertical Packaging believes it is important that both the customer and themselves generate returns through service. They want to offer the customer a platform that allows them to to relieve and with which they can provide service based on data. “If the customer sees the added value of this because his production line will run better, he is also prepared to pay for it,” says Freek Jacobs, Managing Director at VH Vertical Packaging. He continues: “In a few years, the operator will be able to replace parts himself based on tracked data. There will be a shift from field to desk engineers. These desk engineers can solve problems remotely based on data and translate this into R&D so that they can structurally improve the machine.”
Eelco notices that companies increasingly ask for Repak's service after delivery of the machine. Continuity is essential here. "At the moment we offer standard remote monitoring and preventive maintenance. This is the first step. Zero downtime is our goal. A line should run and deliver output as much as possible. Data provides insight into the overall OEE performance for our customers' production processes." JASA Packaging Solutions also notices that it is crucial to monitor the performance of spare parts to monitor, because this leads to less downtime. “With these insights, we can proactively contact the customer and increase customer satisfaction,” says Joost Breed, Software Developer at JASA.
For Repak it is essential that the output is measured accurately and is transparent. “We chose IXON because they understand the business of mechanical engineering and can support us in our issue,” says Eelco.
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