Munich Re is entering into a strategic partnership with German industrial machine manufacturing group TRUMPF on a new service designed to make customers’ production processes more flexible and react faster to market changes.
By using a “pay-per-part model” customers are able to use a full-service laser machine without having to buy or lease any equipment and instead pay previously agreed price for each cut sheet metal part.
Munich Re acts as a business enabler of this model by financing the machine and bearing the investment risk.
IoT service provider and Munich Re subsidiary relayr provides the data analysis for the financing model while TRUMPF supplies customers with the machines for their factory lines and the corresponding software and services for manufacturing sheet metal parts.
Steel distributor Klöckner & Co will be a development partner of the business model.
Munich Re considers the pay-per-part model as a way for customers to gain access to the latest automated laser cutting technologies without the need for massive investment, and the production volume is easily adjustable based on demand.
“With this partnership, we are venturing into new business models more prominently than ever before,” said Mathias Kammüller, TRUMPF’s Group Managing Director and Chief Digital Officer.
“It is the first step towards providing our customers with an alternative to the traditional purchase of machines, enabling them to increase their production capacity without massive up- front investments.
“Furthermore, we believe that this offering will not only help our existing customers grow but also enable the acquisition of new customers.”
“The cooperation with TRUMPF is an outstanding example of how the combination of Munich Re Group’s various offerings – risk solutions, IoT technology and financing – makes it possible to develop innovative business models for the industry,” added Torsten Jeworrek, Member of the Board of Management of Munich Re.
“We are convinced that such partnerships represent a forward-looking response to the challenges of an increasingly dynamic market environment.”
Josef Brunner, CEO at relayr added, “We are excited to be part of this great partnership. Relayr provides the necessary IoT infrastructure and enables comprehensive data analysis and optimisation on which, in turn, the financing and guarantee model of the project is based.
“It is no longer enough for industrial companies to produce quality products. Business models must be transformed to remain future-proof. In taking this step, TRUMPF has demonstrated that it is future-oriented and prepared to explore innovative approaches to offer its customers entirely new opportunities.”