Introducing a fee-based business model
In the traditional transaction-based business model, a supplier’s profits depend on the number of parts sold rather than on improvements in a machine’s performance. This, however, creates a fundamental conflict of interest, as longer component life means fewer sales for the supplier. SKF is now offering a forward-thinking, fee-based Rotating Equipment Performance (REP) service, in which both SKF as a supplier and its customers benefit from maximizing a machine’s productivity, reliability and efficiency.
The scope for performance improvement through fee-based business models has been enhanced by digitalization. SKF can provide inexpensive, easy-to-use condition monitoring units and automatic, fully integrated lubrication systems. These connect with the SKF Cloud and the customer’s existing production management system to generate useful real-time data that can be acted upon remotely.