Any investment in plants or machinery is highly capital intensive and the demand cannot always be estimated. The available capacity is very often too low or too high. Alternative solutions are to cooperate with specialized suppliers who offer the proper machines and services and provide these services to many clients. Thus, different capacity requirements can be balanced. Due to their specialization, these providers are able to offer superior quality. Usually the product is based on state-of-the-art technology. Compared to the traditional purchase model the collaboration model is completely different. This is valid from the customer view as well as from the supplier view.
From the provider’s perspective: transformation from a product to a service or system provider, involves higher risk, but also more potential and a long-term nature of the service agreement. From the customer’s perspective: from a purchase to a service agreement with service levels which are tailored to the business needs.