Found in Robotics News & Content, with a score of 5.96
…model of asking customers to pay upfront capital costs (CapEx) for automation will not cut it for new incumbents. We were early proponents of robots-as-a-service (RaaS) — we don’t charge for hardware or software; we deliver services to customers and only charge them operating costs (OpEx). This year, with the toll of COVID-19 on global business, more companies than ever before are gravitating towards a pay-per-use model with no hefty upfront financial commitments. As companies’ revenues decline, this is going to become a permanent trend. We’ve seen startups switch from a software licensing business to a full-service business and adopting…
Found in Robotics News & Content, with a score of 5.18
…that Covid-19 has created an environment of uncertainty. “All capex that’s not fundamental is on hold right now,” one respondent said, while several others noted that their companies were “holding tight for now, until further clarity on recovery timing.” In considering which areas of the warehouse or DC they’d like to improve within the next two years, most respondents (69%) say warehouse capacity utilization, up from 61% who gave that answer last year. In addition, 51% of respondents want to improve picking efficiency and 56% are looking to update their order accuracy operations. Interest in labor reduction has decreased from…
Found in Robotics News & Content, with a score of 13.89
…a project by moving the cost from capital expenditure (capex) to operational expenditure (opex) budgets and allows for almost instant return on investment (ROI). For companies prioritizing innovation, RaaS represents a lower-risk option and a far easier implementation process, said ForwardX. “The opex versus capex tradeoff is now relatively common amongst RaaS providers, but the market now expects more than a simple financial twist,” declared Remy Glaisner, research director at IDC and lead for its Worldwide Robotics and Drones Strategies practice. “RaaS is primarily a transaction-based model for which each ‘transaction’ should reflect the creation of tangible business value for…
Found in Robotics News & Content, with a score of 9.13
…options for its solutions. Many retailers are understandably freezing CapEx due to circumstances beyond their control, and RaaS implementation models allow them to continue to lean forward with innovative technology that will serve their customers and their businesses now and in the future. Market trends, consumer behavior, and new competition have strained retail, e-commerce, grocery, convenience, and foodservice supply chains for several years. But, the impact of our current shared crisis on retail in general is unprecedented. According to Statistica1, in the first half of March sales for grocery and food delivery are up more than 40%, Amazon is up…
Found in Robotics News & Content, with a score of 5.65
…entrances into the ecosystem in the form of new, CAPEX-free actors and also opens the sector up for newer opportunities for a business model. This platform results in a size race and that causes a change in the model into a “winner-takes-all” model or a market that is concentrated with the emergence of business models that are crowdsourced. According to paper writers that are currently studying the sector, business models that allow anybody to undergo last-mile deliveries also play a role in opening the sector up to new models that are disruptive. 4. New Methods of Production New techniques that…
Found in Robotics News & Content, with a score of 3.38
…3PL is that you can avoid higher amounts of capex spend while still achieving the added reach or capacity you need,” say Saenz. “You can turn to a 3PL, adjust your operating costs, leverage their labor pool, and in most cases, their advanced technology capabilities.” Of course, 3PLs are also feeling the labor crunch, but because many 3PLs spread their labor across multiple clients, they tend to be well plugged into sources of labor and temporary staffing. “Turning to 3PLs is understandable in a tight labor market,” says Saenz. “It’s becoming harder and harder to find labor, especially for second…