The TRUMPF Group is entering into a strategic partnership with Munich Re to develop a pay-per-part model for factory machines, making production processes more flexible and enabling user companies to scale up or down more easily.

Munich Re finances the machinery and bears the resulting investment risk, with IoT provider, Relayr (itself a Munich Re company) providing the data analysis for the financing model. TRUMPF supplies customers with the required production components, namely the machines for their factory lines and the corresponding software and services for manufacturing sheet metal parts. Steel distributor, Klöckner & Co is also a partner.

As a part of the service offering, the production process is fully tailored to the customers’ requirements. The performance promise of the offering includes access to a fully automatic laser cutting machine, a storage system, the necessary service components, as well as equipment maintenance and the required raw materials.

It is hoped that the new pay-per-part model will offer companies in the sheet metal processing industry entirely new production opportunities, with the added benefit of insurance against the financial impact of potential production downtime.

"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," said Munich Re's Torsten Jeworrek. "We are convinced that such partnerships represent a forward-looking response to the challenges of an increasingly dynamic market environment."

"With this partnership, we are venturing into new business models more prominently than ever before," added Mathias Kammüller, group managing director and chief digital officer at TRUMPF Group. "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."

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