Have you ever heard of Robots as a Service (RaaS)? While attending PackExpo International in Chicago, the Tutor Intelligence Team unveiled its robots as a service palletizing solution. As we conversed with hundreds of industry professionals, we asked them this very question. To our surprise, the answer was a resounding “no.”
Traditionally, when a plant manager wants to improve operational efficiency and reduce costs, they look to automation solutions. This might involve purchasing new machinery, such as case erectors, box-sealing machines, or label printer applicators. However, these machines often come with a high upfront cost. Given the substantial capital investment, the purchasing decision requires approval from higher-ups, often involving a lengthy process filled with red tape and and endless cycle of financial analysis to ensure a positive return on investment (ROI).
For many co-packing and co-manufacturing facilities, there simply isn’t a large enough capital budget to support such a significant expenditure. As a result, many plants find themselves stuck between a rock and a hard place. Automation is the ideal solution, but the costs are prohibitive.
This is where Robots as a Service (RaaS) comes in. Robots as a Service is revolutionizing manufacturing and supply chain operations.
What is Robots as a Service (RaaS)?
Robots as a Service is a business model that allows companies to access robotic devices through a subscription-based service, rather than paying one giant upfront cost for a piece of machinery. Instead of making a hefty capital investment, RaaS allows businesses to pay a monthly subscription fee that mimics traditional labor costs. This affordable automation model significantly reduces the financial risk and lowers the barrier to entry for companies looking to automate their operations. With RaaS, automation costs scale directly with demand, making it a flexible, cost-effective solution for growing businesses.
Benefits of RaaS for Manufacturing and Supply Chain Operations
As a leading RaaS provider, Tutor Intelligence offers a subscription-based automation service that provides flexible, SKU-flexible palletizing for just $14–$18 per hour of robot usage. Instead of paying for expensive capital equipment, our customers only pay a flat deployment fee and a per-hour fee based on their actual robot usage. This pay-as-you-go model offers businesses the flexibility to scale automation up or down according to their operational needs. It’s an especially attractive solution for co-packers, co-manufacturers, and third-party logistics providers (3PLs) who face unpredictable or fluctuating demand.
At Tutor Intelligence, we believe that RaaS is a game-changer for businesses looking to modernize their operations without the burden of large upfront investments. Our customers experience an average 30–40% reduction in operational costs, thanks to the fact that the cost per usage of our collaborative robots (co-bots) is much lower than the cost of traditional fully-loaded labor.
Why RaaS Makes Sense for Your Business
With Robots as a Service, both the customer and provider are fully invested in the success of each robot. If the robots aren’t delivering the desired results, the customer won’t use them, and the provider (Tutor) won’t profit. On the flip side, if the robots are performing well and consistently used, both the customer and Tutor benefit from the arrangement.
This model ensures that both parties are aligned on achieving operational efficiency, productivity, and cost reduction. Whether you’re in food packaging, consumer goods, or pharmaceuticals, RaaS offers an affordable, flexible, and scalable robotic automation solution for companies of all sizes.
At Pack Expo International 2024, many attendees were highly intrigued by the potential of Robots as a Service to transform their manufacturing processes and improve supply chain efficiency. Automation technology is now more accessible than ever, allowing companies to stay competitive and achieve significant cost savings. If you’re ready to learn more about how Robots as a Service can streamline your business, contact Tutor Intelligence today.
