Pay-per-use leasing of machines: remaining flexible

What has become common concerning carsharing and streaming in people’s private lives has now also been introduced into the pharmaceutical and biotech sectors by Körber: With its pay-per-use service, Körber offers pharmaceutical and biotech customers an innovative financing solution that enables companies to lease machines instead of buying them. Moreover, they only pay for the actual use of the machines. This gives companies a new degree of flexibility, as exemplified by a European pharmaceutical manufacturer.

As digitization spreads, the pay-per-use concept has long become part of our everyday life. As a result, carsharing apps are used to rent vehicles at short notice, a touch ID on a smartphone is all it takes to rent an e-bike, and movies and music can be streamed almost everywhere. Instead of having to buy their own cars, e-bikes, or blue-ray discs, customers only purchase the right to use products or services for a certain amount of time without having to buy the product itself.

The Business Area Pharma of the international technology group Körber has adapted this concept for a use-based financing service. It is one of the first suppliers of machines and facilities for the pharmaceutical sector to do so. The innovative financing model helps companies improve their liquidity because they no longer have to buy machines. They lease them instead and only have to pay for their use in line with their actual production volume. “At our Business Area, this financing model is currently especially in demand for Track & Trace solutions. However, the pay-per-use service is available for almost any machine from our entire portfolio,” says Christian Frenz, Area Sales Manager at Körber. It makes companies extremely flexible. In addition, it opens up new possibilities for machine procurement and creates more room for making other investments.

Maximum flexibility even during the term of the contract The average term of a pay-per-use leasing contract is around five years. It can adapt to individual needs. Once the contract expires, leasing customers can decide whether they would like to buy the machine at its residual value or return it to Körber. Companies can also buy the machine during the contract term and thus make it their property.

“This means that companies don’t have to make a final decision when they conclude a leasing agreement. They can respond to developments as needed throughout the entire term of the contract,” says Just. In a market environment that is characterized by complex manufacturing processes, declining numbers of units, and customized products, the pay-per-use service greatly reduces the risks customers face when they acquire a new machine. The use-based model keeps the leasing costs manageable and also enables them to be incorporated into the current annual budgets. In this way, Körber provides pharmaceutical companies with an alternative to the usual purchase of machines and has more flexibility to meet the sector’s current and future challenges.

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