Sustainable Innovation

Why buy ? Leasing is the future !

Customers want no hassle, no upfront costs, up-to-date and high quality products. Products As A Service’ (PAAS) become increasingly popular and respond to some of these needs.

What is a ‘Product As A Service ? PAAS is a creative derivation of the ICT word  ‘Software As A Service’.  Instead of becoming the owner of a new product or service,  you just rent and ‘pay as you go’. Take for instance : an online CRM system paid on a monthly base.

PAAS can be found in all industries : Take the machines you can find at the office : copy, coca cola and coffee machines can be rented instead of buying the equipment representing substantial CAPEX. Dresses, costumes, shoes can be rented for special occasions. Michelins offers tyre-services to its lorry transportation customers, taking care of the tyres and the maintenance whilst customers pay for the transported kilometers. Property developers rent instead of sell their office and retail properties. Philips pilots a new ‘pay per lux’ service : customer like the architect agency of Thomas Rau profit from up-to-date high quality LED lighting without the hassle of installation and maintenance. 

Customer advantages of PAAS are numerous : No need to pay high upfront costs : just pay as you go. No need repair the product yourself : just ask the owner. No hassle to get the latest version : the supplier will take care of. And if you do not use the product any more  : the supplier will come and take it back.  

Environmental advantages of PAAS are obvious : By optimising the use of high-quality products, they can be kept operational for a longer period of time. In this model, suppliers and customers extend the lifetime of products, use less separate products and create a smaller environmental footprint.

In the ideal situation the supplier takes back the product and closes the product life cycle by using components as raw materials for new products – just as The Van Gansewinkel Group demonstrates.

– Thanks to Mirjam Kibbeling for our exchanges –