Servitization Example: Koolmill Systems

Koolmill Systems uses servitization to access global markets with sustainable food production.

UK-based SME, Koolmill Systems, has combined the powers of servitization and disruptive technology to help feed a growing global population as well as giving the business a competitive edge. The company gives customers across the world access to transformative techniques through its milling-as-a-service business model. The low-power waste-saving system is designed to empower small-scale milling operations and revolutionise cereal production.

The family-owned company was founded in 1988 as a cereal milling machine manufacturer. Founder Alec Anderson is passionate about the need to drive output and efficiencies in cereal production. He has collaborated with global partners to develop pioneering displacement technology which allows rice to be milled by using less energy and generating less waste.

Koolmill’s technology reduces the cost per tonne milled by up to 63% and drastically cuts processing losses. Its equipment exceeds the capabilities of any of its competition, with a far superior conversion of paddy to high quality rice.

However, Koolmill’s equipment is significantly more expensive than that of its competitors and when it comes to the global export market, that presents a significant barrier to entry. As a result, Koolmill set about developing an outcome-based business model which shifts the focus away from one-off cost to shared value.

Koolmill’s servitized business model breaks down barriers to export and provides a vehicle for smallscale millers in low-income economies to share in the benefits of more effective and efficient technology.

To read more about Koolmill’ servitization journey, download the full case study.