AutoStore™ has announced that its industry-leading fulfillment automation technology, with more than 1,150 systems in operation worldwide, is now available as a pay-per-pick service. The new service model and partnership with THG Ingenuity will enable a lower entry price point to help retailers meet the growing need for more efficient warehouse operations and faster customer delivery. The model is based on an upfront payment for the warehouse grid infrastructure and a recurring subscription fee for robots, ports, and software based on order volume. This alternative pricing model can provide extra protection for customers and the ability to scale up or down with minimal effort. Read more below.
SINGAPORE – With over 1,150 systems in operation across the globe, AutoStore™ has announced that its leading fulfillment automation technology is now offered as a pay-per-pick service. The new product will allow retailers to meet the rising demand for more efficient warehouse operations and faster customer delivery at a lower entry price point.
A global distribution partnership agreement was also signed between AutoStore and THG Ingenuity, a division of THG PLC’s direct-to-consumer digital brands division. AutoStore’s addressable market will expand thanks to THG Ingenuity’s integration of AutoStore’s pay-per-pick technology with Ingenuity’s proprietary warehouse management, courier, and optimization software. In today’s presentation of financial results for the company’s fourth quarter of 2022, the new service model and partnership were announced.
“We have seen rising demand for volume-based pricing and more flexible payment terms for customers. Today, more than 80% of warehouses globally have no automation whatsoever. We believe that the pay-per-pick model will further differentiate us and our integrator partners in the market and unlock new demand for order-fulfillment automation. We are delighted to welcome THG Ingenuity to further enhance our partner network,” says Mats Hovland Vikse, CEO at AutoStore.
“AutoStore is already well-known to THG. Thus, we are very excited that THG Ingenuity now has the opportunity to step up as a partner to make the benefits of order-fulfillment automation easily accessible to our growing customer base and potential new markets, across a broad range of categories” says John Gallemore, Executive Director and Chief Operating Officer at THG.
An initial investment in the warehouse grid infrastructure and a subscription fee for robots, ports, and software that scales with order volume make up the new AutoStore pay-per-pick model. Twenty percent to forty percent of the typical total cost of grid infrastructure may be expected to be paid up front. AutoStore solutions, which are standard in the industry, are now more accessible to a wider variety of customers thanks to this technology’s adaptability.
“We look at the pay-per-pick model as a ‘win-win-win’ solution. As demand curves shift, this alternative pricing model can provide extra protection for customers and the ability to scale up or down with minimal effort. For us, and AutoStore, recurring subscriptions provide increased visibility and predictable revenue,” added Gallemore.
THG Ingenuity is the first of AutoStore’s 23 global partnerships to implement a pay-per-pick pricing structure. Every business associate and client can now take advantage of the upgraded service model.
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