AutoStore has announced that its fulfilment automation technology is now available via a pay-per-pick service model.
The new service is intended to help firms use its technology with a reduced entry price point and support retailers to accommodate the increasing demands of the e-commerce industry, including faster customer deliveries and order fulfilment times.
AutoStore also signed a global distribution partnership agreement with THG Ingenuity, the end-to-end ecommerce platform provided by THG PLC, a direct-to-consumer digital brands group.
The agreement will involve THG Ingenuity providing AutoStore technology on a pay-per-pick basis, which will be embedded with Ingenuity’s proprietary warehouse management, courier and optimisation software. AutoStore hopes this will broaden its market reach.
“We have seen rising demand for volume-based pricing and more flexible payment terms for customers,” said Mats Hovland Vikse, CEO at AutoStore.
“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-fulfilment automation.
“We are delighted to welcome THG Ingenuity to further enhance our partner network.”
The pay-per-pick model works by charging an upfront fee for the warehouse grid infrastructure, with the addition of a recurring paid subscription for robots, ports and software based on individual customer needs.
The warehouse automation firm explained that it expects the initial cost of the grid infrastructure to be between 20 and 40% percent of the typical customer’s total cost.
“AutoStore is already well-known to THG,” said John Gallemore, executive director and chief operating officer at 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-fulfilment automation easily accessible to our growing customer base and potential new markets, across a broad range of categories.
“We look at the pay-per-pick model as a ‘win-win-win’ solution.”
The service was designed to facilitate users to change and scale their use of AutoStore’s solutions as business needs change.
Currently, AutoStore has 23 partnership agreements worldwide, with THG Ingenuity being the first to use its solutions through a pay-per-pick model.