Pay-Per-Pick fulfilment automation service launches
DIGITAL SERVICES and logistics provider THG Ingenuity has signed a global distribution partnership agreement with AutoStore to provide automated fulfilment systems on a pay-per-pick model.
The new offering is designed to enable a lower entry price point to help retailers meet the growing need for more efficient warehouse operations and faster customer delivery.
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THG Ingenuity will provide AutoStore technology on a pay-per-pick model embedded alongside Ingenuity’s proprietary warehouse management, courier and optimisation software, broadening the addressable market for AutoStore.
What the partners are saying
AutoStore CEO Mats Hovland Vikse says: “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.”
THG executive director and chief operating officer John Gallemore, adds: “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.”
The details
The new AutoStore pay-per-pick 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. The upfront payment for grid infrastructure is expected to be between 20-40% of the typical total cost. The technology is scalable.
Subscriptions
“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.
AutoStore has 23 partnership agreements worldwide; THG Ingenuity is the first to be implemented on a pay-per-pick model. The new service model is available to all partners and customers.
For more information, visit www.autostoresystem.com
