An agreement between AutoStore and THG Ingenuity – a technology, digital services, and logistics provider – will see AutoStore systems available to customers on a pay-per-pick model.
The technology will be embedded alongside THG Ingenuity’s proprietary warehouse management, courier, and optimisation software. AutoStore claims that the pay-per-pick model will ‘enable a lower entry price point to help retailers meet the growing need for more efficient warehouse operations and faster customer delivery’.
John Gallemore, Executive Director and Chief Operating Officer at THG, said : “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.”
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. AutoStore claims that this upfront payment will typically account for 20-40% of the total cost.
AutoStore Chief Executive Mats Hovland Vikse said: “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 fulfilment automation.”
AutoStore says that the new service model is available to all partners and customers.
AutoStore (stand i400) will be at IntraLogisteX on 28-29 March 2023 at the NEC Birmingham. For more information, visit www.intralogistex.co.uk.