AutoStore launches pay per pick option and inks partnership agreement with THG Ingenuity

AutoStore reports that its fulfilment automation technology is now available as a pay per pick service.

It says that the new offering will enable a lower entry price point to help retailers meet the growing need for more efficient warehouse operations and faster customer delivery.  

AutoStore has also signed a global distribution partnership agreement with THG Ingenuity, part of THG, the direct-to-consumer digital brands group.

THG Ingenuity will provide AutoStore technology on a pay per pick model embedded alongside its proprietary warehouse management, courier and optimisation software.

“We have seen rising demand for volume-based pricing and more flexible payment terms for customers,” says 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.”

“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 fulfilment 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.

The new 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.

“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,” adds Gallemore.

AutoStore has 23 partnership agreements worldwide. THG Ingenuity is the first to be implemented on a pay per pick model.