AutoStore Introduces Pay-per-Pick Model

AutoStore™ has announced that its industry-leading fulfillment automation technology, with over 1,150 systems operational worldwide, is now available as a Pay-per-Pick model. The new offering allows for a lower entry price and helps retailers meet the growing demand for more efficient warehouse operations and faster customer deliveries.

(Mönchengladbach) AutoStore also signed a global distribution partnership with THG Ingenuity, part of THG PLC, the group for digital brands in direct sales. THG Ingenuity will offer the AutoStore technology as part of a Pay-per-Pick model along with its own warehouse management, courier, and optimization software, thereby expanding the addressable market for AutoStore. The new service model and partnership were announced on February 16 during the presentation of the fourth quarter 2022 financial results.

“We have seen an increasing demand for volume-based pricing and flexible payment terms for customers. Today, more than 80% of warehouses worldwide have no automation. We believe that the Pay-per-Pick model will further differentiate us and our integration partners in the market and create new demand for order fulfillment automation,” says Mats Hovland Vikse, CEO of AutoStore.

“AutoStore is already known at THG. We are therefore very pleased that THG Ingenuity now has the opportunity to act as a partner to make the benefits of order fulfillment automation easily accessible to our growing customer base and potential new markets across a variety of categories,” says John Gallemore, Executive Director and Chief Operating Officer at THG.

“We are excited that THG Ingenuity is expanding our partner network,” says Vikse.

The new AutoStore Pay-per-Pick model is based on an upfront payment for the grid’s warehouse infrastructure and a recurring subscription fee for robots, ports, and software based on order volume. The upfront payment for the grid infrastructure is expected to account for between 20 and 40 percent of typical total costs. The industry-standard AutoStore solutions will not only be made accessible to a broader range of potential customers, but the technology is also easily scalable as a company’s requirements change.

“We see the Pay-per-Pick model as a ‘win-win-win’ solution. As demand curves shift, this alternative pricing model provides additional protection for customers and the ability to expand or reduce offerings with minimal effort. For us and AutoStore, recurring subscriptions offer more transparency and predictable revenue,” Gallemore adds.

AutoStore has completed 23 partnership agreements worldwide; THG Ingenuity is the first to be implemented under a Pay-per-Pick model. The new service model is available to all partners and customers.

Photo: © AutoStore