THG Ingenuity partners with order-fulfilment solutions firm Autostore

By

Nigel TAYLOR

Published
Feb 17, 2023

Direct-to-consumer digital brands group THG’s Ingenuity division has signed a global distribution partnership agreement with AutoStore. It will provide the company’s technology on a pay-per-pick model embedded alongside Ingenuity’s proprietary warehouse management, courier and optimisation software.

Ingenuity becomes the first business to implement the new model, with the service enabling a lower entry price point “to help retailers meet the growing need for more efficient warehouse operations and faster customer delivery”.

The 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.

John Gallemore, COO at THG, said: “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.”

Mats Hovland Vikse, CEO at AutoStore, added: “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.”