In 2020, I recommended to Amazon and AutoStore™ to form a partnership. Amazon resisted. They wanted to build their own system. They failed. Amazon and AutoStore started to work together and both companies realized the value to each other. I wrote multiple posts outlining that the relationship was increasing.
Earlier this year, I reported that AutoStore’s Chief Commercial Officer, Keith White, had spent weeks with Amazon in December negotiating terms, strategy, and estimated system purchases. A source at the time put eventual volume by 2030 in the “double digits.” Amazon negotiated the right to do their own installations of AutoStore. I also reported that Amazon and AutoStore had explored an acquisition, and that it didn’t get done. ❌ and ❌❌
On August 12, AutoStore Holdings disclosed a strategic supply agreement with Amazon.com Services LLC. Amazon and AutoStore have officially partnered. I congratulate both companies.
The agreement establishes a framework for global supply of AutoStore’s products to Amazon, and defines terms for further procurement.
I can state that Amazon and AutoStore already have multiple projects underway and planned, including installations at Amazon logistics facilities, the Amazon SuperCenter near Chicago, IL, and several planned installations at Whole Foods Stores currently under construction.
I must also state that Amazon can utilize the agreement with AutoStore, to install AutoStore’s system at companies that hire Amazon to run their supply chain and logistics. This is huge.
This is a wake up call for Target, Walmart, and certainly Kroger. Each of these retailers should have already installed AutoStore’s grid system inside select stores.
Another option worth exploring for retailers and companies across different industries, is the Attabotics system that is offered via Lafayette Engineering, Inc.
What remains to be seen is what will Ocado Group release to the market. Ocado is piloting Store Based Automation, which is a miniature version of its advanced Customer Fulfillment Centers. Ocado’s SBA solution can be installed inside stores or operate as standalone locations.
Word of advice: Any company interested in a solution from AutoStore, Attabotics, Ocado, or other automation vendors, should contact Matthew Chang, PE and Kate McAfoose, P.E., of Chang Robotics. Chang Robotics team of expert engineers ensure companies that they’re designing their future with the automation and AI they legitimately need. Chang Robotics designs manufacturing plants and warehouses for automation. Chang Robotics can design customized solutions and install systems from the leading automation vendors.
Blue Collar Robotics continues to perfect their purpose-built instore picking robots that retailers can utilize to fulfill orders with no upfront capital requirements.
Will Amazon acquire AutoStore like they acquired Kiva? ❌❌❌
#retail #logistics
https://lnkd.in/gqcmHKPf