AutoStore™ just formalized what I’ve stated was coming in multiple articles and LinkedIn posts.
On August 12, AutoStore Holdings disclosed a strategic supply agreement with Amazon.com Services LLC, that was timed to land alongside its Q2 earnings release.
The agreement establishes a framework for global supply of AutoStore’s products to Amazon and defines terms for further procurement. The agreement has no purchasing commitments at this time.
Here’s the context the market is missing.
Back in May, 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.” I also reported that Amazon and AutoStore had explored an acquisition, and that it didn’t get done.
I can state that Amazon and AutoStore already have multiple projects underway and planned including the Amazon SuperCenter near Chicago, IL, and several planned installations at Whole Foods Stores currently under construction. I’ve already visited one location.
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 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 retailer interested in a solution from AutoStore, Attabotics, Ocado, or other micro-fulfillment vendors, should contact Matthew Chang, PE and Kate McAfoose, P.E., of Chang Robotics. Companies use Chang Robotics team of expert engineers to ensure that they’re designing their future with the automation and AI they need vs what they think they should buy. Big difference.
Congratulations are in order for Amazon and AutoStore formalizing their partnership.
#retail #logistics
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Original on LinkedIn: https://www.linkedin.com/posts/brittainladd_autostore-holdings-ltd-strategic-supply-activity-7493484795549659136-otUs?utm_source=combined_share_message&utm_medium=ios_app&rcm=ACoAAA_417cBovZsLTF-QChre8_Va0juuSibebU