AutoStore has signed a strategic supply agreement with Amazon, establishing a framework through which the e-commerce giant can procure AutoStore automation systems globally.
The agreement sets out terms for the future supply of AutoStore products and solutions to Amazon, potentially expanding the relationship between two of the biggest names in warehouse automation and e-commerce fulfillment.
However, AutoStore emphasized that the agreement does not currently commit Amazon to purchasing any particular quantity of equipment.
The company says: “Whilst the Agreement defines the terms for further procurement of AutoStore systems by Amazon, it does not contain any purchasing commitments at this time.”
No financial terms, potential order volumes, deployment locations or timetable for future installations were disclosed.
AutoStore also declined to provide additional details beyond its short announcement.
The agreement is nevertheless notable given the enormous scale of Amazon’s fulfillment and logistics operations and its extensive use of robotics and automation across its global distribution network.
For AutoStore, the agreement creates an established commercial framework under which future systems could be supplied without the companies having to negotiate the underlying terms of the relationship for each procurement.
AutoStore develops automated storage and retrieval systems in which robots travel across the top of a dense aluminum storage grid, retrieving inventory bins and delivering them to workstations for picking and replenishment.
The Norwegian company has expanded significantly as retailers, logistics companies and manufacturers have invested in higher-density automated fulfillment. AutoStore says approximately 2,000 of its systems are now installed across 68 countries.
The company increasingly describes its offering in terms of “Intelligent Fulfillment”, combining automation, software and AI to manage and optimize fulfillment operations.
The strategic supply agreement with Amazon was announced on August 13, with AutoStore classifying the development as inside information under the EU Market Abuse Regulation.
While the announcement stops well short of confirming a major Amazon order, it establishes the mechanism through which considerably larger deployments could follow.
