Pay-per-pick model rolls out
05 September 2019
Magazino has introduced a Pay-per-pick model for its autonomous picking robot. The cost works out at 6 cents per pick.
The German robotics startup Magazino has introduced a flexible performance-based pricing model for its mobile picking robot TORU. With the new “Pay-per-Pick” model, customers pay only for the work the robot actually did instead of an annual software license.
It gives customers a maximum of flexibility because it reduces the upfront investment and the risk during the starting phase of new projects or when demand declines. The robot TORU is specialised in autonomous picking, stowing and transporting individual items, like shoe boxes, in warehouses of online retailers or fulfillment providers.
Frederik Brantner, Co-Founder and CEO of Magazino says: “There is an enormous demand in the logistics market for a performance-based pricing. We are proud to offer not only a unique automation technology but also a payment model, that provides flexibility and planning reliability at the same time. Pay-per-pick goes way beyond of usual Software-as-a-Service models. We strongly belief, that flexibility becomes the most crucial asset for fulfillment operations in eCommerce.”
With the new pricing model, customers pay EUR55 for the robot and EUR 0,06 for each “pick” the robots do in the warehouse.
The use of TORU can reduce the cost-per-pick up to 40% compared to manual picking, says the firm.