• A nascent market with accelerating growth; 2019 G2P market forecast at c. $400-500m, up from c. $250m in 2018 • The market was boosted by single G2P deal - XPO’s purchase of 5,000 AMR’s • Amazon’s support for Kiva Systems expired in 2018 and may have flattered the North American G2P market • More G2P competitors in all segments; ASRS suppliers mainly focus on online grocery fulfilment; hybrids appearing

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ECOMMERCE WAREHOUSE FULFILMENT AUTOMATION FULFILMENT WAREHOUSE ECOMMERCE GOODS TO PERSON TO GOODS G2P ROBOTICS G2P __ 2019 v1.1 Published by STIQ Ltd, United Kingdom www.styleintelligence.com 1 of 36 What some of our readers said General approach and Content CONTENT about the 2018 report; feedback methodology for STIQ reports STIQ appreciates all feedback! STIQ uses a combination of secondary and Content Page To leave your feedback for this report primary research to create its reports. follow this link (anonymous option) Our background is in advising venture The Big Bang 3 capital & private equity on origination, Responsible for this report: “Your 2018 Goods to Person investment appraisals (Commercial Due Suppliers 4 Robotics report was a very good Diligence) and portfolio strategy. Thomas Andersson Funding 6 Senior Retail Technology Analyst piece of work. We are looking [email protected] forward to the 2019 version.” M&A 7 +44 7870 210529 [Teradyne Inc] Acronyms & definitions used in this document: Market Drivers 8 “Very well written.” [EQT China 12 • AMR; Autonomous Mobile Robot Partners] • PA-AMR; Picking Assistant AMR Market Size 13 • ASRS; Automatic Storage & Retrieval “We purchased another report but System Market Growth 14 think yours is better and more • FBA; Fulfilled By Amazon • AMR 15 relevant.” [Supplier] • MVP; Minimum Viable Product • POC; Proof Of Concept • PA-AMR 16 • RMS; Robotics Management System “I was wondering how 6 River • UPH; Units Per Hour • ASRS 17 Systems could offer such a high • WMS; Warehouse Management quality download from their System G2P > G2R 18 website.” [Kollmorgen] • WES; Warehouse Execution System ROI 19 “This is a very good piece of Company profiles 21 work.” [Credit Suisse] What does a ✓ mean? Respondents 35 “Very well documented report, A green tick indicates STIQ has spoken to About STIQ 36 providing valuable insights into one or more representatives of a G2P different players, technologies supplier. A red X indicate the supplier and strategies deployed. Quotes declined to be interviewed at this time. The tick only appears in the company from key players help to define profile section. market dynamics. Not only very easy to read but also enjoyable. Disclaimer This document does not constitute investment advice. Whilst the analysis presented is based on interviews with a large number of suppliers & experts, extensive desk research and industry knowledge STIQ Great work!” [STIQ Website] cannot and does not guarantee the accuracy of the contents in this free report.

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 2 STIQ analysed Amazon’s Kiva At what point will other suppliers “Amazon may not want to pick a THE BIG BANG processes in more detail in the reach Kiva’s 2012 maturity? fight with Alibaba, JD.com and so 2018 G2P report Amazon has had seven years to develop on. These guys have invested Kiva Systems in a live, high volume and Download STIQ’s 2018 G2P Robotics heavily in the Chinese AMR hermetically sealed PR environment. report here. This goes into more detail on companies. I doubt Amazon will Kiva & Amazon. Whilst other suppliers of AMR’s may want to escalate this.” [G2P struggle to reach the same functionality & Supplier] Amazon acquired efficiencies as Amazon Robotics, they will have the advantage of looking at how Amazon has developed their AMR’s. “The key Kiva patent expires in Kiva Systems for 2027. However, we have seen a few AMR’s entering the US an estimated 8X market, challenging the very broad descriptions in that patent. revenue in 2012 Source: Styleintelligence 2018 The difference is that Kivas IP Robotics are important, but only portfolio is now owned by make up a part of the Amazon Amazon, of course.” [Anonymous] Amazon has since warehouse arsenal deployed >150,000 robots Following its acquisition of Kiva Systems in End-of Kiva Systems support 2012 for $775m, Amazon has deployed an Amazon has supported Kiva’s pre-2012 and developed pallet estimated 150,000+ robots throughout its customers up to 2018 incl. with software warehouse estate (STIQ interviews). carrying AMR’s… among and parts. other things However, Amazon’s warehouses are Image: Amazon. Robotics engineer wearing an active The Amazon-Kiva support expired in 2018 made up from a mix of manual & belt, alerting robots to avoid the area. and may have temporarily boosted the US automated environments as exemplified Chinese suppliers of AMR’s have realised market for G2P robotics. The success of Kiva Systems has by Amazon’s recent purchase of 1,000 they need a wider range of products and spread through the Boston & US Very Narrow Aisle forklifts from a have diverted from the Amazon blueprint. However, STIQ’s impression is that it has robotics ecosystem and many of the European manufacturer (Source: STIQ Will Amazon pursue legal action? invited suppliers, previously absent from interviews – which may indicate a growing US G2P vendors have one or more the market. There are now several importance of the ‘Amazon for Business’ An absence of AMR’s from the US market ex-Kiva staff competitors with US offices that opened division and/or increasingly larger item has largely been attributed to Amazon’s IP throughout 2018 or planned offices. picks – items which do not fit in the Kiva library acquired with Kiva Systems. pods/shelves). The Kiva System patents expire in 2027. The increasing number of AMR suppliers “Kiva revolutionised the online now openly selling into the US market fulfilment space with the goods to pose a big question regarding what, if any, person concept.” [6 River Systems] action Amazon might take.

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 3 STIQ identified 38 suppliers in Companies profiled within this report Shades of warehouse 2019, up from 24 in 2018 have been selected on the basis that they SUPPLIERS offer at least one Goods to Person The volume of G2P suppliers covered have robotics product and sell to, or target, Dark Hybrid Co-bot ASRS AMR PA-AMR increased from 24 in 2018 to 38 in 2019. A ecommerce warehouse customers. A The three types of G2P robotics; AMR, PA- partial explanation for this is that a number of companies, for example AMR & ASRS fit broadly within three types number of companies have emerged from Berkshire Grey, does not fit neatly in one of warehouses. PA-AMR’s are designed to stealth mode and definitions used have of these segments. G2P Definition broadened. operate in the same space as people. ASRS (9) AMR (13) PA-AMR (16) • AutoStore • Eiratech • 6 River Systems The broad G2P Robotics • Ocado Technologies • Scallog • Locus Robotics • Alert Innovation (New) • Geek+ • Fetch Robotics definition include systems • ATTAbotics (New) • Flashhold/Quicktron • iFuture Robotics which store & retrieve • Cleveron (New) • GreyOrange • IAM • Exotec (moved) • Swisslog • MIR merchandise and/or assist • CommonSense (moved) • HIK Vision • InVia in the picking process and • Takeoff Technologies (New) • Prime Robotics (Name change) • Canvas Technology • Opex Corporation • Caja Systems (New) • Magazino deliver to a staging area • Myrmex (New) • Vecna • Malu Innovation (New) • Syrius Robotics (New) for packing & dispatch. The • Grenzebach (New) • NextShift (New) operator at a staging area • Aresbots (New) • Alog Tech (New) • BionicHIVE (New) may be a person. • Berkshire Grey (New) • Intelligent Robots (New) IFR defines these robotics Additions & removals (+4) Additions & removals (+5/-3) Additions & removals (+6/-2) as “Service Robots” (source). Additional companies covered in the 2019 Additional companies covered in the 2019 Additional companies covered in the 2019 version include [+]: version include [+]: version include [+]: • Alert Innovation (US) • Caja Systems (Israel) • Syrius Robotics (China) However, the market is • ATTAbotics (Canada) • Malu Innovation (China) • NextShift (US) • Cleveron (Estonia) • Myrmex (US) • Alog Tech (India) nascent and changing fast • Takeoff Technologies (US) • Grenzebach (Germany) • BionicHIVE (Israel) • Aresbots (China) • Berkshire Grey (US) Companies removed [-]: • Prime Robotics (US) – Name change • Intelligent Robots (UK)

Companies removed [-]: Companies removed [-]: • Amazon Robotics (Kiva Robotics) • Clearpath • MaroRobotTech • Ascend Robotics • Hi-Tech Robotics Systemz Published by STIQ Ltd, United Kingdom www.styleintelligence.com 4 PA-AMR’s dominate in North Why is there a lack of ASRS However, despite high-level backing, the America; Amazon to blame? manufacturers in Asia? domestic market lacks size and demand is SUPPLIERS subdued, partly due to relatively low STIQ was unable to identify any G2P ASRS salaries for warehouse workers. G2P suppliers by type & continent manufacturers in Asia despite the region’s ASRS reputation for automation. We expect this As a result, many of the Asian 15 to change in the short term as the cost of AMR manufacturers are looking to Europe and 13 warehousing space increase. North America for additional sales. PA-AMR 4 There are, however, a large number of 5 9 2 AMR manufacturers in the region. The G2P suppliers in 2018 vs 2019 report 38 reason for this is likely to be the success of PA-AMR Amazon Robotics (Kiva Systems) AMR 9 6 4 combined with government (in particular ASRS 9 in China) incentives for robotics and AI. Geographic 24 4 13 3 One major difference between Asian 4 demarcations by AMR’s and others is the often wide range Asia Europe North America on offer by Asian suppliers. 10 Source: Crunchbase, STIQ research & analysis types of G2P Many of the Chinese manufacturers are 16 Geographical demarcations exist in the backed by the large ecommerce retailers 10 robotics G2P sector. PA-AMR’s are most prevalent of Alibaba or JD.com. in North America while AMR’s dominate 2018 2019 the Asian market. ASRS systems are predominantly based in Europe. Geographic spread of G2P suppliers, by type Ocado Technology AutoStore MIR Geek+ Root causes: IP, legacy and The lack of AMR’s in North America is Intelligent Robots Flashhold most likely due to Amazon’s patents from Cleveron HIK Robotics labour cost differences Eiratech Malu Innovation its acquisition of Kiva Systems in 2012. Swisslog Aresbot Grenzebach STIQ suggests this may also be the reason Alert Innovation Exotec Syrius Magazino for the high prevalence of PA-AMR’s in Takeoff Technologies Scallog the North American market. ATTAbotics OPEX CommonSense Prime Robotics AutoStore more or less created the cube Caja Systems Myrmex BionicHIVE storage G2P ASRS category. A number of 6 River Systems iFuture Robotics other G2P ASRS start-ups have joined the Locus Fetch Robotics Alog Tech category. The more established shuttle Canvas Technology manufacturers have also joined in, IAM Robotics creating or adopting systems suitable for Vecna Robotics GreyOrange single item picking. inVia Robotics NextShift Berkshire Grey ASRS AMR PA-AMR Source: STIQ research & analysis Published by STIQ Ltd, United Kingdom www.styleintelligence.com 5 Start-up activity peaked in the Known funds raised, 2014-18 ($m) Two Asian companies accounted for 100% FUNDING aftermath of the Kiva acquisition of total AMR funding in 2018: 450.5 • Geek+ (China) raised $150m in a round Start-up activity peaked in the four years ASRS led by Warburg Pincus (Walmart- following Amazon’s acquisition of Kiva AMR owned Flipkart contributed to the Systems. PA-AMR round) STIQ’s analysis is that the higher gross 208.1 Activity in 2017 and 2018 has been driven margins achievable in international by two spin-outs (Prime Robotics and markets attracted investors and we Vecna Robotics) and one Chinese start-up have noticed a sharp increase in (Syrius). 62.5 32.9 Geek+’s international marketing # Start-ups 1.5 activities as a result The G2P sector PA-AMR • GreyOrange (Singapore) raised $140m AMR 9 2014 2015 2016 2017 2018 in a round led by Mithril Capital. The ASRS Source: Crunchbase, STIQ research & analysis raised $450m in 7 raise was announced 2 weeks prior to 6 ASRS funding jumped c. 575% between the company revealing the single 5 2017 and 2018. Part of the reason for this largest order for AMR’s globally to date 2018; up 120% (by XPO) 3 may be attributed to EQT’s acquisition of a 2 majority stake in AutoStore in 2017. STIQ’s analysis of the order is that XPO 1 1 1 may have had exposure to Amazon Geek+ & GreyOrange raised a Robotics and recognise the benefits of Two Asian AMR the system. Media (source) have

combined $290m speculated Amazon was an XPO client

2012 2013 2014 2015 2016 2017 2018 manufacturers raised a 2011 <=2010 which terminated their contract in combined $290m in 2018 Source: STIQ Research & Analysis G2P known funds raised in 2018 ($m) 2018. As such, XPO’s purchase of 5,000 However, fundraising accelerate in 2017 AMR’s may represent an attempt at and 2018, which may drive further start- creating an FBA clone up activity in the next coming few years. ASRS Gossip: STIQ understands one AMR The RaaS business model is highly supplier is currently aiming for a G2P robotics attracted c. $451m PA-AMR capital intensive fundraise which would dwarf any funding in 2018, up 120% yoy The RaaS model is very popular and the individual raises to date bulk of suppliers offer this as an option. G2P robotics attracted significant interest However, this is a highly capital-intensive

in 2018 and total publicly released funding business model which requires

150 140 25 20 20 15

17.7 5.8 12.5 5.8 1.2 reached a new record at $450.5m, 24.8 increasingly large funding rounds as order representing an increase of circa 120% sizes increase. European suppliers are

from $208.1m in 2017. having some issues with accessing venture

Geek+ Exotec

Takeoff… capital.

Magazino ATTAbotics

Approximately 64% of all G2P funding in GreyOrange

IAM Robotics IAM inVia Robotics inVia

6 River System River 6 “There are a lot of VC’s out there,

CommonSense… Syrius Robotics Syrius 2018 was raised by AMR companies, circa Robotics Vecna 23% by PA-AMR and 13% by ASRS. Source: Crunchbase, STIQ research & analysis however, only a handful of them invest in hardware.” [Anonymous]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 6 Teradyne paid $197m for MiR in acquired HighJump, a WMS vendor, in M&A Apr 2018 at an estimated 7X 2017 (previous owners included Accel- + revenue KKR). Körber also acquired a minority stake in Magazino in 2018. Teradyne [NYSE:TER] acquired MiR (PA- AMR, Denmark) for $197m in April, 2018. STIQ expects VC investment activity in the G2P sector to remain high in 2019 with a + Three years earlier, in 2015, Teradyne potential for consolidation between acquired Universal Robots (articulated In common for MiR & AutoStore is segment players (PA-AMR + AMR or arms), another Danish robotics company, AMR+ASRS, etc). Consolidation could the distributor/ partnership route for $285m. improve the potential for selling in a wider Two major to market range of products to clients and create MiR increased revenue from $12m in The two acquisitions, MiR and AutoStore, R&D efficiencies (such as Swisslog’s 2017 to $31m in 2018 with forecasts business model) acquisitions in the both focus on technology development growth up to 50-100% to 2022. and rely on partners and distributors to promote and sell their products. Selected M&A: G2P sector since “MiR will be continue to operate • 2018; MiR (Teradyne, $197m); STIQ has noticed an underlying trend as an independent company. They Auresbot (Megvii, unknown) 2016 at 7-8X among G2P competitors to partner with were a success even before we • 2016; AutoStore (EQT, est. $470m) sales channels. Whilst this is not • 2015; Magazino (Siemens ‘VC’, n/a) acquired them, growing revenue • 2014; Swisslog (KUKA, $357m) revenue pronounced at the moment, we expect from $12m in 2017 to $31m in the partner route to market to grow in • 2012; Kiva Systems (Amazon, $775m) importance in the short term. 2018. We will enable them to • 2010; Ocado (IPO, ev. $1.5bn) continue this high growth, In 2016, EQT acquired 82% of globally.” [Teradyne] A rumoured IPO may add further A focus on R&D and using AutoStore, valuing the company at competitive pressures channel partnerships to c. 8X revenue It should be noted that only a small part of MiR’s revenue originates from Megvii, the parent company of Aresbot, is reach customers – in Breakit, the Swedish technology ecommerce warehouse applications. rumoured to be considering an IPO in common for both publication, speculated the price EQT paid AutoStore has a far higher revenue Hong Kong. Alibaba is a backer of Megvii. for AutoStore was SEK4bn (on SEK500m concentration in ecommerce warehouse A successful IPO could potentially add acquisitions revenue - source). applications. further competitive pressures in Europe The wider automation sector is and North America. Aresbot is currently The company has advised STIQ their focusing on Asia/China markets. revenue for 2018 was NOK1.2bn “hot” and STIQ expects further high levels of M&A activity The G2P sector is part of a larger market which also experience high levels of M&A.

For example, Körber, a global industrial automation company (€2.6bn revenue),

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 7 The success of Amazon Robotics G2P market drivers MARKET drives growth in the G2P sector Driver Sub Driver Description Impact Amazon • Amazon is thought to have deployed in success Market pull; “>100,000 Kiva deployments can’t be wrong” excess of 150,000 AMR’s in the seven Online retail • Continued growth in ecommerce as a share of all retail will DRIVERS years since they acquired Kiva Systems. growth drive demand for faster & better warehouse fulfilment options Ecommerce G2P suppliers agree that Amazon has only Property • A lack of suitable property may dampen uptake of G2P robotics been a positive market driver and Service • Increased competition among 3PL’s have reduced their appetite showcase the benefits of robotics. providers for investments Continued “Amazon Robotics is a good thing. Access to • Labour shortages during peak & campaigns Human labour • General access to labour They are showing customers what Resources ecommerce G2P can do for them. They are the Labour cost • Increasing salaries pushing demand for automation best promoter for the G2P Payment • Payment alternatives and contract lengths may influence take- growth and market.” [G2P supplier] options up of G2P technology Financial & Standards • Systems standards & regulation may impact the G2P sector Continued ecommerce growth is a Legal labour Legacy • Existing automation may not be compatible with G2P key driver of G2P robotics systems • Proven systems and are the incumbents to beat Delivery • Rising consumer expectations on speed of delivery Global B2C ecommerce is estimated to Consumer shortages are expectations expectations • Increased efficiencies in warehouses generate $4.1bn revenue by 2020, up from $2.8bn in 2018. key drivers Warehouse properties may “The demand is partially driven by However, this does not factor in the ‘real require additional work to host the cost of land. Where it tends to sales figure’ – including returns, which can robotics be cheaper to build upwards than be as high as 70-80% or less than 10% Land is expensive and building upwards is sideways, for example in the UK. It Amazon continues to be an depending on the sector, channel and occasionally cheaper. However, such business model. Managing returned goods puts some restrictions on the AMR influencing factor in construction may require extensive segment as they do not lend is a big warehouse management issue. additional work and may not be a suitable driving competition in the solution for robotics. themselves to an easy upwards “Returns are an inherently difficult expansion.” [Swisslog] market process to automate.“ [ZigZag] “Installing mezzanine floors is one way to add space for robotics in Other potential detractors may include “Our fashion merchandise returns existing warehouses. However, we peak electricity/power demand. Whilst rate is circa 30-40%. The process are aware of instances where not insurmountable, such issues may add of adding a returned item to occupiers have had to dig up the to the cost of implementing robotics and/or automation systems. storage can often delay other floor to support additional processes and make your storage foundations, a costly a time automation less efficient.” [Boozt] consuming process.” [Savills]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 8 Availability of suitable properties However, operating a high-capacity facility Access to labour - a major issue spread over multiple floors with a high MARKET may cause issues Some of the key issues with access to frequency of robotic movements may labour may have been inadvertently Data suggests that the UK warehouse introduce unforeseen property/ facility created by local governments and vacancy rate is at a decade-low rate. issues. DRIVERS However, industry observers do not see warehouse operators. low vacancy rates as an important driver Increased competition among 3PL for G2P. players has impacted G2P appetite “We estimate there will be a shortfall of one million human UK warehouse supply & vacancy (M sqft & %) Competition in the 3PL sector has led to a pickers by 2022. This is based on 100 tightening of margins and increasingly 80 30% short contract terms. numbers from the US bureau of 60 20% labour.” [IAM Robotics] 40 There is a reluctance in the sector, 10% 20 especially among multi-tenanted 3PL’s, for Local governments have been keen to investments with an RoI beyond the 0 0% attract business and operators may have

lifetime of a client contract. Multi-tenant consolidated huge operations into a single

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 The available 1Q19 3PL’s also change their layouts frequently location. Source: Savills Research to respond to new clients coming in and warehouse estate “We’re not seeing the shift going out. Any robotic solution needs to be highly flexible to manage a variety of “Right now there is zero per-cent towards robotics driven by lack of clients and product types & sizes. unemployment in Milton Keynes may influence the warehouse space, but lack of where we have our main “At the moment there is no labour.” [Savills] distribution hub.” [John Lewis] G2P market appetite for automation or “G2P robotics has been massive robotics among 3PL’s.” [Supplier] However, even where there is abundant for us. Flooring is an important access to labour, operators may have factor in multi-floor operations. “3PL’s are increasingly looking at issues with high employee turnover which Competition among 3PL’s increases costs for learning & Outside of Asia there were very G2P but, it may be a few more development. Such issues often lead to a may have postponed few multi-level warehouses until years before they go all in with decline in picking accuracy and general demand in the short term the onset of G2P robotics. Now G2P. We are developing G2P quality of work. they have become common place products for the ecommerce in the UK, mainland Europe and sector. Our mini load stacker is an “Our main European warehouse is the USA. We are now looking at example of this.” [Jungheinrich] located in Hungary and we are multi-level facilities in Australia & having issues with finding Latin America. In fact I am talking However, despite a general reluctance qualified staff. When I worked for among 3PL’s to invest in automation, XPO to a company later today about a (source) and DHL Supply Chain (source) Amazon in the US one of the key multi-floor installation.” [CoGri both announced $100m’s investments in issues was picking accuracy.” Group] automation and new technology. [Anonymous]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 9 Higher labour cost countries more Higher warehouse utilisation rates Standards and potential MARKET likely to adopt robotics faster make labour costs a more regulation may deflate the market Minimum wages in China has increased significant issue The introduction of standards may drive a sharply in recent years, but was on The purchase cost for an AMR is generally commoditisation of G2P solutions. DRIVERS average two to three times less than accepted to be around the same as the However, STIQ’s interviews are European and North American wages in cost for 1X FTE picker (in a high cost contradictory and there are no associated 2017-18. country). short to medium term risks.

However, whilst Chinese salaries are In a single shift warehouse this would Other warehouse vendors expect lower, AMR’s are also sold at a lower price mean a like for like replacement. standards to be introduced shortly which Access to labour in the marketplace. Reasons for this are However, in a 24 hours shift environment would enable them to interface better very high competitive pressure among the savings become more apparent. with new G2P solutions. suppliers and a concentration of very large is perhaps the “Research shows that material handling and influential buyers. occupies 75 percent of labor costs, 25 “It is early days for G2P robotics most pressing Sample minimum hourly rates ($’s) percent of human resources, 55 percent but, we are actively monitoring 13.5 of production space and 87 percent of and considering the impact it may production time.” (Source) issue for 11.5 11.3 have on our solutions.” [JDA] 10.5 10.6 10.1 9.0 RaaS, payment options, etc can drive uptake of G2P robotics warehouses 6.7 “There is a lack of standardisation Payment options can have a significant among these relatively new G2P 3.5 impact on uptake and most start-ups robotics systems. This is partly 2.0 profiled in this report offer robotics as a The problem with access service (RaaS) with an OPEX impact. why we developed our WES, so Legacy automation companies offer that we can orchestrate labour

to labour also exist in UK

CAPEX options but with additional and automation irrespective of

India

China

Japan France

lower cost countries, Canada financing options. Australia

Germany system standards.” [Manhattan South Korea South however, business cases Netherlands “We evaluated a number of Associates] Source: Wageindicator.org, latest known. STIQ interviews for robotics often fall due solutions before we decided to go Note that the US does not have a with Fetch Robotics. The main “For us, there is a clear move to high costs minimum wage, which is set by individual difference was that we could buy towards a traffic software, or WES states. Circa half of all states have adopted a single robot and use that to if you wish. This orchestrate all an hourly minimum. create a business case without the various robotics and other There are also calls for recognising integrating with a WMS. With automation. There are moves to organized labour unions among some some of the other solutions you standardise this software. Once operators in the US. Amazon has, so far, need to do the integration up this is implemented there may be resisted but, recently increased front which adds costs and delays pressure on prices to fall in the warehouse pay to $15/hr (source). the business case.” [Ryder] G2P sector.” [STILL]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 10 A recent incident in a UK A number of retailers have already Consumer expectations; vendor MARKET warehouse operated by Ocado invested in shuttles and auxiliary initiatives may force regulations systems Competitors are smartening up, improving The February 2019 fire at one of Ocado’s efficiencies and speeding up processes in their warehouses. Alongside this, many of DRIVERS depots in the UK (source) may influence “Our shuttles are now 10 years old the market negatively in the short term. the couriers are also improving their and performing 24 hours per day. services including the vital last-mile. STIQ’s conversations indicate that the We have a set-up that is based on spread of the fire may have been due to a conveyors and shuttles. We are Hermes, among other couriers, have failure to shut down the robots in the grid developed B2C smartphone applications Standards and not looking at any other to ensure first attempt deliveries and as a which apparently continued running automation technologies. If during the fire and thereby spreading the way to develop a closer relationship with regulations may fire further. Please note that this is anything, it would be to update consumers. unconfirmed information, but from a very our shuttle system.” [John Lewis] good source in retail. Inside warehouses, WMS providers have drive up costs in taken the approach to make existing “The fire at Ocado may put some Consumer expectations labour and/or automation processes more the short to dampers on the segment. It is efficient by adopting machine learning According to PwC’s Global Consumer algorithms. However, a lack of historical hard to say as it is early days, but Insights Survey in 2018, more than a third data has prevented fast adoption of this medium term there may be moves to introduce of consumers now expect Next Day or particular initiative (it has not been stricter fire regulation on these faster delivery. standard to save data for longer than a kind of solutions.” [Swisslog] Consumer delivery preferences month or two). A number of legacy 40% A number of WMS vendors, such as retailers have already “Following the Ocado incident we Manhattan Associates, have also released had our H&S people contacting us 30% a WES (Warehouse Execution Software) to invested in automation Willing to orchestrate and execute the various about our sprinklers and pay for and switching solutions service systems in a warehouse and connect them insurance. I think we must have 20% Expected with any version of WMS’. service might incur large the most well developed sprinkler system in the UK.” [John Lewis] 10% “We released our WES earlier in additional costs 2019. This is a response to an STIQ’s interviews suggests storage and 0% increasing number of various usage of batteries in robotic systems may <3hrs Same Next 2 days 3-5 1 week > 1 systems & processes in be a prioritised area for regulatory action. day day days week warehouses. Our WES act as the Source: PWC 2018 “The Ocado incident may have an director of the various automation Amazon has been a large influence in and other systems used in a impact on more recent systems. driving up consumer delivery expectations Not on shuttle type systems with on the back of its vertically integrated particular warehouse.” developed fire controls.” [KNAPP] fulfilment processes. [Manhattan Associates]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 11 Intense competition between the A small number of very large MARKET Chinese ecommerce giants has led buyers has led to price pressures to increasingly onerous services A concentration of very large buyers of Explosive growth of Chinese ecommerce automation has led to price pressures as Source: Malu Innovation CHINA has created an extremely competitive the many G2P suppliers fight for projects. environment. Increasingly onerous Such buyers include Cainiao and China customer service promises have Post among others. China online pressurised the logistics and order fulfilment space. Same day delivery is no STIQ estimates that prices for G2P robots Source: Aresbot longer a luxury for Chinese consumers. in the Chinese market are 33-50% cheaper retail is America compared to overseas markets. Demographic changes has created a high level of movement in the labour market “The cost for an AMR is much & Europe on and warehouse employees shift jobs with lower in mainland China Source: Geek+ Managing a fast moving workforce an increasing frequency. Training new compared to in Europe and North is a key issue in lower labour cost steroids staff has become an increasingly large America. The reason for this is the part of employees lifetime salaries. countries very tough with a high level of Whilst a shortage of labour is not an issue These two drivers together with last-mile competition between suppliers.” in lower labour cost countries, many Same-day delivery as improvements have created a bottleneck [Supplier] operators are highlighting problems with in warehouse fulfilment and increased managing attendance and retention of The higher prices achievable in overseas standard compared to 3-5 demand for automation. Amazon has experienced staff. acted as the main source of inspiration for markets will inevitably attract Chinese days standard for Amazon; suppliers and both Geek+ and HIK Vision this demand for automation. An additional problem is managing the has expanded operations. Others are large volume of labour required and employees are moving on highly likely to follow. fast with L&D a large Government support for AI & maintaining accurate inventory levels. Robotics industries “Our main business is presently in “In India the average monthly proportion of lifetime cost; China. But, in 2019 we extend our The Chinese government’s “Made in China salary for a warehouse worker is 2025” strategy (source) is highly business to overseas.” [Quicktron] mega-shopping events $300. It is very difficult to create a supportive of higher value activities such such as Double-11 and as artificial intelligence and robotics. Chinese G2P suppliers are mainly business case for robotics on that others puts huge stresses Many of the Chinese G2P companies have AMR-based but vary from Kiva in basis alone. However, we are had some form of government assistance. scaling some warehouses to a on systems the width of products Chinese G2P manufacturers have a much point where it makes more sense In 2017, the Ministry of Industry & IT to automate some processes, issued a 3-year plan for promoting AI and wider range of products when compared smart warehouse/factory (source). This to their European and North American simply because it becomes too included intelligent logistics and materials peers. difficult to manage, train and distribution. Logistics and distribution is ensure availability of labour.” thought to account for 15% of GDP. STIQ’s view is that this is partially driven by the market and large funding rounds. [Flipkart] Published by STIQ Ltd, United Kingdom www.styleintelligence.com 12 G2P Robotics market “The US market is very hot now. MARKET SIZE Chinese and Indian companies are AGV’s, A-B, Retail & Warehouse really keen on robotics, but the Autonomous ASRS/Shuttles financials do not add up yet.” Forklifts, etc. [Caja Systems] PA- ASRS AMR $0.4bn ~$4bn AMR “The G2P market is very healthy.” [Körber Logistics]

G2P Robotics, 2018 “Five years ago, we were $400m (est) evaluating G2P on some of our G2P robotics Source: STIQ research & analysis. Excludes Amazon Robotics projects. The difference now is that clients come to us asking for G2P’s overlap with existing The global AGV market was valued at overlap existing markets; AMR’s nascent $2bn in 2017 (source). Using the same G2P systems on almost every 20% share ecommerce & warehouse project. We explain the various Of the three G2P segments (ASRS, AMR, valued the sector at $0.4bn. markets est. PA-AMR) ASRS and PA-AMR fall within G2P systems, highlight differences existing markets. ASRS’ compete with and showcase the best fit for Using a bottom-up analysis of the G2P shuttles whilst PA-AMR’s overlap with individual customers.” [Fortna] suppliers covered in this report STIQ value of $4.5bn AGV’s. estimates the value of G2P robotics $400m in 2018. However, the AMR niche does not fall “We have deployed 300 systems in easily within a larger existing market. With 24 countries.” [AutoStore] The 2018 market was boosted by the its acquisition of Kiva in 2012 Amazon also STIQ estimates the G2P expiration of Amazon’s support for Kiva subsumed most of the AMR market. “Our pipeline is very healthy.” niche market at $400- Systems and GreyOrange’s deal with XPO (the XPO deal is valued at an estimated [Exotec] 500m in 2019 STIQ estimates the G2P market was worth $400m in 2018 $80-100m). “Our model estimates there are The combined revenue of the top 20 Based on the dearth of labour, the 10,000 sites for micro fulfilment ASRS/shuttle manufacturers was $19.6bn market could be worth an in 2017, up 18.9% from $16.5bn in 2016 centres globally. This is at 20% (source). additional$20bn online grocery penetration” Based on the often quoted & estimated [Takeoff] STIQ estimates that circa 20% of the shortfall of one million pickers in US ASRS/shuttle market is related to warehouses by 2022, the US warehouse “Our order book is very healthy. ecommerce & warehouse customers. This automation market (incl. G2P) would grow Some of these projects are for would value the 2017 ecommerce & by an additional $20bn in value. warehouse ASRS market at circa $4bn. >100 robots. We have had to scale up our production.” [Scallog]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 13 Interviews suggest continued high The majority of 3PL’s remain cautious “XPO did a very clever thing with MARKET levels of growth despite political when it comes to automation GreyOrange. Yes, it would appear investments. uncertainties that XPO are trying to emulate an Interviews suggest the G2P market will “We supply AGV software & FBA service. However, the general GROWTH continue growing in the short to medium hardware on an OEM basis. Our consensus is that FBA is good for term. STIQ estimates market growth in core is in the software. I think we starting up a new business but, 2019 at circa 45%-80% touch a third of the global AGV not scaling it as it becomes costly Estimated G2P market growth 2019 market via our partners. Of course fast. That is where we can step in.” 50% the G2P piece is of interest. We [HighJump] are currently working on this with Sharp growth a few of our partners, mainly in A perceived low ecommerce Asia.” [Kollmorgen] driven by a 0% 100% penetration in grocery has Demand for G2P solutions is experienced Warehouse operators have become more received special attention pro-active in considering automation across the warehouse supply-chain, from The bulk of new ASRS entrants have single order; forklift manufacturers to WMS vendors options. In particular those involved in ecommerce fulfilment targeted various grocery retail business and consultancies. models. good underlying “The number of RFP inquiries “Five years ago we started requesting integrations with working on floors for AutoStore market growth smart automation (including installations. The sole reason for robotics) has gradually increased our company’s recent growth has over the years. However, the rate been due to the explosion of robotics in the materials handling Grocery ecommerce has has more than doubled, & possibly tripled in 2018 compared to just 2 industry.” [CoGri Group] received special attention Source: Alert Innovation. Novastore concept illustration years ago. Not all customers are However, the success of Amazon FBA and from recent start-ups ready for smart automation but, it marketplace operators such as Newegg & is clear that they are planning for Rakuten offering fulfilment services “The use of robotics in new and the future.” [JDA] appears to have triggered a few 3PL’s such existing warehouses is expected to as DHL & XPO to invest heavily in G2P. boom and the ability for these “G2P is an interesting market. “We have noticed moves towards new technological resources to There is a demand for G2P urban warehouses where the first work with inventory awareness automation from warehouses. 1-2-3 floors is warehouse space effectively, alongside human Perhaps not so much from the and the rest is flats. This is very capital, is key.” [Manhattan 3PL’s as from the own managed early stage, but is definitely being Associates, via Supply Chain warehouses.” [Jungheinrich] discussed.” [Savills] Times, 2019]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 14 Key events since the 2018 G2P report inspired by Amazon and Kiva Systems, China #1 AMR market by volume AMR • Zalando deploying AMR’s in their new many of them have now advanced beyond STIQ’s interviews suggests AMR pricing in NDC in Sweden a single AMR. Chinese suppliers have the China is circa a third lower compared to • XPO bought 5,000 AMR’s with sector benefit of a huge domestic market with international markets. Two main reason exclusivity from GreyOrange extremely high ecommerce growth. have been flagged; a large & fast growing • GreyOrange raised $140m Amazon has been hugely domestic market with a concentration of a • Geek+ raised $150m influential in the AMR sector… few key buyers and intensive supplier • STIQ estimates that circa 30-40,000 competition. non-Amazon/Kiva AMR’s have been Amazon activated the signal for start-up deployed globally to date. The majority activity in the G2P sector with its Kiva “We have not seen or heard of deployments have occurred in the acquisition in 2012. Numerous companies anything of GreyOrange since the have used Kiva as a source of inspiration Far East with China and Japan the key XPO deal was announced.” countries. for new and exciting robotic systems. [European G2P supplier] “The team also has made them A single order Various stages of global market [AMR’s] larger in size so they are development for AMR’s “We deployed with a 3PL in able to move actual pallets of Poland and have a number of increased the China, Europe and North America are the product in addition to the smaller POC’s in the European market.” three key markets for AMR drive units that move inventory market by 20% manufacturers. Kiva Systems’ patents has [Geek+] deterred suppliers from entering the pods. Today we have more than North American market up to 2018. 100,000 drive units deployed STIQ estimates the Asian market (China throughout our global fulfilment represents the bulk) accounted for circa 66% of global AMR volume, but only 40% The GreyOrange and XPO “Part of our work is to develop network.” [Amazon via Source] of the value in 2018. mathematical models to evaluate deal has yet to impact … but its influence may be waning ROI on various warehouse The global AMR market (G2P) dynamics in the 3PL automation systems. Due to the Most of the Chinese & other Asian G2P market absence of AMR’s in North suppliers have expanded R&D activities of North single-function G2P robotics into eco- America America until very recently we , 10% systems of multiple robotics. See also have not had reason to develop a Market section on China. 20% solution for this, but we are now AMR’s receive a lot of interest but, 40% working on this.” [Fortna] Europe, not much converting into sales yet 30% European customers are slowly converting Asia, from POC’s to permanent deployments. “There is definitely a lot of 40% 60% However, the typical size of deployments interest in AMR’s right now. How tend to be less than 100 AMR’s. much of that interest will Volume The Chinese market is in a league of its ultimately convert is a big Value own and whilst manufacturers have been question.” [Swisslog] Source: STIQ estimates. Excludes Amazon Robotics/Kiva Systems

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 15 Key events since the 2018 G2P report “We have a small number of The G2P sector remains in a state of flux • Geodis deployed its 175th PA-AMR multi-floor deployments. We are with innovation and new entrants arriving PA-AMR • PA-AMR’s are competing more and from disparate sources. more in industrial applications not moving heavy shelves so these (competing with a sector traditionally run on standard mezzanine One such source is Boxed.com, a “Costco supplied by AGV’s). The manufacturing floors.” [Fetch Robotics] for millennials”. Boxed.com has developed and automotive industry appears to go a PA-AMR they refer to as ‘Autonomously through an AGV upgrade and shifting An increasing number of Driving Vehicles’ from off-the-shelf towards autonomous vehicles such as competitors has produced hardware and open-source software. PA-AMR’s similarities between suppliers The cost to Boxed.com for each cart is circa $6,000 (source). Whilst this is below Market growth; The material handling sector is general market prices for PA-AMR’s it highly attractive to PA-AMR should be noted that the product was manufacturers developed over a period of 3 months and huge interest is unlikely to include any of the advanced PA-AMR’s are highly flexible and versatile features incorporated in professional robots which can be deployed in a warehouse PA-AMR’s and may also from industrial number of use cases. exclude various certification.

“There has definitely been a lot PA-AMR is a global market; more of, what you call PA-AMR’s, Images: 6 River Systems ‘Chuck’ on the left vs ecommerce application North Amazon’s support for Kiva attempting to compete in the AGV Gebhardt’s ‘GridPick’ on the right. America & Europe terminated in 2018 with a sector. This has been more Well-funded and willing STIQ estimates the PA-AMR market is potential positive impact noticeable in the last two years, companies may enter the PA-AMR concentrated to North America and Europe. but has probably been around for market in specific use cases on the PA-AMR market; longer.” [Kollmorgen] The global PA-AMR market (G2P) overlap with AGV creates A number of the companies covered in Asia, 10% large market this report admit the revenue share from ecommerce applications is small and that 10% industrial applications are more attractive. However, other suppliers indicate ecommerce is an excellent customer base. North 55% 35% Europe, America 35% “We currently have 300 robots , 55% deployed. This will increase to 1,000 by end of 2019. Our Volume customers are mainly ecommerce Value Source: Boxed.com. To STIQ’s knowledge the PA- and 3PL businesses.” [inVia] AMR is not offered for sale externally. Source: STIQ estimates Published by STIQ Ltd, United Kingdom www.styleintelligence.com 16 Key events since the 2018 G2P report Online grocery warehouse The nascent nature of the sector • Ocado & AutoStore appears to have fulfilment appears to have adopted means previously unknown issues ASRS buried the hatchets and Ocado ordered ASRS may surface an installation from AutoStore to manage ambient products Online Grocery retailers have adopted ASRS • Plenty of movement by traditional as its choice of fulfilment automation as “We are just about starting our shuttle manufacturers moving into these systems are more suited to third AutoStore expansion. By the mini-loads to compete with G2P perishable goods and storage in three • Walmart and Alert Innovation different temperatures (ambient, chilled end of this we will have more partnered to develop a [presumably] and frozen). than 300 robots. At this scale we competing system to Ocado are experiencing that it takes • Takeoff and Knapp partnered to create Ocado was one of the first systems longer time to retrieve products, a grocery store The grocery targeting the grocery segment and is despite using chaos inventory • Some of the click & collect locker currently the leader in online grocery suppliers are actively developing fulfilment, however, there is increasing control. However, AutoStore have sector has products for the warehouse sector competition in the specialist segment. just released their Black Line which may improve this.” [Boozt] largely shaped ASRS systems compete head on with the more traditional shuttle ASRS is a global market but, key systems the G2P ASRS customers in North America & G2P ASRS solutions in this report compete Europe segment head on with ASRS shuttle systems. Shuttle manufacturers have created scale-down STIQ estimates the ASRS market is products in order to compete with G2P concentrated to North America and Europe. ASRS solutions. The global ASRS market (G2P) Shuttle providers Asia, Source: Takeoff Technologies & Knapp has partnered increasingly aiming for the “In my experience from the Nordic 10% G2P market markets it is mainly own- For example, Knapp (a shuttle operators who buy into AutoStore manufacturer) has partnered with Takeoff 10% and similar systems. For us, as a Technologies for an integrated grocery 3PL, flexibility to allow us to serve store format being trialled by Ahold and North 55% 35% Europe, both Opex and Dematic offers systems America customers with wholesale 35% directly targeting online grocery fulfilment. , 55% capacity as well as consumer capacity was more important. Alert Innovation has developed Alphabot in That is why we bought two shuttle collaboration with Walmart and developed systems recently.” [PostNord TPL] grocery store concepts such as Nova Store. Volume Value Source: STIQ estimates. The ASRS systems covered in this report

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 17 Software and/or hardware? These companies have approached the G2P -> G2R Recognising and knowing how to pick as picking problem from several directions. disparate items as lipsticks, t-shirts and Some are working on AI & ML software home interior is an inherently complex (Osaro, Fizyr) using standard grippers from task currently employing the brains from the articulated robotic arm manufacturers. companies such as Fizyr, Osaro, Kindred, Others have approached the problem Sample vendors of picking technologies RightHand Robotics, and Soft Robotics. from a material science direction (Soft Robotics) whilst other have taken a hybrid The ‘arms race’ for picking robots “Every item in a warehouse is approach (RightHand Robotics). Note that touched between 4-11 times. Mick Mountz, founder of Kiva Systems, ‘Goods to Robot’ An increasing proliferation of G2P robotics recently joined RightHand Robotics. and individual picks from totes and/or There is huge potential for boxes have led to significant combining G2P and picking “We are talking to suppliers and robotics developments in picking technology. robots.” [Righthand Robotics] trying picking robots. However, Both Amazon and Ocado have organised our products vary wildly and we separate annual competitions for picking have not yet found one that does Picking robots have a wide technology companies for some time to it for all our products. The best application, part of which gain access to new developments. thing would be if someone copied a hand to pick with.” [John Lewis] is combined with G2P or Leading robotic arms manufacturers such as ABB, Universal Robotics and Fanuc have G2R systems either invested in or partnered with start- “Picking robotics still have some ups. way to go. When I am talking about picking robotics I mean “Picking robotics is the holy grail. those that can recognise different We have tested several systems products and grab them safely, but none are really there yet. It is Source: RightHand Robotics etc.” [Ryder] STIQ are planning a picking likely to happen, but when? In 2-3 robotics report in the near years or in 5 years… perhaps?” “There is plenty of action on the However, a few suppliers have managed [Boozt] picking robotics scene. However, to generate significant revenue on picking future. Sign up to our (+) technology. newsletter to get a first There may be an emerging view that ASRS for me there is a question about suppliers should be responsible for the the business case. The cost per “We have multiple installations in hand copy here picking as this closely relates to ASRS’. pick is very small and how do you North America. Some of these are “We were told by a global top 3 create a business model from $10m+ deployments. Our solution logistics provider that picking that? In my view the technology is is item picking and sequencing of robotics should be a responsibility not really here today and I think it the outbound orders, which of ASRS suppliers due to the high may take another 3-5 years for it creates efficiencies further level of integration.” [RoVi] to develop.” [Anonymous] downstream.” [Berkshire Grey]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 18 On a technical level, calculating “We distinguish between ROI and A sample KPI is Picks Per Hour. AutoStore’s G2P ROI ROI is straight forward… Business Case analysis. In our ROI new Black Line (combined with the new At a top level it is easy to calculate ROI for picking area) achieves circa 600 picks per analysis we found that PA-AMR’s hour whereas a PA-AMR may improve G2P as performance characteristics and may be best deployed in costs are known; and when there are no human picking rates by 2-3 times. other solutions involved. opportunistic replenishment vs ABC analysis for G2P systems picking applications. But this does

“On a two-shift basis customers not include limiting factors, such High get a return on investment in as access to labour” [Fortna] under two years.” [G2P Supplier] Potential clients often hire “Our customers can achieve ROI in consultants to evaluate systems single digit months.” [Takeoff] “We employed a consultant to Low ROI is simple at … however, in ROI includes show us the various different ASRS AMR PA-AMR multiple variables, system benefits automation options. We brought “We make recommendations to & the business model our KPI’s, variables and a technical level our clients on which automation requirements. AutoStore was the However, to get a fair picture of ROI it is systems they should implement often necessary to contextualise a solution that came out on top. ” based on our analysis. Flexibility, potential new solution in its environment, [Boozt] However, once operational taking into account business models, etc. our experience with the company Other prefer to keep evaluation and ROI & the team and the potential for consideration are included Introducing a new G2P system may have calculations in-house. Some businesses synergistic advantages are some additional benefits in a warehouse may also have other business objectives of the more important aspects we such calculations turn ecosystem. The business case may also which may play into plans. complex take into account external factors, such as look at. Cost is layered in at the availability of labour, access to main “Robotics is not all about end, but does not form a part of transportation routes, etc. replacing people, but also the evaluation itself.” [Fortna] replacing highly repetitive “RoI and suitability is simple on a processes and redeploying human SKU volume and inventory depth technical level. Shuttle systems are capital into more interesting play an important role high performance and AMR’s are work.” [John Lewis] Pureplay retailers tend to keep a low flexible with a lower infrastructure inventory count of each SKU, allowing investment. However, when you Suitability of the various G2P them to display a very wide range of get into customer’s business systems vary by business model products online. models and how they want to Suitability of a particular system in a Legacy retailers require a good depth of operate it quickly becomes a more ecommerce fulfilment business model products to display on shelves and for complex evaluation.” [Swisslog] relies on numerous different variables. replenishment.

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 19 Retail & wholesale business models Flexibility may be very important, Continued innovation in the especially for fast growing merchants and robotics market has produced eco- G2P ROI 3PL’s where warehouse layouts can

High system suppliers… Pureplay change quickly and frequently. Retail Multi- “The main pain points for robotics “We would classify our solutions channel at the moment [in India] is access as goods-to-robot rather than #SKU’s Retail to capital, RoI, lead time to goods-to-person. We make use of integrate which can take 6-12 Legacy multiple conveyance technologies Wholesale months if not more. Our Low Retail in our solutions from conveyor Low High Inventory depth warehouses are also changing a based systems to mobile robotics lot so a permanent installation Selecting a G2P The chart above is a wide generalisation to engineered shuttle which works well to showcase the would not make sense. Reliability infrastructure.” [Berkshire Grey] extremes of pureplay vs wholesale is also a huge issue. We require system is not a business models. >99.95% uptime.” [Flipkart] … the market is still nascent; users Some warehouse operators take and suppliers recognise new ways A pureplay retailer may favour a higher of looking at ROI straightforward throughput and pick rate whereas a robotics into account up front wholesale business may favour a when evaluating locations “Interestingly, we have started process collaborative solution which assists its STIQ’s interviews suggest that whilst many pickers. warehouse occupiers currently review a thinking differently about our pick In the ecommerce world, fast number of local factors to determine the faces now that we do not have to movers can suddenly become best location, only a few have expanded think about the transportation to Numerous variables play slow inventory & vice versa factors to include automation factors. the processing/staging area. At the moment we have not made into how to operate a Conventional wisdom would have it that Wider evaluations including automation warehouse with bestsellers should be placed closer to pick factors may be related to future-proofing any changes but it has definitely & processing than slower moving a particular warehouse location rather had a number of us thinking about automation inventory. than a current requirement. the processes.” [Ryder] Optimised inventory management may “Occupiers already evaluate include dispersed inventory to ensure unemployment rates to decide “At this stage it is premature to multiple concurrent picks of the same new warehouse locations. There is talk about pricing. Our first pilot SKU. increasing evaluation of other with the most advanced “Flexibility of the system is key. factors, such as power supply. Just architecture on the market is What is a 3PL going to do with the imagine peak power requirements operational now. Making it the system after their client contract for a warehouse with 4,000 robots most reliable and cost-effective has run out after 1-2 years? How and a number of electric delivery are our key priorities right now.” do you provide flexibility?” [STILL] vehicles.” [Savills] [Alert Innovation]

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 20 PROFILES ✓ ✓ ✓ Capabilities Capabilities Capabilities • Butler; AMR and picking arm • Shuttle • Boby; AMR, max 600Kg’s AMR • Package sorting machinery • AMR, Carrypick Organisation Organisation • AutoStore reseller & integrator (160+ • Based in France • Head office in Singapore, 2X offices in installations) Deployments/Clients the US (Atlanta & Boston) Organisation • 30 customers including: Rhenus Deployments/Clients • Swisslog is part of the KUKA/Midea Logistics (15 AMR’s, 520 shelves, • Butler: XPO, Unilever, Sodimac, group €0.5m), Decathlon (60 AMR’s + 8 Flipkart Deployments/Clients stations), The Idéa Group, ShopHair, Partnerships can • Sorting: Amazon, Flipkart, DHL, • Multiple Wesco, L’Oreal, Gemo, Orderwise Delhivery Primary Sectors (Unified Commerce) • n/a: DTDC, Pepperfry, Myntra, • Logistics, medical Primary Sectors be very helpful Aramex, GoJava Financials • Ecommerce, retail, industry Primary Sectors • Swisslog was acquired by the KUKA Financials/Metrics to drive business • 3PL, ecommerce Group in 2014 for $357m • Raised $1.7m in 2015 and cashflow Financials Strategy positive (2018, 2019) • Estimated revenue in excess of $100m • Swisslog has partnered with AutoStore • 40 employees (company) in 2019 on the back of XPO deal as a reseller and integrator Strategy • Raised $175m (latest, Series C, Sep • Swisslog announced in mid 2018 that it • Primary focus is on the pan-European GreyOrange provided 2018, $140m) from investors including was putting more effort into market, but the company has also exclusivity to XPO in Blue Ventures, Mithril Capital developing its Carrypick range deployed in Asia Management, Flipkart, Tiger Global (source). Previously the group • Software is an important piece of the exchange for a large order; Management distributed Grenzebach’s AMR solution with a WCS as well as a RMS Swisslog acts as an Strategy • Recently opened a new facility capable • Partnership with XPO means company of producing 2,000 robots per year. integrator and supplier of has to shift new business activity on Already looking at expanding this non-XPO competitors in key territories robotics • The North American and European markets are key focus in the short term. In Aug 2018, the company announced it is looking to deploy 20,000 AMR’s in the North American market in the next 3 years (source) and have employed an ex-Honeywell MD to grow the business

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 21 PROFILES ✓ ✓ ✓ Capabilities Capabilities Capabilities • 4X AMR’s with various weight capacity, • AMR + • 2X AMR’s; M60, max 600Kg’s + M100, AMR called LMR’s (Latent Mobile Robots) Organisation max 1,000Kg’s • 2X Conveyor robots • China office, in expansive phase now Organisation • 1X package sorting robot • Company name: Beijing Jizhijia • China office • 3X Forklift robots Technology Co., Ltd • AKA Flashhold Three suppliers • Heavy duty robot <3tns Deployments/Clients Deployments/Clients • AGV with in-built arms • Deployed >7,000 robots (Nov 2018) • Deployed >5,000 robots (Feb 2019) Organisation throughout China, Hing Kong • Cainiao, Tmall (200 AMR’s), VIP.com, account for 90% • “Hikrobot” (Hangzhou Hikrobot Singapore, Australia, Japan, Taiwan, US JD.com, Lazada & Malaysia Post, Rokin Technology Co., Ltd) is a and Europe Logistics (CJ), China Post, CML, Alibaba division/subsidiary of Hikvision, a • 30+ clients including HKTV Mall, China (Box Ma Shengsheng, offline of the Chinese company specialising in vision Post, Cainiao supermarkets), Sinopharm, Shanghai technology and factory/logistics Primary Sectors Pharma, State Grid, Greatoo, UR (25 AMR market automation • Ecommerce, logistics, automotive, AMR’s), La Chapelle • Group HQ based China with offices in pharmaceuticals Primary Sectors 30+ countries Financials • Ecommerce, Pharmaceutical, Grocery, Deployments/Clients • Raised $239.4m (latest series B, Industrial There are huge price • n/a (for Hikrobot) $150m, Nov 2018) from investors Financials/Metrics Primary Sectors including Warburg Pincus, Volcanics • Raised $36.3m (latest, Series B, $29m, pressures in the Chinese • Warehouse, automobile, industry, Ventures, Vertex Ventures China and Mar 2017) from investors including medical, tobacco, clothing, F&B, 3PL Gaorong Capital Cainiao, Softbank Ventures domestic market; a broad Financials/Metrics • Estimated revenue $65m in 2018 • 300 employees in 2018 (60 in 2015) range of robots is • Group revenue $7.3bn in 2018 Strategy Strategy Strategy • Strategic focus on international • Expanding into Europe & US in 2019 paramount to meet • Machine vision is the company’s core expansion in Europe, Middle East and customer demand but add activity North America (US in particular) • “Providing Eyes and Legs for costs; overseas expansion a factory/logistic automation” natural development

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 22 PROFILES ✓ Capabilities Capabilities Capabilities AMR • iWR500; AMR capacity 500Kg’s, • 4x AMR’s 10, 500, 700 and 1,300Kg’s • AMR; two regular duty robots; one • ARES1300; autonomous forklift with • 1x AMR Conveyor 500Kg’s and one 1,000Kg’s capacity of 1.3t Organisation • Picking bay, Software • Based in China Organisation Organisation Deployments/Clients • Previously known as ‘Bleum Robotics’, A number of • Based in China • n/a now spun out from the Bleum brand • Acquired by Megvii (Face++), one of Primary Sectors • US office with R&D in Shenzhen, China China’s largest AI companies in Apr • Ecommerce Deployments/Clients Chinese 2018 Financials/Metrics • A number of deployments in Europe Deployments/Clients • 20 employees (LinkedIn) and the US with a healthy pipeline of companies have • Baby Tree, Kejie Logistics, Foxconn • 3 co-founders, including a VP at Cathay projects (100 AMR’s), P&G, Ningbo Shunshi Capital PE (China) Primary Sectors Jinzhi Technology, Strategy • Ecommerce, 3PL, industrial only targeted Primary Sectors • One of the few AMR suppliers with an Financials/Metrics • Ecommerce, 3PL, industrial, AMR incorporating mecanum wheels • 11 employees (LinkedIn) the domestic automotive Strategy Financials/Metrics • The only US-based AMR supplier • Single largest deployment to date is • Prime has recently consolidated its market 500 AMR’s R&D to Shenzhen and have expanded • Estimated lifetime deployments production capabilities >3,000 robots Strategy There is potential for • Targeting the domestic Chinese market and widening the range to increased competition in offer a full logistics system North America and Europe • The parent company, Megvii (backed by Alibaba) was considering a potential as the Chinese market IPO in Hong Kong according to Bloomberg reporting in Jan 2019 saturates; (source)

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 23 PROFILES ✓ ✓ ✓ Capabilities Capabilities Capabilities • OP1, reach <3.5m, max load 30Kg’s, • A hybrid set-up targeting the grocery • Eirasystem; G2P, moving pods to AMR driving speed 1.5m/s, Li-ion battery life vertical person 8hrs, forklift grabber • CPS (Curbside Pick-up System) for • Eiraparts; industry 4.0 • BB2, reach <40cm (first shelf level), grocery click & collect orders • Eiracube; B2C, to be used in-store max load 30Kg’s, driving speed 2.5m/s, incorporating AMR’s • Launched its latest AMR robot version Li-ion battery life 8hrs, forklift grabber. Organisation ‘Generation 5’ in July 2017. Gen 5+ will Delivers totes to picking/staging area • Offices in the US & Greece work among people and is currently in Organisation Deployments/Clients trials to be released in mid-2019 AMR hybrids are • Based in Israel • At prototype stage Organisation Deployments/Clients Primary Sectors • Eiratech is incorporated in Ireland • Bergen Logistics, 1x US client, 1x • Grocery Deployments/Clients developing European 3PL client Financials/Metrics • Four commercial clients + a number of Primary Sectors • 15 employees (LinkedIn) trials • Ecommerce, Industrial • Raised funds from Odyssey Venture Primary Sectors alongside pure Financials/Metrics Partners (backed by EIF) • Ecommerce & multi-channel retailers, • 33 employees Strategy 3PL’s AMR’s • Raised capital from primarily angel • Three patents pending Financials/Metrics investors including Gigi Levy • Raised $5.3m; backers: Alexandr Strategy Boyko, Enterprise Ireland • Distributors include Viastore Systems • 34 employees (LinkedIn) Eiratech has developed the (Europe) based in Germany (a global Strategy top 20 shuttle manufacturer) and ST • Jan 2019, part of EIT Digital Accelerator Eiracube (a store) and Engineering (Asia) (EU) • Developing and testing fleet others target the grocery management capabilities within the sector Eirasoft RMS to manage both own and 3rd party AMRs & AGVs

OP1 BB2 Published by STIQ Ltd, United Kingdom www.styleintelligence.com 24 PROFILES Capabilities Capabilities Capabilities AMR/PA-AMR • AMR • Wide range of interior material • Storojet; a tugging AMR working • Tugger handling technologies including similar to a multi-storey car park in • Forklift; AGV conveyors, stacker cranes, shuttle architecture; pulling a sled with totes Organisation ASRS, SimplePick picking stations, on top • Based in Germany goods lifts Organisation Deployments/Clients • Karis; Autonomous AGV • Based in Germany • n/a • GridPick; PA-AMR (pictured below) • Storojet is developed and sold by ICO Primary Sectors Organisation Innovative Computer GmbH A number of • Various industrial • Based in Germany with offices in the Deployments/Clients • Targeting warehouse & material US, Poland and Austria • n/a new German handling industries with G2P range Deployments/Clients Primary Sectors Financials/Metrics • n/a • Retail, ecommerce, warehouse • Estimated revenue $480m in 2018 Primary Sectors Financials/Metrics suppliers in the Strategy • Any materials handling • 19 employees (LinkedIn) • Ex-supplier to Swisslog Financials/Metrics Strategy market • The company states they have 500 • DACH market focus employees (website Feb 2019) Strategy • n/a Various approaches to G2P solutions; Grenzebach offering the widest range of the new German competitors

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 25 PROFILES ✓ ✓ Capabilities Capabilities Capabilities • 1x PA-AMR with lift and suction • IAM Swift, a PA-AMR with articulated • Toru; specialist footwear (boxes), PA-AMR grabber mechanism to gather totes or arm & picking mechanism (suction) carries up to 16 boxes at any one time, paper boxes containing products for • IAM Flash, a solution for product suction grabber, height reach 8- delivery to & return from photography and advanced 250cm’s , 8hrs running time pick/processing area. Capability to merchandise data collection, such as • Soto; industrial applications, carry <20Kg’s dimensions, etc. operational up to 18hrs/day Organisation • IAM Swiftlink, software Organisation • Based in California, US Organisation • Based in Germany Deployments/Clients • Based in Pittsburgh, USA Deployments/Clients PA-AMR • Hollar.com, Rakuten Super Logistics (3x • IAM’s current CEO, Joel Reed, joined • Fiege, DHL, Swisslog, SigLoch, BMW, locations), LD Products, Tobi the company in Aug 2017 (CEO, Aug ITG Logistics • 300 robots deployed to date. This will 2018) Primary Sectors suppliers with increase to 1,000 by end of 2019 • Appointed Joe Nentwig (ex- • Footwear ecommerce warehouse, Primary Sectors Intelligrated & Quiet Logistics) as VP of Industrial • Ecommerce warehouse Sales in 2018 Financials/Metrics gripping Financials/Metrics Deployments/Clients • Increased staff to 75 in Feb 2019 from • Raised $29m (latest; Series B, Aug • Rochester Pharmacy Corp 66 in 1Q18 (LinkedIn) mechanisms 2018, $20m) from investors including Primary Sectors • Raised $25.4m (latest; Series A, Feb Embark Ventures, Upfront Ventures • Pharmaceutical, FMCG/CPG 2018, $24.8m) from investors including and Point72 Ventures Financials/Metrics HTGF, EIT Digital Accelerator, Siemens • 58 staff • Raised $21m (latest; Venture Round in (Next 47), Zalando, Koerber Group Primary tote/box grabbing • 9 patents Nov 2018, $20m) from investors Strategy Strategy including KCK, Innovation Works, • Advisory board members from technology used is • Only RaaS model Fusion Fund, and Comet Labs companies including Fiege (3PL), • Rakuten Super Logistics will be Strategy Koerber, ODU, VDI, Exaleap, Next47 vacuum/ suction expanding with inVia as a partner • The company launched its flagship (Siemens investment vehicle) • Focus on the US market, software product for general sale in 2018 development • Announced partnership with DB Schenker in Oct 2018 (source)

Soto

Toro

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 26 PROFILES ✓ ✓ ✓ Capabilities Capabilities Capabilities • Chuck & Chuck+; 2X PA-AMR, payload • TM100; PA-AMR, adjustable • LocusBot; PA-AMR, payload max PA-AMR 73Kg’s, multiple & flexible options to permanent height from 12-60cm’s, 18Kg’s, speed 1.4m/s, battery adjust for business case mechanical/vacuum/lifting grippers. operation 14hrs Organisation Workflow is designed to deliver & • LocusServer; RMS integrated with • Based in MA, US collect picking totes to/from aisles for HighJump, UPP, JDA & Manhattan • A quarter of the organisation is ex-Kiva pickers Associates Deployments/Clients • Material handling software • LocusView; Locus system status view • >300 robots deployed at >30 clients, Organisation • LocusManager; mobile app including Act Fulfilment, Healing • Based in Boston, US Organisation Hands, Medline, Bleckmann, DHL, XPO, Deployments/Clients • Based in MA, US Boston, US is a Office Depot and Lockheed Martin • Initial deployments in logistics and • Spun-out from Quiet Logistics (ex-Kiva Primary Sectors manufacturing Systems customer) robotics melting • Ecommerce, 3PL, Manufacturing, Retail Primary Sectors Deployments/Clients Financials/Metrics • Warehouse, ecommerce • Multiple deployments (>20), including • Raised $46m (latest, Series B, Jan 2018, Financials/Metrics DHL Supply Chain, Quiet Logistics, pot $25m) from investors including Menlo • Raised $2m (latest, Seed, Jul 2017, GEODIS (175 bots), Port Logistics, Ventures, Norwest Venture Partners, $1.5m) from investors including Radial, Barrett Distribution Eclipse Ventures and iRobot Corp Portfolia. Board member from Golden Primary Sectors • 133 employees (LinkedIn) Seeds/Supply Chain Ventures • Ecommerce, 3PL, Warehouse Numerous PA-AMR and • 3 co-founders (incl. 2 ex-Kiva Systems) • 2 patents granted Financials/Metrics • 2 patent applications • 11 employees • Raised $33m (latest, Series B, Nov AGV suppliers in the area; Strategy Strategy 2017, $25m) from investors including many with ex-Kiva • Focusing on North America and Europe • Signed reseller agreement with Hy-Tek Scale Venture Partners (also invested in • Increasing the use of robotics to Material Handling in Dec 2018 Soft Robotics), Quiet Logistics employees on the payroll include replenishment and other Strategy orchestration • RaaS model

Options Published by STIQ Ltd, United Kingdom www.styleintelligence.com 27 PROFILES Capabilities Capabilities Capabilities • Retriever; PA-AMR, 10 load locations; • 1x PA-AMR (AVG limited range – not • PA-AMR (Released Nov 2018 – PA-AMR capacity 500Kg’s included in the report) available from May 2019); priced at • Pallet Jack; capacity 3.6t’s, speed 2m/s • Wide range of robotics CNY 98k (c. $14.2k) (source), 10hrs • Conveyor; capacity 500Kg’s, speed Organisation operation, speed 1.2m/s, 50Kg’s 2m/s • Based in Shenzhen, China payload • Tugger; capacity 4.5t’s, speed 2m/s • Siasun Robotics & Automation is a Organisation • User interface (picking assistance) listed company [300024.SZ] • Based in Shenzhen, China A number of Organisation Deployments/Clients • GM is ex-Alibaba Robotics product • Based in MA, US • Multiple manager suppliers target • Vecna Robotics was spun out from Primary Sectors Deployments/Clients Vecna Technologies in 4Q18 in a deal • Multiple • JD Logistics backed by Drive Capital Financials/Metrics Primary Sectors niche audiences • Dan Patt, the new CEO, joined in 2018 • The Siasun group posted revenue of • Warehouse, 3PL, Ecommerce Deployments/Clients CNY2.4bn (c. $360m) in 2017, up Financials/Metrics • Multiple, including Milton CAT 20.6% from 2016 • Raised $1.2m (latest Seed) from Primary Sectors Strategy investors including FutureCap Vecna has produced a • Industrial, warehouse • The strategy of the company is to offer • Circa <10 employees (STIQ estimate) Financials/Metrics robotics of any kind, in the home and Strategy range of AGV’s whereas • Raised $13.5m (latest, Venture, Aug in manufacturing as well as • A limited 100pcs will be available to Siasun which is known for 2018, $13.5m) from investors including ecommerce and warehousing Chinese customers. Its commercial Drive Capital viability and suitability for a live its articulated robotic arms • 77 employees (LinkedIn) environment is still to be confirmed Strategy • Product design appears an important has added an AMR. Syrius • Focus on North America, industrial part of Syrius product appears to have developed applications a PA-AMR into a designer product

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 28 PROFILES ✓ ✓ Capabilities Capabilities Capabilities • Fetch provides PA-AMR’s for a number • MiR100, 200, 500; 3X PA-AMR’s, • PA-AMR; 3D vision, flexible set-up PA-AMR of applications: payload 100/200/500Kg’s. MiR 100 & Organisation • HMIShelf; for moving goods between 200 can be converted to towing robots • Based in CO, US pick and processing locations Organisation Deployments/Clients • Mobile conveyor/roller-top • Acquired by Teradyne [NASDAQ:TER] • n/a • Cart Connect; tugging robot in 2018. Operates as a separate Primary Sectors • Freight 500 & 1500; for larger payloads company within division of other • Manufacturing, warehouse, Industrial use such as pallets robotics companies ecommerce, logistics • FetchCore; software for managing and Deployments/Clients Financials orchestrating robotics • Multiple including Visteon, • Raised $15m (latest, Series A, Dec cases are • There are also options for adding Primary Sectors 2017, $15m) from investors including functionality such as RFID readers for • Industrial & manufacturing is the Xplorer Capital, AME Cloud Ventures, common among inventory checks, articulated arms for primary client base. Ecommerce Morado Ventures, Playground Global picking, etc. represents a relatively small share (also invested in CommonSense and Organisation Financials Righthand Robotics), Visionnaire some PA-AMR’s • US office • $31m revenue in 2018, up from $12m Ventures and Heroic Ventures Deployments/Clients in 2017 • 45 employees (LinkedIn). 14 open • “A few dozen” including Ryder, RK Strategy positions Feb 11, 2019 (website) Distribution, DHL and Framebridge • Expanding product assortment to Strategy A number of PA-AMR’s Primary Sectors enable plug & play capabilities within • Focus on North America • Ecommerce, warehouse different client types. MiR increased its overlap with ecommerce Financials range to 30 from 14 products between warehouse applications; • Raised $48m (latest series B, Dec 2017, 2017 and 2018 $25m) from investors including Shasta • Introduced heavy duty robot in 2018, primary applications are Ventures, Softbank and Sway Ventures carrying 500kg’s industrial & material Strategy • Distribution business model; no direct • In October 2018, Fetch and Honeywell to end-user internal sales company. handling use cases Intelligrated announced a partnership Fully focused on product development whereby Honeywell will resell/offer Fetch PA-AMR’s to its customer base (source)

MiR-100 MiR-200 MiR-500 Published by STIQ Ltd, United Kingdom www.styleintelligence.com 29 PROFILES Capabilities Capabilities Capabilities • 1X PA-AMR • Mark 1; PA-AMR, 6 bins, payload • Single PA-AMR for tugging shelving PA-AMR Organisation 20Kg’s/bin, speed 1.2m/s, 6hrs units • Based in India operation Organisation Deployments/Clients • Mini; PA-AMR, 1 bin, payload 50Kg’s, • Based in the UK • n/a speed 1.2m/s, 12hrs operation Deployments/Clients Primary Sectors • Mark 2; PA-AMR for pallet load, • DK Fulfilment (DKF) Ltd • Warehouse payload <1t’s, speed 0.8m/s, 8hrs Primary Sectors Financials/Metrics operation • 3PL/ Warehouse • 6 employees (LinkedIn) • ARK Sorter; arm-based sorting system Financials/Metrics Strategy (launched Sep 2018) • 6 employees (LinkedIn) • n/a Organisation Strategy • Based in India • Appears to be a spin-out from Imperial Deployments/Clients College, London, UK The unknown • n/a Primary Sectors quantities… • Warehouse, 3PL Financials/Metrics • 10 employees (LinkedIn) – a decline from 11 in the 2018 G2P report Strategy Companies with a single • STIQ’s view: The company may be an product OEM supplier or IP licensor as there has not been any significant change in staff numbers or [available] products. The introduction of a sorter looks as if the company aims to become a GreyOrange. There are no photos of Mini or Mark 2 available on the website

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 30 PROFILES ✓ Capabilities Capabilities Capabilities HYBRIDS • Retrofit robotic track; the track is • AVG which is moving according to a • Perfect Pick; introduced in 2015, retrofitted on the front of warehouse floor-marked route (source). Using encapsulated ASRS shuttle system with racking Mecanum wheels 15 iBots per system, <400 picks/hr • SqUID; a hybrid AMR robot which can Organisation • Perfect Pick HD; introduced in 2017 also climb up existing warehouse • Based in the US Organisation infrastructure (racking or similar) on a Deployments/Clients • Based in the US with global offices retrofitted track. Suction grabbing • In-house, planned to deploy 40 PA- Deployments/Clients mechanism is used to capture boxes AMR’s in 2018 (source) • Newegg (4 picking stations, 4,400 Hybrids and totes for delivery to and from a Primary Sectors SKU’s in 3,500 totes, 30 iBots), Hudson processing, picking or packing location • Grocery, FMCG/CPG Bay Corporation, BHFO.com, iHerbs, Organisation Financials/Metrics Primary Sectors emerging from a • Founded in 2014, based in Israel with • Boxed is primarily a retailer/whole • Ecommerce presence in the US seller of FMCG/CPG Financials/Metrics Deployments/Clients • Raised $243.6m (latest, Series D, Aug • 1,000 employees in 2015 variety of • Two planned pilots 2018, $111m) from investors including • Revenue estimates at $1bn Primary Sectors AEON, CDIB Capital, Alpha Square Strategy directions • Warehouse Group, GGV Capital, Vaizra Capital, • Opex has traditionally manufactured Financials/Metrics Light Street Capital and Safra Partners mailing room and document • Pre-revenue • Each PA-AMR costs $6,000 to make management equipment (similar to • 5 employees (LinkedIn) and is produced from off-the-shelf Pitney Bowes) and released its Perfect Strategy products Pick product in 2015 Interesting new • Pilots, US market • 216 employees (LinkedIn) developments popping up Strategy • Similarly to Ocado, Boxed has taken from stealth and internally the approach that they can create from unrelated businesses automation in-house best. It remains to be seen if Boxed will start offering the robots (AVG’s) on the open market any time soon

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 31 hours, Bastian Solutions PROFILES ✓ ✓ Capabilities Capabilities Capabilities • Cube ASRS system, new hardware • Cube storage system • Partnered with Knapp shuttles to ASRS robotic version “Black Line” released in Organisation create robot powered local grocery Jan 2019 • Ocado Technology is a division of warehouses Organisation Ocado Plc [LON: OCDO] Organisation • Majority stake (82%) acquired in 2017 Deployments/Clients • Based in MA, US by Nordic PE group EQT Partners • Sobeys, Morrisons, Casino, Kroger, Deployments/Clients Deployments/Clients ICA, BonPreu • Six customers, including Sedanos, • 300+ deployments globally Primary Sectors Albertsons, Ahold Delhaize and Cube storage is • ActiveAnts, Puma, Boozt, Asda, Parts • Grocery Wakefern Food Corp. Town, Lufthansa, Varner Retail, Yusen Financials/Metrics Primary Sectors Logistics, Avnet, Ocado • 2018 revenue £1.6bn, up 12% on • Grocery, FMCG/CPG highly space Primary Sectors 2017. Solutions (Ocado Technology) Financials/Metrics • Ecommerce warehouse revenue £123m, up 16% on 2017 • Raised $65m (latest, Series B, Nov Financials/Metrics • Kroger will spend $55m on building 2018) from investors including IGNIA, efficient and has • FY18 revenue NOK1.2bn the first Ocado Tech shed in Ohio Forrestal Capital (among 10+ investors) Strategy (source) • 140 employees (website) with 9 open gained traction • AutoStore focus on R&D of the ASRS Strategy positions (Mar-19). Plans for 200 product. Installation & integration is • Ocado Technology has become a employees at end of 2019 executed by partners such as SwissLog separate division of Ocado which sells Strategy and Element Logistics (or leases out) the technology to • Creating local online fulfilment grocery A trend towards high space • Partners include Element Logistics, AM grocers warehouses utilising partnerships with Automation, Swisslog (KUKA), • The company spends significant technology providers, such as Knapp utilisation for online Hormann Logistik, Bastian Solutions amounts on R&D • Will have 15 sites live in 2019 with (TICO), Dematic (Kion), LG CNS, • Outsources manufacturing of its another 75 in 2020 grocery fulfilment; new Okamura, Alstef robots to Tharsus, a UK company business models emerging • Larger totes are being launched in 2019 to compete with shuttle systems and widen the addressable market • Black Line achieves up to 600 picks per hour compared to c. 250 for Red Line

Note: At the time of our interview request Ocado experienced a fire at one of its automated warehouses in the UK (source) and declined to take part

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 32 PROFILES ✓ ✓ ✓ Capabilities Capabilities Capabilities • Alphabot, a ‘true 3D’ ASRS robot for • Crane operated stacker system which • Skypod (robot), moves to/from ASRS deployment within grocery stores moves totes to AMR’s grid/cube storage to picking area with (initial use case) • AMR’s collect/deliver totes from/to a tote. Capacity for ~30Kg’s • One feature of the system is the cranes (beneath the storage structure) • Storage grid up to 10m possibility to add multi-floor picking and deliver/collects from/to a Organisation areas processing area • Based in Lille, France Organisation • The system is deployed within existing • Founders are ex-GE Healthcare • Based in Boston, USA high street stores, creating local store robotics A perceived low • Started in 2013 by John Lert, the fulfilment hubs with a 1hr click & Deployments/Clients founder of CasePick Systems (acquired collect promise • CDiscount (2 deployments) +2 online grocery by Symbiotic), and Bill Fosnight Organisation Primary Sectors Deployments/Clients • Based in Israel • Grocery, Ecommerce, 3PL, Industry • Walmart Deployments/Clients Financials/Metrics penetration has Primary Sectors • n/a • Raised $21.2m (latest Series B, €15m, • Grocery, Retail Primary Sectors May 2018) from investors including Financials/Metrics • Grocery 360 Capital Partners, Breega Capital attracted players • 79 employees in Feb 2019 (LinkedIn) Financials/Metrics and Iris Capital Strategy • 92 employees in Feb 2019 (LinkedIn) • Revenue circa €7m in 2018 • Collaboration with WalMart (source) • Raised $26m (latest Series A, $20m, • 42 employees in Feb 2019 (LinkedIn) • The company’s mission is to “Re-invent Feb 2018) from investors including with 28 job adverts Plenty of experimentation retailing by the use of robots” Innovation Endeavors, Aleph, and Strategy with robotics in the • Aims to increase pick rate from current Playground Global • The 2018 investment will allow the 800 picks/hr to 1,200 picks/hr (source) Strategy company to deliver an additional 1,000 grocery space; pivoting • The company has invested in a lot of robots. (source) Aiming for 4 PR for its use case in the grocery sector production lines in 2020, up from 2 in towards store-based • Targeting grocery sector to utilise 2018. Each line is capable of producing deployments urban retail space into fulfilment 300 Skypods per year (source) spaces • Exotec partnered with Cdiscount in • Plans to partner with 5 of the leading 2016 US grocers in 2019 & 2020 to deploy its system and robots (source) • PAYG/ RaaS model

Published by STIQ Ltd, United Kingdom www.styleintelligence.com 33 PROFILES ✓ ✓ Capabilities Capabilities Capabilities • ASRS system with a cube storage set- • Parcel lockers and robotic parcel • Ecosystem of picking, packing, sorting, ASRS up; 3D robotic goods-to-person solutions; 401 aka ‘parcel tower’; 402 and shipping goods. The solutions storage, retrieval and real-time order robotic parcel terminal (used by Zara) handle both D2C eCommerce and pick- fulfilment Organisation up-in-store orders as well as store Organisation • Based in Estonia replenishment orders for restocking • Based in Canada Deployments/Clients Organisation Ongoing Deployments/Clients • Walmart, Asda, Zara/Inditex • Based in the US. Offices in Boston and • n/a Primary Sectors Pittsburgh experimentation Primary Sectors • Parcel/Last mile • Founded by Tom Wagner, former CTO • E-commerce, Logistics, Retail, Grocery Financials/Metrics at iRobot and Advanced Manufacturing • 2018 revenue €47m, an increase of c. Deployments/Clients among suppliers Financials/Metrics 1,300% from 2016 • Several of the top 100 US retailers • Raised $5.8m (latest Series, 2018) from • 210 employees (company) (according to media reports and investors including ForeRunner • Majority-owned by the original website). The company aims to Ventures, Western Innovation founders publicise a number of clients during Cleveron & Opex are two Initiative, The Opportunity Calgary Strategy 2019 Investment Fund ($4.5m grant) • Developing a robotic grocery click & Primary Sectors samples of auxiliary and • “ATTABotics has seen explosive growth collect solution; a self-driving robot • Retail, CPG/FMCG (currently) hermetically sealed ASRS since its founding in 2016, and courier which delivers to your personal Financials/Metrics currently has 60 open job postings”. Its parcel locker; and a drone • Investors include Khosla Ventures and that there are current employee count is 115 (source) (2013), New Enterprise Associates Strategy (NEA), and Canaan Partners numerous other suppliers • Various claims to “Reduce E-Commerce • 32 patent applications (source) of such systems; Fulfilment Costs by 75%” and “Reduce • 38 open positions in Mar 2019 space requirement by 85%” Strategy ATTAbotics (stealth mode) • The company turned down STIQ’s • The company was founded in 2013. declined our interview request for an interview However, a lot of senior people including sales were not recruited until request mid-late 2018 (Linkedin) • Concentrating on North America

Source: image from one of 32 patent applications by Berkshire Grey Published by STIQ Ltd, United Kingdom www.styleintelligence.com 34 INDUSTRY EXPERTS SUPPLIERS INTERVIEWS Company Position Company Position 722 Consulting Partner 6 River Systems CEO Apex Insight Managing Director Alert Innovation CEO & Founder Boozt Project Director AutoStore Strategy Director CoGri Group CEO Berkshire Grey VP Marketing Element Logic UK Managing Director BionicHIVE VP Sales & Marketing US EQT Partner Caja Systems VP Business Development Fortna VP Cleveron Co-founder Flipkart Anonymous Eiratech CEO STIQ spoke to HighJump CMO/SVP Exotec Sales Director HighJump CTO Fetch Robots Director of Product Marketing multiple experts Honeywell Intelligrated Director of Strategic Marketing Flashhold/Quicktron International Sales Manager Honeywell Intelligrated VP Business Development Geek+ Marketing Director Hyundai New Business Strategy Team HIK Vision GM HIK Robotics and suppliers to Intel VP IoT Group & GM Visual Retail IAM Robotics CEO JDA VP Product Development inVia Robotics CMO John Lewis Head of DC Operations Locus CMO form a view of John Lewis Member of the Board NextShift Robotics EVP Sales & Marketing JungHeinrich VP Product Management Prime Robotics CEO the market Jungheinrich Member of the Board Righthand Robotics Co-Founder Jungheinrich Director of Logistics Systems Scallog CEO Director Business Development & Soft Robotics Marketing Manager KNAPP Marketing Swisslog Head of Portfolio Management STIQ also visited a number Kollmorgen Director of Product Management Takeoff Technologies CEO, Co-founder Körber Logistics CTO of international trade Maginus COO Manhattan Associates VP Product Marketing shows to view solutions Manhattan Associates VP Product Management and get first hand insight Manhattan Associates UK Managing Director Selected trade shows with G2P presence Metapack UK Sales Director on new product releases PostNord TPL Business Development Director LogiMAT, Link Automaticon, Link RoVi Co-founder Global Industrie, Link CeMAT, Link EuroCIS, Link Ryder Group Director of Solutions Design Savills Director of Research NRF, Link STILL Sr Director Automate, Link Teradyne VP Corporate Relations Pack Expo, Link Tompkins Robotics VP Operations ATX West, Link Vanderlande Sr Systems Engineer ProMAT, Link ModexShow, Link MecSpe, Link ZigZag Global CEO Advanced Factories, Link Source: STIQ research, sample trade shows, not an exhaustive list Published by STIQ Ltd, United Kingdom www.styleintelligence.com 35 Distribution of this copy sponsored by

ABOUT STIQ Contact for this report: Styleintelligence is a publisher of retail and retail technology Thomas Andersson specific reports (from retail Supply Chain technology to Artificial Intelligence & personalisation) . Senior Retail Technology Editor Our distribution is made up from circa 5,000 senior [email protected] management readers by email. We estimate our indirect distribution is an additional 5,000 readers. +44 7870 210529 Connect with me on LinkedIn STIQ’S AUDIENCE Readers of the 2018 G2P report included decision-makers at: • Co-founder of STIQ t/a Styleintelligence and its Senior Retail Lazada, Flipkart, Gap, Asos, Zalando, Boozt, Chanel, LVMH, Technology (B2B + B2C) specialist/ editor YNAP, Matchesfashion, Goldman Sachs, McKinsey, IDC, Deloitte, • Senior Commercial Due Diligence & Strategy Consultant for VC, PE & Credit Suisse, Richemont, Farfetch, PVH, IKEA, Shop Direct, industry buyers Nordstrom, Auchan, Tesco, KLA Tencor, Teradyne, Home Depot, • Editorial contributor and analyst to InternetRetailing & RetailX on Li & Fung, BT, EY, Under Armour, Nike, Adidas, Genesco, DHL, retail sector reports Hermes, Schaeffler, Hyundai, Honeywell, Walmart, and • Evaluator at Vinnova, the Swedish Innovation agency, for retail Walgreen Boots among many others… technology R&D grant applications

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