Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) has signed an agreement with Israeli startup Commonsense Robotics to build 12 robotics installations to provide online ordering services using an advanced robot technology solution.
In the first stage, two sites will be set up and begin operating by the end of 2019; 10 more sites will be set up in the second stage and begin operating by the end of July 2021. These sites will provide services and assistance for nationwide online consumer sales.
The service provider will provide services including receiving, storing, sorting, and packing items ordered online by the customer through the use of advanced robot technology.
The parties agreed that starting in the third year of activity, the minimum number of orders would be thousands of daily orders from the sites. Rami Levy will pay the service provider an advance for construction of each site (secured by collateral); the advance will be deducted from the monthly payments to the service provider for services. Rami Levy adds that the amount of the advance paid to the service provider for each site is non-substantial for the company.
The agreement sets a monthly payment for the service provider as a percentage of the prices of the ordered products, with a fixed minimum amount, minus the advance and other deductions listed in the agreement.
The service provider has undertaken to maintain a given level of service, with a compensation mechanism for the company in the event of malfunctions.
Rami Levy said that it "regards this agreement as a significant measure in the framework of its strategy for providing consumers with service and quality, while taking action to expand and streamline its online sales and reducing its operating costs."
Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018