Amazon has signed a strategic global supply agreement with a Norwegian warehouse automation company, setting the stage for increased investment in robotics and automated fulfilment.

The agreement between Amazon and AutoStore defines the terms on which the retail giant may procure future warehouse automation products and solutions around the world.

Though the agreement does not contain any purchasing commitments currently, it marks the latest development in the relationship between the two companies. In February, supply chain consultant and former Amazon executive Brittain Ladd reported that AutoStore’s chief commercial officer had spent “several weeks” with Amazon to come to an agreement on terms, strategy, and estimated system purchases.

A source reported to Ladd that the number of automation systems Amazon was likely to purchase by 2030 was “in the double digits”.

Robotics are an increasing area of focus for Amazon. In April’s annual letter to shareholders, chief executive Andy Jassy said that the company now had over one million robots operating in fulfilment centres around the globe. He added that despite the “substantial” progress in recent years, Amazon remains “in the early stages of how we’ll leverage robotics”.

The news is the latest success for AutoStore, which also released its second quarter financial results on Thursday. The company expects to deliver full year revenue of around $700 million after a 43 per cent year-on-year increase in revenue for the quarter and is initiating a $75 million share buyback scheme.

AutoStore already works with major retailers around the world and was revealed in June to be at the heart of a warehouse automation push by Asda that could axe 1,000 jobs around the UK.

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