Lund-based SiB Solutions was founded in 2017 with a vision of error-free logistics and a service based on so-called intelligent video analysis. The service consists of proprietary software used to reduce costs in customers’ quality assurance efforts and to identify, report, and minimize incorrect deliveries. Over the years, the company has grown steadily, and for the past couple of years, it has been undergoing a successful international expansion.
“We closed our very first deal outside of Sweden in early 2021 with Scania in Belgium. In 2022, we launched an ambitious expansion plan and established subsidiaries in the Netherlands, the United Kingdom, and the United States,” says Stefan Borg, CEO of SiB Solutions and one of the company’s three founders.
Despite a volatile external environment characterized by high interest rates and global disruptions, interest in the company’s services is growing, both among existing customers and in the market at large.
– We’ve decided to focus on our current market and are prioritizing international growth with Swedish customers who also have operations in other countries. Once we’ve launched a solution and established a proof-of-concept, it’s easier to sell our service to their other units both in and outside Sweden. So says Staffan Persson, Global Presales Director and co-founder of SiB Solutions, who has more than 25 years of experience in the logistics industry, both in the Nordic region and internationally.
“We’re now a major player in Sweden, and we have customers in Norway and Belgium, among other places, as well as ongoing discussions in Finland and Denmark—and we’re expanding into quite a few new countries. “So there will be several new flags to show off by the end of this year,” says Staffan with a slightly mysterious smile.
More aggressive initiatives globally
The biggest difference between Sweden and the priority markets in the EU, the United Kingdom, and the United States is that the facilities there are more numerous and larger. Stefan feels that the initiatives there are significantly more aggressive than in the domestic market and that there is a great willingness to invest in innovative logistics technology.
– In general, our international markets are more open to driving change through technology. Whether it’s a fully manual or a highly automated warehouse, we create value with our service. We’re confident that our solutions will remain relevant well into the future.
A lot can go wrong
Because even though warehouse automation is growing by leaps and bounds in many parts of the world, the overwhelming majority of all warehouse processes are still carried out manually. Errors occur both in manual handling and in tasks performed by robots and other automated systems.
– When we visit a warehouse, we generally look for clear interfaces where goods change hands—for example, from one person to another, from a person to a machine, or from one machine to another. It’s at these interfaces that things can go wrong and disputes can arise over what caused the error. Searchable video is the only technology that can reveal the root cause of all errors, explains Staffan, emphasizing that this technology makes life so much easier for everyone who works with customers and quality assurance.
”Automation Is Not a Self-Playing Piano”
In general, an increasing number of technological solutions are being implemented in warehouses around the world—a wide variety of hardware and software—that are used in connection with receiving goods, storage, and movement of goods, as well as for inventory management, order processing, picking and packing, and delivery. These technologies are primarily intended to increase efficiency and productivity, but they also help reduce errors in handling.
– Along with all kinds of other technology, intelligent video analysis is used to reduce costs, ensure quality, and minimize errors in the processes. “Even when you automate, it’s not a self-playing piano; instead, our service serves as an excellent complement to warehouse automation,” Staffan continues, emphasizing that errors that occur in warehouses can be due to a multitude of factors—both human and otherwise—which the service helps identify and minimize.
From Start-up to Scale-up
As early as 2019, when SiB Solutions received its first round of venture capital, an ambitious plan was drawn up for its continued growth journey. Over the years, both existing owners and new investors have invested in the company, which has laid the groundwork for purposeful, steady growth.
“We’ve stuck to that plan, and we’ve made good progress relative to it. You can always wish things would go faster and better, but we have robust software and a well-functioning service that’s used by customers in eight countries.” “What’s more, our customers are very loyal, and the vast majority of them place additional orders, thereby expanding their subscriptions,” says Stefan.
To date, SiB Solutions has raised capital on four occasions. The total amount raised is 133 million kronor. And now a new ”investment round” is underway and is set to be completed before the end of the year.
– Given our high ambitions, we need to accelerate quickly, and so it would be ideal to secure a larger amount of funding this year from new investors. We’re no longer a startup—we’re a scale-up—and our goal is to scale up fairly quickly.
Focus on Expansion
In order to offer its services to a wider audience and achieve its growth ambitions, the sales organization has been expanded and strengthened in recent years. In Sweden, SiB Solutions currently has offices in Lund and Västerås. In other geographic markets, slightly different organizational models have been tested.
– We will continue to expand into new geographic markets, but this will not require as significant a local presence as we initially thought, since the EU markets can largely be served from Sweden. We have established our own offices with our own staff in the UK and in the U.S., where we have offices in both Dallas and Atlanta. From these regional offices, we and our partners can assist our clients and deliver projects,” says Stefan, noting that many processes can be effectively managed from the headquarters in Lund, which both minimizes risk and saves money.
Since SiB Solutions uses local subcontractors to install servers, cameras, and other technology, the company is not required to have a local presence everywhere. Configuration and training can be provided remotely, which facilitates the company’s ongoing expansion.
”A clear business case”
– För de företag som önskar gör vi ett genomarbetat beslutsunderlag i form av ett tydligt business case som visar på besparingspotentialen med vår tjänst. Det gör vi för att det ska bli lättare för en logistikchef eller en lagerchef att fatta beslut om en teknik som oftast är ny och oprövad för den blivande kunden, förklarar Staffan.
Despite some impatience over the fact that sales processes take time, Stefan emphasizes that the company is delivering according to an aggressive growth plan, with a goal of growing 80 percent annually. Under that plan, significant amounts will be invested in international expansion—that is, in personnel, facilities, sales, and product development. As a result, the company will remain in the red for some time to come. But not for much longer.
– We’re making a deliberate, major push to invest in our expansion. “We could already turn a profit fairly quickly, but we’re sticking to our plan, which means we’ll reach break-even by the end of next year—or even sooner than that,” says Stefan.
