Three engineers brainstormed an idea in a kitchen. Eight years later, SiB Solutions is no longer a startup but well on its way to becoming a scale-up.
—By all measures, we are a scalable company and ready for rapid global growth, says Stefan Borg, CEO of SiB Solutions.
SiB Solutions is a LogTech company that offers a service aimed at minimizing costly errors in logistics. The idea behind SiB Solutions took shape after the three engineers Staffan, Lennart, and Stefan visited Axis Communications. All three had extensive experience in logistics solutions and shared a strong interest in the field.
They went on a study visit to Axis to, as Stefan puts it, ‘get some inspiration and scout things out.’
Being aware of the many challenges involved in goods handling—those ‘small, annoying discrepancies’—the trio started contemplating what else could be done to prevent common logistics problems.
—A frequent issue is that people unknowingly place the wrong items in a package—wrong type, wrong quantity, and so on, Stefan explains.
During their visit to Axis, the trio had the opportunity to study the company’s video cameras more closely. This sparked a new idea:
—’What if we could film what happens in the warehouse and then process that information?’ That should help eliminate some of these errors immediately, Stefan recalls thinking that day.
The team-to-be had a shared “aha moment.”
Figuring Out the Next Steps
—Afterwards, we met at Lennart’s house to discuss it further, Stefan says.
They quickly agreed that they had to pursue this idea.
—We decided to start a company, says Stefan. We were all at a point in our lives where we had the opportunity to do something different.
And so, it began.
The team set out to develop a video-based IT solution to improve goods’ handling:
—We knew a lot about warehouse management. The idea was to create a solution that supports goods handling within a warehouse, from one end to the other. Warehouse operations are supposed to run smoothly and flawlessly.
—But they rarely do, Stefan says. Even though warehouses are becoming more and more automated, machines also make mistakes. This often happens when conditions change, and errors can escalate quickly. That can become very costly.
The team had found a way to diminish the number of mistakes.
—We believed it would be a great idea to analyze warehouse activities using video data to understand what happens, why it happens, and what can be done about it.
Startup Phase: From Idea to a Startup in Incubation
The team received a tip about the incubator at Ideon Science Park.
—At Ideon, we were welcomed with open arms, Stefan says. It felt right to start here and to receive support in all the aspects needed when launching a company. In the first year, SiB Solutions was merely a side project, as the team members continued working their day jobs.
—We wanted to validate our idea, make sure it was solid, and conduct real-world tests first.
The three engineers received support both inside and outside the incubator, especially from other companies they quickly connected with.
Training sessions, such as sales coaching, were particularly valuable.
Stefan had previously started and built companies, giving him a solid grasp of entrepreneurship. His career had consistently revolved around software and business development.
The three founders each had clearly defined roles:
—We are, says Stefan, a great mix.
Staffan focuses on sales and marketing but also understands technology. Lennart is a hardware and software expert. Stefan takes care of everything else, including securing growth capital, something he enjoys:
—That has been my focus all these years, he says. Early on, we created a step-by-step plan for scaling the business and have raised a total of SEK 170 million over the years. This funding has strengthened the team with expertise in software development, marketing, finance, HR, and everything else needed to build our software and execute our major international expansion.
How It Works
SiB Solutions combines video streams with data from warehouse management systems.
—Our solution records goods handling activities. You can see what goes wrong and why—and act. This saves a lot of time and money.
Their typical customers include spare parts distributors.
—They are highly dependent on error-free processes, as mistakes lead to direct costs for replacement products and unnecessary express shipments. Another key customer group is logistics service providers like PostNord TPL.
—We currently serve four of PostNord TPL’s facilities.
3PL and global manufacturers are key markets.
SiB Solutions sees Third-Party Logistics (3PL) providers and global manufacturers as particularly interesting clients, especially those with operations in multiple locations.
Where Are We Now?
SiB Solutions has already secured several dream clients and is now focused on expanding further into new markets.
—We feel we are in a great position right now, with customers in eight countries across the EU, the UK, and the US.
The company is now aiming for aggressive growth worldwide.
—We expect to reach break-even this year. 2025 will be the year when revenues exceed costs.
Stefan explains that the SiB Solutions team has had a clear plan from the beginning:
—Of course, you need to be agile, especially in such a rapidly changing world. But we have always maintained a five-year strategic plan, reviewed annually—and we have stuck to it.
SiB Solutions is now a scalable company.
—We have developed our own software, proven our sales model, and established a clear, scalable delivery framework with partners in every market. We are present in the EU, the UK, and the US, where we continue to grow.
The next step is Southeast Asia.
SiB Solutions on Their Time in the Incubator
—We have grown alongside the incubator and Ideon Science Park. We participated in the incubator program for two years, which was incredibly valuable for us. We have greatly benefited from the network we built at Ideon.
