In this month's Limburg edition of ZO, the UNIZO magazine for independent entrepreneurs, you can read an interview with Daniel. Among other things, he talks about the challenges we have faced over the years, our approach, and our growth. Don't have a copy of ZO magazine to hand? Read the full interview here.
Online shopping is on the rise. Everyone orders something online from time to time to have it conveniently delivered to their home. More and more traditional retailers are also recognizing the advantages of a web shop, especially if they can outsource the logistics. With its integrated e-commerce approach, BME is successfully responding to this trend.
"BME actually started out as a hobby that got out of hand," says Daniel Ciccodemarco, who founded the company together with his childhood friend Chris Pietermans. I worked for fourteen years as an employee for a large logistics company, where I went through the entire process. Chris was a process manager at an IT company. We developed web shops as a side business. When we were asked to organize the logistics behind a customer's web shop, we seized the opportunity with both hands. We rented a small warehouse in Geel of about 300 m2, where we also set up logistics systems for other customers. Once we got started, we were overwhelmed by the many requests.”
Formula with potential
"We took care of the webshop, the server, the graphic design services, the translation, the logistics, the inventory management, the payment service, and even the Google ads. We wanted to take care of everything for our customers." It was a formula that proved popular. "When we noticed that our concept was catching on and that there was still a lot more potential, we started looking for a new investor. This allowed us to focus fully on growth. In 2015, Koen Vanderweyden joined the story and took on the financial side of things. After a number of capital rounds, we now have six partners, three of whom are active participants."
The big change
The entrepreneurs went in search of new premises, which they found on Henry Fordlaan in Genk. This marked a turning point for the company. And also the biggest learning moment. "When we moved, we divided the 5,500 m² warehouse into two parts. In one part, we replicated the system we had set up in Geel to continue serving our existing customers. Next to it, we built a new warehouse layout with a new software system to which we systematically connected our customers. We invested heavily in digitization so that we could respond flexibly to our customers' requests. This enables us, as a logistics service provider, to add value to our customers' strategy. In the early days, we experienced some teething problems, but it was also not easy for our people to work in a different way. In addition, we suddenly had to recruit a lot of extra staff, which we did not have much experience with either.
Professionalizing to grow
In order to sustain exponential growth, a strong focus was placed onprofessionalization, including in personnel policy. "In the beginning, we made a number of mistakes in this area, which led to high staff turnover. But we learned from those mistakes. We realized that attracting the right people is not simply a matter of posting a job vacancy."
“That is why we identified the company's values and used them to develop a personnel plan. A clear framework was created with procedures, without affecting the family atmosphere. We put our people first and give them the space and freedom to make mistakes and learn from them. Do they have a problem? Even then, they can always come to us. There is plenty of room to grow, as long as the core values are upheld. This approach is bearing fruit, and we are very happy about that. Because as an entrepreneur, you can have the best ideas, but if your people are not on board, you're out of luck.
Diversification of customer base
The transformation that the company underwent three years ago also meant an expansion of its customer base. "Whereas we used to mainly have pure B2C webshops as customers, we are now also bringing more companies on board that are manufacturers/license holders. Such companies focus on both the B2B and B2C markets, have multiple sales channels, and prefer to organize their logistics from a single warehouse. This requires a completely different approach, in which digital processes are becoming increasingly important."
BME now has around sixty clients in its portfolio from Belgium and abroad, representing a wide range of sectors. "Think, for example, of everything related to food, healthcare, fashion, and cosmetics. Most of our clients are Belgian companies, but we also have clients from the Netherlands, Ireland, France, and we are receiving more and more requests from England. Because of Brexit, more and more companies want to organize their logistics on the mainland."
Unique approach
The key to success? "Perhaps it's our unique approach. When we receive a request, we invest a lot of effort in maintaining contact with our customer. And we do this at every stage. From the initial consultation, through to the moment the customer is fully integrated into the system, right up to operational implementation.Everycustomer is unique and requires a tailored approach. That's why we look at how someone's business model works and how we can adapt to it within a certain playing field. This means that our customers don't have to make any major structural changes and can continue to apply their customer strategy to us as a logistics service provider. What's more, we are very transparent in our communication. Customers know exactly where they stand when they decide to work with us. These are all strong assets that set us apart from the competition."
Continue to invest and dare to try
“We stay ahead by continuing to invest heavily in our IT system. This is a continuous improvement process that we work on every day. It is also important to stay abreast of new developments and technologies in related markets and then investigate which processes can be integrated. You shouldn't always try to reinvent the wheel yourself. That's why, six months ago, we set up an advisory board alongside our board of directors to give the company some extra breathing space. In this board, we develop four ideas from concept to concrete business case. We are currently working on two ideas, which you will undoubtedly hear more about by the end of the year." Innovating and investing means daring to try and failing.
BME 2.0
According to Daniel, the biggest challenge is exponential growth. "Things are moving fast. Every year, we double our turnover and our workforce is also growing. We are planning to recruit around 10 new employees in 2018. We are also very ambitious and want to become the benchmark in the market as an e-fulfillment service provider. Gaining a foothold abroad is therefore definitely one of our objectives for the future.