We are now firmly into 2022. So much so, I am no longer making the mistake of writing ‘2021’ in my notebook! We are very excited about 2022 at BoxLogic and are looking forward to making strides forward as a business – working with new clients, delivering even more for our existing customers, and further building our team of consultants. But no matter how fast times change, we should always make time to take stock and reflect on the successes and challenges that we have faced. So, what did 2021 look like for BoxLogic and what does it mean for 2022?
2021 represented a year of fantastic growth for our business. We managed to increase revenue by 50% versus 2020, a significant level above our original target. What was especially pleasing was that the growth was almost entirely generated from existing clients. For us, this is the greatest testimonial that we can receive – demonstrating the trust that our clients have in us that every new piece of work will be delivered to the same high quality as the last.
We were also able to win work with 12 new customers that came from a wide range of sectors including FMCG, ecommerce, food and beverages, utilities, and packaging. The projects included warehouse design projects, warehouse automation, distribution network design and warehouse management system selection. We are already seeing some of these new customers come back with new and interesting projects for our team after successful delivery of the initial scope.
The logistics sector has faced many challenges over the last couple of years. Brexit has reduced labour availability in the UK and created complexities in cross border trade. The coronavirus pandemic is easing, and we are beginning to imagine life after, or at least, with COVID, but it exacerbated labour shortages as people isolated and drove a surge in online shopping that looks to have become a permanent habit in retail, grocery and even beyond.
In this context, we have seen strong demand for our core services in distribution network design and warehouse design; accounting for 80% of our total revenue. The growth of online retail is creating significant demand for new warehousing. Cost pressures and shortages in the labour market are leading to more customers considering the investment in automated technology in their warehouse operations. Our team’s experience means that we are well placed to support our clients in this area.
We are also seeing more customers acknowledging the need to invest in warehouse management systems (WMS) to drive efficiencies in their warehouse. This has resulted in a couple of exciting projects to support our clients to review their operational processes and select appropriate logistics systems that will provide the step change in functionality and efficiency.
We couldn’t have done any of this without exceptional people. We were delighted to welcome two new consultants to the team last year: Belinda Scott as Senior Consultant and Harry Stafford as Consultant. They have been instrumental to the success of BoxLogic, and our customers, and we look forward to developing the team further. Expanding the team is a key priority for us and we are looking for talented, solution-orientated logisticians to improve our capability and capacity.
So, what does this mean for us in 2022? We are focused on delivering excellent results for our clients. If we stick to that fundamental principle, we can develop long-term partnerships based on high quality, independent advice to help businesses navigate the challenges facing the sector. And hopefully we can take some time in 2023 to reflect on an exciting and rewarding 2022.