The CEO on Navigating Growth & Digital Shifts in Uncertain Times

2022 was a successful year for Ongoing despite a weak sentiment in the economy. How has the first half of 2023 been for Ongoing? 

– Yes, 2022 was a strong year for Ongoing. We gained many new customers and there was good momentum among our existing clients. In the first quarter of 2023, we observed a more cautious stance. It took longer to acquire new customers, and we felt that companies and consumers were holding onto their money more. In the second quarter of 2023, that is, from April to June, it turned around. We once again saw a significant influx of new clients, especially from Norway and Denmark. Our existing customers still seek assistance in streamlining and integrating their logistics, so things are going well.

What's your view on the market situation for the remainder of 2023?

– I am optimistic despite the uncertainty. The large number of new customers we're gaining suggests that market concerns, at least partially, have declined. Sweden's GDP is expected to be slightly negative while Norway, Denmark, and Finland's are predicted to be stagnant or slightly positive. Our main market, the Nordics, is doing fairly well despite market concerns.

If you're wrong and the market climate turns tough, how will Ongoing be affected?

– Of course, we will be affected if things slow down, but many companies look to streamline and automate their operations during tougher times, especially their logistics. Ongoing WMS plays a vital role in this process and is essential both in good times and bad. We help our clients become faster, more agile, and more resilient in all situations! Even today, many WMS software solutions are locally installed, and the shift to cloud-based solutions becomes even more apparent during challenging times, which benefits us.

Ongoing's figures have looked good for a long time. Can it continue?

– Yes. Financially, Ongoing is very strong after 15 uninterrupted years of profitable growth. We are very long-term oriented, with no loans or external financiers demanding quick returns. With over 550 clients and more than 10,000 users, we have a solid foundation. We plan to continue building the company step by step, mainly in the Nordics, but increasingly on a global scale. We grow with our customers and software-developing partners. We have outstanding employees, and we will always prioritize our customers' interests.

How do different trends affect Ongoing?

– We see many trends that are affecting our business. Here is a list of the most prominent ones:

1. The overall trend, both in the Nordics and globally, is that digitalization in warehousing and logistics remains strong and will continue to be so for the foreseeable future.
2. As many know, we are particularly dominant in third-party logistics. This niche will continue to grow in the next 5 years in the Nordics and worldwide. We're clearly the market leader in the Nordics and we're growing internationally.
3. Another trend is that companies with their own warehouses or a "hybrid solution", which we refer to as "logistics-intensive companies", increasingly choose specialized software, i.e., a WMS, to manage their warehouse. Previously, they might have managed their warehouse using a module in their ERP system or some other more generic software.
4. We also see a clear trend where logistics-intensive companies, both small growing and large ones, find it a no-brainer to opt for cloud-based software that is quick to deploy with relatively little financial investment. Older, locally installed WMSs requiring extensive consultancy support are on the decline.
5. The trend that software should communicate seamlessly will continue. Customers should even be able to set up integrations themselves within minutes. Our clients expect Ongoing's WMS to communicate with all surrounding software, like ERP systems, webshops, shipping platforms, and various automation systems.
6. Two other trends positively affecting Ongoing are the long-term growth of e-commerce and the automation of warehouses. With the growth of e-commerce, warehouse workers now do the piece-picking that was previously done by consumers in stores. This means piece-picking becomes a larger part of warehouse work and a bigger portion of the value is added in the warehouse. Therefore, it becomes even more essential to streamline the picking processes with a combination of a powerful WMS and automation to keep costs in check.

How do you envision things a few years down the line? Where will you grow? 

– Even though we have clients in 30 countries, the Nordics are our primary focus for obvious reasons. This is where the majority of our clients are and also where we have a vast ecosystem of different software partners. Sweden and Norway are the largest, but Denmark and Finland are on the rise. Our internationalization outside the Nordics is largely driven by our clients and partners expanding globally. Many of our clients operate internationally and wish to use Ongoing WMS outside the Nordics. So, Ongoing WMS is now used worldwide. The Nordics, with its 27 million inhabitants and a well-developed business environment, is a great market for us. We share similar languages, cultures, and values. There's a sense of unity. The Nordics top the list (IMD World Digital Competitiveness Ranking) of the world's countries excelling in digitalizing various business operations. Denmark ranks first, followed by the USA and Sweden, and closely followed by Finland and Norway. Thus, we, our partners, and our clients are at the global forefront of digitalization.