Insight

In recent years, data, eCommerce and automation have played an increasingly larger role in the global fastener distribution market. Assistant Editor Becca England visited Apex Stainless Fasteners to find out how the UK-based company has been actively investing in all of these areas, to continue to offer its customers the highest level of service, while setting the company up for future success.

With the future in mind, Apex has implemented numerous changes – resulting in more investment in the last year than in the previous two decades of the company’s history. The first of these changes took place in 2023 with the company opting to change its ERP system to gain more efficiency in its operations. This change has enabled the business to operate more efficiently by using an eWMS system and several EDI integrations.  

With a focus on continuing to improve its operational effectiveness, a walkway system has also been implemented in Apex’s warehouse to enable multiple orders to be picked simultaneously, making it easier for the company to handle peaks in demand. 

Commenting on the role of automation in the fastener distribution market, David Vahter, managing director of Apex Stainless Fasteners Ltd, said: “To me the UK market has traditionally been symbolised with throwing one more pair of hands on it. However, having spent the majority of my working life in Sweden, Denmark and Norway you can see the difference where countries with higher wages for labour are in their automation journey. That is why at Apex we have automated parts of our operation, which has been a contributing factor to catching up with demand, as well as increasing our output during 2024.”  

He continues: “With automation being key for the future, UK companies will need to balance the other variables influencing the market such as inflation and higher interest rates, in order for automation to begin to play a much bigger role in more traditional industries.”

Understanding CBAM

Arguably the biggest topic for Europe at the moment is CBAM (Carbon Border Adjustment Mechanism), a regulation which is set to hit UK businesses hard as it impacts both the import and export of goods. In order to aid Apex with the added administration and legislation, the company has hired a sustainability and compliance manager to try and help bridge the gap between EU legislation and Far East manufacturers.

David remarks: “CBAM is definitely a pain due to the level of bureaucracy involved. In essence, we are in favour of CBAM but it is not well executed from the EU. We are applying a level of unnecessary bureaucracy and administration into our supply chain who do not understand it and this leaves distributors in the middle trying to translate. BREXIT is also a complicating factor in all of this and is a double whammy for many UK businesses that are both importing and exporting goods. However ultimately, CBAM is here to stay and there is no way around it.”  

Investing for the future

Further investment from the company includes a new 67,000 square foot premises in Birmingham, larger than any other unit currently owned by the company, which will be fully operational by the end of the year. The new warehouse will have a packing and conveyor belting system, with different racking and shelving solutions installed, dependant on the type of goods that are being picked. Offices are also currently being fitted, as well as a canteen and a quality lab. 

With the aim of further improving its services, Apex has also made an active investment in the development of a new eCommerce website for the business, to future-proof the company in terms of its readiness to adopt more digital solutions.

David continues: “We are and have been seeing a new trend of customers wanting to interact digitally instead of the traditional method of picking up the phone. They want an eCommerce option together with a quick delivery, a competitive price, a good service and a wide range. Pre-Covid we didn’t see this customer behaviour, however we need to adapt to meet customers’ needs, which is why we are investing in eCommerce.”  

Additionally, Apex has hired more staff, with the company employing a new purchasing manager, an eCommerce marketing manager and an eCommerce executive. The company also plans to introduce a new brand identity, more suitable for use in digital touchpoints, and designed to better represent a more forward-thinking and innovative Apex Stainless Fasteners fit for the future.