Golden Taste Alleviates Key Supply Chain Bottleneck via Supply Chain Finance
Jay Schwartz is the COO of Golden Taste, a NY-based food manufacturer. A key priority for Jay is making sure that Golden Taste foods are delivered from the farm to table, efficiently. When economic conditions impacted supply chain and hindered delivery, Jay turned to Quartix’s Supply Chain Finance to make sure supply keeps flowing.
The Client (‘buyer’): a manufacturer of refrigerated food products
Founded in 1996, Golden Taste manufactures and processes ready-made salads, dips, spreads, and a selection of frozen fruits and vegetables. Products are distributed to retailers across the country including to retailers such as Costco, Stop & Shop, food servicers, clubs and private label partnerships.
The Challenge: supply continuity amidst tight credit market and rising shipping costs
The impact of the Covid-19 pandemic has inflicted liquidity shortages on several of Golden Taste’s vendors. Shipping costs have doubled, tripled and even quadrupled. Small / mid-sized vendors are hurt by the banks reluctancy to lend. And on top of that – the suppliers of Golden Taste suppliers experienced peak demand and started demanding faster and faster payments. The cash flow pressure hindered the continuous operation of Golden Taste’s vendors and jeopardized Golden Taste’s ability to get the supply it needs on time
The Solution: boosting vendor liquidity via Supply Chain Finance
Quartix is there to pay its vendors whenever they want through Quartix’s Supply Chain Finance platform. Participating Golden Taste vendors can now submit early payment requests for invoices already approved by Golden Taste and have them paid immediately by Quartix for a small fee.It’s a win-win for Golden Taste and its vendors that benefit from Quartix. For Golden Taste, going live took 1 day and required no ERP integration. The day-to-day process is completely transparent, Golden Taste never pays early and incurs no fees or commitments.Vendors now have a new flexible, digital early payment channel. With a quick 2-minute onboarding process and no credit check, vendors can now accelerate approved Golden Taste receivables to increase liquidity whenever needed without any long-term commitment.