Quartix Smoothes BKF’s Cash Flow Curve With 1 Click During Peak Seasons

Sam Wieder, COO of BKF (Birdsboro Kosher Farms), needed to drastically increase his production overseas in order to make sure that come peak season when purchases ramp up he would have ample supplies. With Quartix, Birdsboro Kosher Farms was able to fund timely individual vendor payments to guarantee supply continuity without any commitments or fixed costs.

The Client (‘buyer’): a poultry and meat processing &importing company

Birdsboro Kosher Farms (BKF) is a poultry and meat processing company located in Birdsboro PA, providing big-box food retailers with poultry and meat products adhering to the highest standards of Kashrus and sanitation. BKF manufactures 100% antibiotic-free, exclusively vegetarian-fed Kosher Chicken, raised in stress-free living conditions under close supervision of veterinarians and food manufacturing experts it also manufactures 100% hormone and steroid free Beef in South America that is imported and sold in The United states

The Challenge: peak season applies pressure on cash flow

BKF produces and sells its poultry and meat products throughout the year, managing its cash conversion cycle to optimize its cash flow and working capital position. Due to the seasonal nature of the business, customer demand for BKF’s products rises sharply during certain times of the year. Due to the time lag between when a chicken is raised or beef is manufactured until it reaches the stage at where it can be sold Building up inventory is crucial to guarantee timely delivery of products to customers. However, while customer revenue is many months away, vendor payments had to be made at the time of production in order for the supply to arrive on time, creating cash flow gaps.              

BKF considered approaching traditional lenders to obtain a line of credit. BFK would be forced to incur unnecessary costs given the company needs funding for only a few weeks out of the year. It needed a flexible facility that’s accessible, integrates seamlessly into their system,and needs to be a ‘pay-per-use’ model.

Thank you!
Download e-book
Oops! Something went wrong while submitting the form.
"

We rely on having the full line of products always available without disruption in all seasons of the year to drive sales and growth. To mitigate the inherent seasonality of our business we needed flexibility and availability of funding. Quartix delivered both

Sam Wieder

COO, Birdsboro Kosher Farms

The Solution: on-demand vendor payments funding 

Quartix’s solution catered to these requirements. It offered a flexible, on-demand credit facility with capacity and rates that complied with BKF’s needs, delivered via a simple web application that allows BKF to draw the required funds in order to be able to build the required inventory ahead of the season  - once BKF was able to collect payments from customers it would decrease the line provided by Quartix without incurring any additional costs  

The entire process relied on real-time data extracted from specialized food industry ERP system, requiring no IT changes from BKF. The entire process is transparent to its vendors, with Quartix funding BKF and BKF then makes payments to its vendors - avoiding the need to add Quartix as a middleman in the payment process.

Thank you!
Download e-book
Oops! Something went wrong while submitting the form.
"

We partnered with Quartix because it allowed us to control our financing spend. Its on-demand digital model allowed us to use it only during peak season, get the funds quickly when needed and avoid unnecessary interest expenses. Drawing funds requires a few clicks and we get the funds within 1-2 days at most

Ahron Frenkel

Controller, Birdsboro Kosher Farms

The Impact: A smooth cash-flow curve

 Shortly after BKF partnered with Quartix, the managerial effort it had to allocate to cash flow management, as well as any supply disruption, allowing BKF to focus on what it does best – supply high quality poultry and meat to its big-box customers.

 As peak season approaches and inventory needs to be built, funding timely vendor payments became easy - selecting vendor payments to be funded, submitting funding requests and, getting the funds the next day. During the rest of the year, when BKF needs no funding, BKF simply does not submit payment funding, avoiding unnecessary expenses.

Thank you!
Download e-book
Oops! Something went wrong while submitting the form.
"

Going live was easy and Quartix works seamlessly with our specialized food industry ERP. We went live with Quartix within a week

Sam Wieder

COO, Birdsboro Kosher Farms

More posts