Zupply and Limepay partnership will be a gamechanger for many businesses in the food industry.
The Food and Beverage industry is the heart and soul of Australia, from the bustling street-side cafes to farms and paddocks throughout regional communities. In fact, Food and Beverage is the largest manufacturing industry with 32% of total manufacturing turnover across the country.1
In recent years, we all felt the fallout when a sector so critical to our everyday lives came crashing down as it did during the pandemic. Grocery stores with only a scattering of items on the shelves and restaurants shuttered for months affected us all.
But for food wholesalers, the loss of business overnight elevated an underlying issue within the food sector – cashflow constraints.
The industry is rife with unpredictability and operates with high levels of risk exposure. They face constant challenges, from weather affecting food supply and labour shortages to changing customer demands. But the importance of the industry is so essential to Australian life and economy that it's time to look at technology for solutions.
Zupply is a software solution fresh on the scene to digitise food wholesale processes from ordering and inventory to payments and cashflow.
"The industry functions in constant flux leaving little time for updating systems and modernising”, says James Kelly, CEO of Zupply
In the early 2000s, James worked for a food wholesaler tasked with entering orders one line item at a time. He knew there had to be a better way. When Xero revolutionised small business invoicing across Australia, James set out to build a digital solution for the food industry.
Cashflow constraints for food wholesalers
Cashflow is a big problem for food suppliers because of how the industry conducts business. The relationship between buyers and suppliers is unique.
"Traditionally buyers dictate when they pay their suppliers. It's also common for buyers to run their credit up as much as possible," James adds. "And sometimes suppliers physically go to the buyer's venue to collect payments."
This business practice means an extraordinary amount of time and effort for the accounts receivable team.
James knew there was a better way to help wholesalers survive the challenges of late payments, unpredictable supply and perishable products. He started Zupply to solve suppliers' challenges and ensure they are sustainable and primed for growth in the digital age.
"Embracing technology gives businesses the best chance to be sustainable and profitable."
While Zupply offers food wholesalers, retailers and restaurants a comprehensive solution to help them order and control inventory, digital payments are a big part of Zupply's product offering.
With so many B2C payment gateways on offer, Zupply realised they needed a customised solution that was built for B2B.
Zupply + Limepay
Zupply is a software solution platform helping food suppliers streamline their operations. But since they aren't invoicing the end customers directly, other payment platforms weren't willing or flexible enough to handle all the use case scenarios.
To add a payment solution, Zupply needed an experienced payment provider willing to work with them to create a platform that fits their business model and supports their sub merchants.
Sub merchants are the most important users on the Zupply platform. They represent the suppliers and distributors from produce to packaging. They are 24-7 businesses starting to understand the benefits of automation and digitisation through industry-specific software. And when the result is reduced labour and operating costs, they're ready to listen.
Zupply and Limepay's software development teams worked together to create the infrastructure with a simple user interface designed specifically for busy wholesalers.
"At Zupply, we want to empower our users with digital payment solutions to help minimise risk exposure and increase efficiencies. Working with Limepay has allowed us to create a solution that is easy for both sub merchants and buyers."
"The shut downs due to Covid really caught suppliers off guard. They had millions of dollars outstanding with clients who were no longer trading and had no way of paying their overdue accounts."
The bright side is that suppliers now understand that their cashflow needs to be managed better. Of the industries with the highest payment arrears in Australia, food and beverage is second.2
To improve cashflow, suppliers are ready to take advantage of new opportunities and redesign their payment methods by adopting modern digital payment options.
Suppliers who have adopted Zupply backed by Limepay's STACK and Virtual Terminal solutions, love that they can control their disbursements. They have access to the funds they need when they need them.
The Zupply and Limepay solution combo will be a gamechanger for many businesses in the food industry.
James wants businesses to "embrace digital payments sooner rather than later to give their business the best chance to be sustainable and profitable" for years to come.
To learn more about custom payment solutions for your industry, contact our sales team today.
1 Octet: Analysis: Food and Beverage Industry Challenges in 2020
2 Retail World Magazine: Food and beverage among industries most at risk of default