Fuelling business expansion through Shift Trade integration
$10 million
Total credit limits
Shift has extended a total of $10 million in credit limits to Trax customers.
7.9x
Transaction volume growth
Over a nine-month period, the number of transactions processed through Shift Trade grew by 7.9x.
4.2x
Growth in Trade users
Over a nine-month period, the number of Trax customers using Shift Trade grew 4.2x.
The client
Trax, a leading FMCG wholesaler in Australia, supplies a network of fuel retailers and convenience stores. Its success with blue-chip customers set the foundation for expanding its business as the preferred supplier to an independent group of fuel retailers. This required leveraging its buying power and addressing specific operational challenges.
The challenge
Trax identified two key requirements to secure its new role as the preferred supplier to the independent fuel retail chain:
Trade terms implementation
- Cash flow impact: Trax needed to fund operations while waiting for accounts to settle.
- Credit risk and collections: Introducing trade terms meant managing credit risk and collections – a new capability outside its core expertise.
- Resource constraints: Maintaining focus on core business activities was critical while managing this complex shift.
Online ordering integration
- Trax’s existing manual ordering processes were unsustainable given the anticipated growth in volume from independent retailers.
- A robust, seamless online ordering system with integrated payment terms was essential.
The solution
Credit management and risk mitigation
- Shift Trade took over customer onboarding, credit assessments and collections.
- Trax maintained cash flow stability with next-business-day payment from Shift, while buyers benefited from 14-day trade terms.
Technology integration
- Shift Trade’s tech team developed, tested and deployed an integrated solution that enabled buyers to select 14-day trade terms as a payment option directly within Trax’s online ordering platform.
- This streamlined the ordering process, enabling Trax to handle increased order volumes efficiently.
The results
Trax's collaboration with Shift Trade yielded transformative results.
Preferred supplier appointment
- Trax secured its role as the preferred supplier to the independent fuel retail group.
Significant growth in buyer adoption
- The number of independent buyers using Shift Trade grew from 60 to 250 within nine months.
- Shift Trade now processes more than 400 transactions per month, with transaction values approaching $3 million monthly.
Increased revenue and flexibility
- More than 30% of Trax’s total transaction volume is now settled via Shift Trade.
- A significant percentage of buyers have used Shift Trade at their own expense to extend payment terms beyond the standard 14 days offered by Trax, with many opting for weekly instalments.
- Feedback indicates that this payment flexibility has driven higher order volumes across the network.
A final word
The partnership with Shift Trade has enabled Trax to address operational challenges while driving significant growth and solidifying its market position. With a scalable solution and strong buyer engagement, Trax is well-positioned for continued success in the evolving FMCG market.
Now that we can see the benefits for our clients, we are expanding our supply network and anticipate doubling our Shift Trade transactions over the coming 12 months".