In addition, it’s not uncommon for suppliers using SBT to be paid as their products are sold, Landgren says. For a perishable product like flowers, this could mean suppliers are paid within days. In contrast, some retailers are delaying other supplier payments out to several months.
This detailed and timely sales information is particularly helpful for products such as flowers, which have a life span of seven to 14 days, Landgren says. It helps Fantasy Farms determine how many of each plant and color to grow, and then which bouquet mixes are most likely to sell in different locations. Fantasy Farms can use this information to minimize waste and boost sales, benefiting both itself and its retail partners.
When Sabogal started Fantasy Farms about 25 years ago, he employed a more traditional business model and served both wholesalers and traditional grocery stores. About a decade ago, Sabogal wanted to innovate and add more value for his customers, while also putting some distance between Fantasy Farms and its competitors. He met representatives from Fintech at a trade show. When they brought up the concept of scan-based trading, Sabogal was skeptical. “I looked at them and thought, ‘Why would we ever do such a thing?’” However, Sabogal and his team came to realize that SBT could help them gain access to more clients and develop a competitive edge. “Through their partnership, we started servicing some convenience stores and then the business grew,” Sabogal says. The primary benefit to retailers who participate in an SBT arrangement is obvious: they free up capital because they own the products they’re selling for, in some cases, a few seconds. Inventory has traditionally been one of the largest expenses for many retailers, says Mark Landgren, Fintech’s senior vice president and general manager, SBT. GETTING INTO THE DETAILS What do suppliers gain? Access to point- of-sale data, in real or near real time. The data often is more detailed than what they otherwise might obtain, including sales per store, per day, and per stockkeeping unit (SKU). This information allows a company that sells, for instance, greeting cards— one of the first products SBT was used for, Landgren says—to quickly see which designs are hot sellers and which are moving more slowly, by store. It then can adjust the amount of each design it delivers to each location. Previously, suppliers might have obtained similar information one or two months after a sale was completed, says Tad Phelps, chief executive officer of Fintech. At that point, it’s difficult to use the data to adjust operations and inventory levels in ways that can boost sales and cut waste. With SBT, suppliers get “headlights into the data in a much more timely manner,” Phelps says.
HOW IT WORKS The Fintech SBT platform is mapped to each retailer’s point-of-sale (POS) Tech Partnership Sprouts Growth THE CHALLENGE Identify a strategy that adds value to Fantasy Farm’s retail customers and provides a competitive edge. THE SOLUTION Partner with Fintech to leverage its scan-based-trading technology, and with FedEx on a direct-store-delivery arrangement. RESULTS Fantasy Farms’ customer base has grown to more than 8,000 locations regularly, and it can top 30,000 locations during holiday seasons. NEXT STEPS Fantasy Farms has begun working with an AI solution to forecast and plan for demand with even greater accuracy.
Fantasy Farms uses detailed, real-time SBT data to make informed decisions about which flower varieties and colors to grow, and which bouquet mixes sell best in specific locations. This helps reduce waste and increase sales.
78 Inbound Logistics • June 2025
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