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The acquisition, facilitated by M33 Growth, is part of BFC’s strategy to build the most comprehensive operations platform for food distributors in the industry.
BOSTON, MA (July 1, 2024) – BFC Software, Inc. the leading provider of warehouse management software for food distribution, is pleased to announce its recent acquisition of Herlitz Inventory Management, a leading provider of demand forecasting and replenishment software. The two companies will combine to form the most comprehensive, purpose-built operations platform for food distributors in North America and beyond.
Will Collins, Chief Executive Officer for BFC Software, said, “We are thrilled to join forces with Carl and the Herlitz Inventory Management team. The Herlitz name has been synonymous with powerful demand forecasting, optimized replenishment, promotional buying and forward buying for decades. Our two companies have enjoyed mutual customers, a long-standing relationship, and our values and commitment to exceptional service made this a perfect fit. We are both purpose-built for food distribution and know our products can work better together to help food distributors achieve peak profitability and efficiency.”
As part of BFC’s strategy for growth, Herlitz was identified as a natural target due to its deep experience and knowledge of the food distribution industry. It has been a pioneer in delivering daily demand forecasting which works particularly well in the perishables space, and allows food distributors to respond more quickly to change in customer demand and shifts in the supply chain.
By better forecasting demand, food distribution customers see an increase in service levels along with a reduction in on-hand inventory. Better coordination between the buying team and warehouse can free up critical space as well. Less inventory on hand opens up shelves to carry additional SKUs or serve more customers. This provides critical operating leverage for food distributors and drives significant margin improvement.
“Connecting the buying process with the warehouse has always been at the heart of our software,” said Carl Herlitz, President and CEO of Herlitz Inventory Management. “We have deep respect for the BFC Software team and their 30-year track record in warehouse operations. We are excited to partner together, and we’re confident our customers will benefit from even more ways to optimize their operations.”
Bringing together bootstrapped technology companies like BFC and Herlitz represent terrific opportunities to invest in specialized, industry driven companies and focus on rapid growth through acquisitions, product development, and team buildouts.
“Bootstrapped vertical-market leaders like BFC can rapidly accelerate their growth by deepening both their product offering and their customer base through acquisitions like Herlitz,” said Brian Shortsleeve, co-founder and managing director of M33 Growth. “We enjoy working closely with our CEOs and their teams to identify, negotiate and close strategic acquisitions and we are thrilled to support BFC in their continued growth.”
Looking ahead, BFC is on a path to nearly double its headcount and revenue this year and will continue to build out its integrated offering for food distributors. One particular area of focus has been on pending FSMA and related food traceability regulation coming January 2026. The law, as it is currently written, would require broadline distributors to scan products individually as they work their way through the warehouse which would be fundamentally cost prohibitive for most distributors.
In conjunction with leading industry partners, BFC has taken a leadership role in submitting a probability-based approach to the FDA which would satisfy compliance without disrupting day-to-day operations. Approval of this approach would result in massive savings for the industry.
BFC is a leading provider of Warehouse Management & Logistics software purpose-built for food distribution. BFC works with grocery, food service, convenient store, and produce distributors to improve their bottom line through improved warehouse operations. Visit https://www.bfcsoftware.com for more information.
Founded in 2009, Herlitz Inventory Management (Herlitz IM) provides tightly integrated Demand Forecasting, Order Optimization, Promotion, and Forward Buying. Herlitz’s innovative designs are an industry standard; used by thousands of companies to optimize inventory.
With end-to-end visibility and new insights, HIMPACT® is uniquely suited to today’s marketplace, delivering optimized buying quantities, highly satisfied customers, and tighter inventory management. Visit https://herlitzim.com/ for more information.
M33 Growth is a venture and growth-stage investment firm that partners with founders and CEOs who have successfully bootstrapped their companies to strong growth and are positioned to rapidly scale their companies and breakthrough as market leaders. With deep experience fueling sales and marketing engines, driving acquisitions, and building value through new product development, M33 Growth seeks to propel portfolio companies to succeed in their markets. Founded by veterans of renowned investment firms with considerable operational experience, the Boston-based firm seeks to invest in companies in the software, healthcare, and services sectors throughout North America. Learn more at m33growth.com.
Media Contact:
Sean Hathaway
Tel: 857-208-5858
