SAP Retail Customer - Fugang Bakery

Chain Store Digital Transformation with SAP® Business One® on SAP HANA + Retail Solution

Fugang Bakery

Qingdao Fugang established in 1997, is the parent company of well-known bakery brands such as “Xiaolei,” “Lichi Baking,” and “CROISSANT.” With over 80 brand chain stores and advanced industrial parks, the company is a leader in the food production industry in Qingdao. The “Xiaolei” brand primarily focuses on Chinese and Western pastries, supplemented by noodles, snacks, meat products, and frozen foods, with nearly 600 varieties across seven major product lines.

Company

Qingdao Fugang Group

Location

China

Qingdao, Shandong

Website

www.qdxiaolei.com

Company Size

300+ Employees

Industry

Retail (bakery )

Product & Service

Breads & cakes

Solutions

SAP Business One on HANA

Reabam Cloud (Retail Solution)

Partner

MTC

In 2006, Fugang and France’s Lichi jointly established the “Lichi” brand, creating a combination of experiential consumption in-store and customer purchases, providing consumers with an experience and communication space for baking culture. In 2010, Fukuoka Group independently invested in the construction of the country’s first experiential baking industrial park, featuring production lines for large mooncakes, rice dumplings, toasts, tangyuan, and more.

Fugang adopted digital management systems to spur market agility, customer service, and employee empowerment through the digitalization of chain stores, business processes, and supply chains.

Before:

  • Lacked integration of various business functions resulted in data siloes.
  • Unable to obtain production costs for each brand.
  • Lack of data integration led to inefficiencies leading to poor customer experience and employee burnout.

After:

  • Developed a data-driven supply chain platform and transformed the company’s business to S2B2C (supply to business to customer) model, supported by multi-channel marketing strategies implemented across 4 brands and 150+ retail stores.
  • Enabled adoption of the amoeba management system that increased employee productivity and efficiency through data integration.
  • Gained granular visibility of product quality, sales, and profit margin data of each product.
  • Improved demand planning: Complete each sales forecast and order management cycle within 10 minutes, track and obtain inventory data within 30 minutes.
  • Reduced employees’ time spent on repetitive and mundane tasks to focus on higher-value work.
  • Increased operational efficiencies through intelligent order management and digitalization of membership processes.

Why SAP and MTC

  • SAP® Business One® is easy-to-deploy with robust features and integrates finance with business functions.
  • Ability to integrate SAP Business One with Merchants Operational Platform (Reabam Cloud) to manage online & offline operations
  • MTC’s reputation and deep experience working with companies in the food sector.

4X

Order processing efficiencies increased 4 times

80%

Monthly settlement time shortened 80%

>98%

Inventory accuracy improved up to 98%

“Food safety is paramount for us. By gaining visibility and transparency across all our business processes, we can now manage product traceability across our entire food supply chain.”
Xiaolei LIU
Chairman and General Manager, Qingdao Fugang Group