Bake in 2021: Digital transformation in bakery industry.

Nationwide lockdown due to COVID-19 pandemic in 2020 impacted the businesses all around the world and bakeries are one type of businesses that got a raise in demand.

Bread is the dominant category in baked products and is expected to be the dominant category in the future.

As per the report by Mordor Intelligence about GCC Bakery ingredients marketin in 2021-2026  Saudi Arabians consume more bread per person than any other country. Bread is eaten with the main course, and can be dipped in gravy, or used to hold meat and vegetables. The most popular bread in the UAE is the tandoori bread, which is a single-layered flatbread, baked in a shell oven and made of medium-hard wheat. Furthermore, Bread is the dominant category in baked products and is expected to be the dominant category in the future. 

Which processes can be digitized in the bakery, and what problems the digital transformation solves? 

The following problems become more common among bakeries:

– printed menu that is not recommended to use due to COVID-19;
– high demand that reflects in a high load of operations;
– manual processes: order taking, recipe management, inventory, distribution, reports;
– eCommerce channels either not enabled or orders are received through third-party platforms: Social media, Whatsapp, aggregators;
– no customer base analytics;
– no or low activity in digital marketing;

This is how the above-mentioned problems are solved by bakeries through digital transformation :

1. Printed menu: now more often can be seen as replaced by digital e-menu or the whole eCommerce website which can be reached out through scanning a QR code.

2. Tension in operations – reduced by implementing Kitech Display System (KDS) connected to POS and orders are distributed according to the assigned department. 

Through analytics with a Machine Learning algorithm, you can predict the demand and automate the planning of purchases and resources. To explore more about how analytics can impact the business you may read in this article: LINK 

3. Manual processes:
order taking process is now digitized through QR code menu, which may allow dine in customers place the order, pay online adding tips and split the bill. 
The tool can be linked with POS and order may goo straight to the kitchen and POS.

The recipe management system tracks the inventory of raw materials and produced goods, so you can spend your raw materials wisely and optimize the cost of your recipes, by tracking the total cost of your production. 
On top of that, you can automate demand planning and purchase orders to suppliers.

Reports can be generated automatically at the end of the shift, day, week, month etc. and capture various metrics:
top selling products, high consumption, low denmand etc. 

4. Customer base analytics will help understand who is your customer, who else you can target and how.

5. By setting up the right strategy in Google, Instagram, Facebook, TikTok, Snapchat, and others you can reach out faster to your audience.
You may want to check these quick tips about how to boost your sales through Instagram: link

According to report made by Technavio, the global Bread market will increased by 5% on average.

This growth in demand will require increase of capacities and optimize operations across the departments.
We will see more technologies applied in bakeries, transforming the old traditional way of operations into new processes complemented by digital solutions. 

We will see more automation: more robotic machines, more digitalized existing processes and the use of hardware as a way to go paperless, support sustainability. 

I hope this gives you insight into your digital transformation. In case you need some more insights - connect with me on LinkedIn.
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Author: 
Yuliia Shyn
Sales Team Mentor at ITFAQ Global 
https://www.linkedin.com/in/yshyn/