King Bakery Digitalises Supply Chain to Support Business Expansion
Background
Despite industry pressures and the growing northbound consumption trend, King Bakery, one of Hong Kong's leading egg tart specialists, has continued to expand its business.
In addition to its network of retail outlets, affiliated brands including Ryoyu Bakery Studio and cha chaan teng “2 Café”, the company has also grown its hotel supply business and opened new stores. As operations expanded and order volumes increased, King Bakery recognised the need to strengthen its supply chain capabilities to support sustainable growth and operational efficiency.
Traditionally, the company relied on manual processes such as paper-based inbound and outbound stock records, manual stocktakes, and legacy ordering systems. Warehouse staff decided which batch of raw materials to transfer to production line based on experience and manual records. These practices led to a data accuracy, production inefficiency, limited warehouse visibility and higher risk of waste — constraints that became increasingly difficult to manage as demand grew.
Thus, King Bakery decided to step up into digitalisation to address the above concerns.
Solution
The supply chain digitalisation journey was carried out in phases, beginning with the deployment of a Warehouse Management System (WMS).
GS1 Hong Kong reviewed the operations and redesigned key warehouse & inventory workflows, including inbound receiving, storage & inventory management, outbound fulfilment, stocktaking, reporting, etc. The smart professional consultancy team also supported vendor evaluation and selection, managed the implementation, and provided training to ensure a smooth transition.
Digitalising Supply Chain Management
The new solution transformed previously manual, paper-based processes into a real-time, digital operation.
Inbound receiving, storage and outbound fulfilment processes were digitalised, providing real-time visibility of inventory levels and product availability across warehouse operations. Previously, production staff selected raw material batches based on experience and manual records, increasing the risk of expiration and waste. By embedding FEFO (First-Expired, First-Out) principles into the Warehouse Management System (WMS), batch selection and inventory movement are now managed systematically in digital manner, providing real time visibility and ensuring older or earlier-expiring materials are used first. This improves inventory accuracy, strengthens traceability, reduces material waste, and supports food safety compliance.
In addition, the system automates reporting, providing management with timely inventory, sales and operational insights to support faster and more informed decision-making.
Digital Ordering & Stocktaking
The system also replaced their legacy ordering system. Shop and restaurant staff can now place orders directly through the system, check product availability in real time, and manage replenishment more efficiently, reducing manual coordination and improving order accuracy.
At the same time, stock take processes across warehouses, shops and restaurants are managed digitally, reducing the time and effort required for manual counting.
By establishing a digital foundation for warehouse and inventory management, King Bakery is better positioned to support business expansion while maintaining operational efficiency, consistency and food safety standards.
Benefits
- Improve Inventory Accuracy up above 96%: Real-time inventory tracking and automated stock control significantly improved inventory accuracy to over 96%, reducing discrepancies, waste and shrinkage while providing better visibility across warehouse operations.
- 30% Improvement in Operational Efficiency: By automating warehouse and store processes such as receiving, put-away, dispatch, ordering and stocktaking, the solution reduced manual effort and streamlined daily operations, resulting in a 30% increase in efficiency.
- 10% Cost Savings: Improved inventory control, reduced operational errors and more efficient processes helped lower supply chain operating costs.
- Improved Order Fulfilment and Accuracy: Streamlined picking and fulfilment processes, reducing errors and improving order accuracy, helping ensure the right products are delivered to the right locations at the right time.
- Enhanced Quality Control and Compliance: Maintain accurate records and enable traceability, such as FIFO and FEFO methods, which are crucial for food safety.
"Running a business is an ongoing process of refinement. As our business grow, we need digital foundations that can scale with us with greater efficiency. Through digitalising our supply chain, we have improved visibility, reduced manual work and strengthened inventory control, giving us the confidence to seize new opportunities while continuing to deliver quality products to our customers."
Mr. Jerry Chong, Managing Director, King Bakery Holdings Limited
“As the first and only bakery group in Hong Kong to receive the Hong Kong Q-Mark Quality Product Certification for our pastry and preserved egg butter tarts, quality has always been central to our brand. Digitalising our inventory, ordering and stocktaking processes has strengthened traceability and visibility across the supply chain, helping us protect that quality while enabling faster, more controlled product flow.”
King Bakery
Applied Standard or Solution/Service
About the Company
Founded in 1993, Kings Bakery outlets are located throughout Hong Kong. The "Q-Mark" egg tarts, "Pastry Tart"and "Preserved Egg Butter Tart", are the most popular products in Kings Bakery. Thanks to their creative style, King Bakery keeps making egg tarts in different flavours. Some special egg tarts such as the "Cold Tart"and the "Bat Tart" are beloved by customers.