Mention baking supplies in Singapore and most families would think of heading to one of the 18 Phoon Huat stores to stock their baking needs. Phoon Huat, the baking supplies and wholesale ingredients firm, has been around since 1947. Its B2B arm supplies to more than 4,000 hotels, restaurants and cafes in Singapore and forms the bulk of its business. What gave this wholesale bakery supplier the digital nudge?
The push for digital transformation
To improve productivity and grow its business, Phoon Huat decided to digitalize its operations in 2013. The company started planning for digitalization after the Government’s announcement that it would cut worker quotas. Covid-19 was the “big-stick” pushing the company forward in digital transformation. It created the impetus to be more manpower-lean.
In the past, it was not uncommon for employees at Phoon Huat to be taking phone orders. This was done between handling walk-in customers’ queries, processing their payments and tending to deliveries to their stores. This labour-intensive method of handling customers and managing stock led to errors made on the employees’ part and frustrated customers. Clearly, taking phone orders took up a lot of the employees’ time as they had to call different outlets to see if there was stock available, not just for one customer, but the many they faced throughout their shift.
The success that digital transformation brought
The company now boasts an online store that provides delivery to home bakers and other customers. With the new integrated commerce and POS system in place, inventory information was available in real-time to Phoon Huat’s staff and customers got what they wanted quickly.
The digital framework also meant that staff knowledge could be documented through a formal system. This facilities knowledge sharing is used for management meetings, employee appraisals and operating procedures, as when a new outlet is set up. As processes are recorded and visible, implementation is more straightforward due to the easily accessed knowledge.
Apart from easing workflow and boosting employee morale, Phoon Huat could also set its sights on overseas expansion as it spearheads this segment of the wholesale market.
Read more here: https://www.enterprisesg.gov.sg/inspiring-stories/business-excellence/going-digital-for-growth
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