Description
Group: 11
Aliyah altuwalah 1416
Read Alhamed 1701
Abdullah Salim 1256
Sehmi Alshahrani 1334
Rana Aljasser 1732
Date:
1. Introduction
This report presents a comprehensive technology plan for AlHatab Bakery, one of the leading
bakery chains in Saudi Arabia, known for its exceptional quality in fresh bread, pastries, and
gourmet baked goods. With a long-established reputation for producing high-quality products,
AlHatab Bakery has cultivated a loyal customer base over the years. However, despite this
success, the bakery is facing several operational and strategic challenges that have begun to
hinder its growth and profitability. These challenges include inventory mismanagement, where
manual tracking methods lead to stock discrepancies, wastage, and inefficiencies in the supply
chain. Additionally, the bakery’s outdated accounting systems rely on paper-based financial
tracking, resulting in human errors, delayed reporting, and challenges in maintaining compliance
with VAT regulations.
Furthermore, AlHatab Bakery’s digital presence is limited, with its current website serving
primarily as an informational platform rather than a fully functional e-commerce store. This
restricts the bakery’s ability to capture the growing trend of online shopping and digital
transactions, thereby limiting its sales potential. The absence of customer relationship
management (CRM) tools also presents a significant barrier, as the bakery is unable to track
customer preferences, purchase history, or engage in personalized marketing. This lack of insight
makes it difficult to build long-term customer loyalty and hampers effective promotion and
retention strategies. Moreover, without automated demand forecasting or order processing
systems, it becomes increasingly difficult to optimize production levels and ensure that supply
aligns with consumer demand, leading to missed opportunities for both cost reduction and
customer satisfaction.
In light of these challenges, the goal of this technology plan is to help AlHatab Bakery embrace
digital transformation by implementing modern technological solutions aimed at improving
operational efficiency, enhancing customer experience, and expanding market reach. The
proposed digital solutions—automated inventory management, cloud-based accounting systems,
CRM tools, and an e-commerce platform—will modernize the bakery’s internal processes,
reduce manual workloads, and facilitate data-driven decision-making. Through these
improvements, AlHatab Bakery will be better positioned to streamline operations, optimize
resource management, and offer a seamless experience to its customers.
The implementation of these solutions will follow a carefully designed phased approach,
allowing the bakery to gradually transition to new technologies while minimizing disruption to
its ongoing operations. This strategic roadmap ensures that AlHatab Bakery will not only
improve its internal processes but also be able to enhance its brand’s digital footprint and
competitiveness in a rapidly changing market. By leveraging the power of automation, data
insights, and digital platforms, AlHatab Bakery will be able to reduce costs, increase sales, and
provide a higher level of service to its customers, thus positioning itself for sustained growth and
success in the ever-evolving bakery industry.
.
2. Business Strategy
Company Overview and Value Proposition
AlHatab Bakery is a well-established brand in Saudi Arabia, specializing in traditional and
innovative baked goods. The bakery takes pride in using premium ingredients and traditional
recipes to deliver high-quality products to its customers. With a strong foothold in the local
market, the company continues to explore ways to expand its customer base and improve
operational efficiency through technological advancements.
AlHatab Bakery’s core value proposition is centered around offering fresh, high-quality, and
diverse bakery products that cater to various customer segments, including health-conscious
consumers, families, and professionals. The bakery differentiates itself by focusing on customer
satisfaction, product freshness, and convenience.
AlHatab Bakery is a well-established and trusted brand in Saudi Arabia, known for its wide
range of traditional and innovative baked goods. With a rich history in the local food
industry, the bakery has built a reputation for exceptional quality, authentic flavors, and a
commitment to excellence. By combining traditional baking techniques with modern
innovations, AlHatab Bakery continues to provide products that appeal to both classic and
contemporary tastes.
The bakery takes great pride in using premium ingredients, natural flavors, and fresh
produce to ensure that every product meets the highest standards. Its commitment to
craftsmanship is evident in its meticulous preparation methods, where bakers follow timehonored recipes while incorporating new techniques to enhance taste and texture. AlHatab
Bakery’s offerings include a diverse selection of bread, pastries, cakes, and specialty
baked goods, catering to the evolving preferences of consumers.
With a strong foothold in the local market, the bakery has established a loyal customer base that
appreciates its quality, reliability, and unique product offerings. It has successfully expanded its
presence across multiple locations, ensuring accessibility for customers in different regions.
However, as the food industry evolves, AlHatab Bakery recognizes the importance of digital
transformation, process optimization, and enhanced customer engagement to maintain its
competitive edge.
Core Value Proposition
AlHatab Bakery’s core value proposition revolves around offering fresh, high-quality, and
diverse bakery products that cater to various consumer segments, each with different preferences
and dietary needs. The bakery differentiates itself in the market through several key factors:
1. Uncompromising Quality: Every product is made using carefully selected, high-quality
ingredients, ensuring consistent taste and freshness. The bakery emphasizes natural ingredients,
minimal preservatives, and handcrafted baking methods to maintain its artisanal appeal.
2. Innovation & Product Diversity: AlHatab Bakery continuously develops new recipes and
introduces innovative products to meet changing consumer demands. This includes healthconscious options such as gluten-free, whole wheat, and protein-enriched baked goods to cater to
fitness enthusiasts and individuals with dietary restrictions.
3. Customer-Centric Approach: The bakery prioritizes customer satisfaction by delivering
consistent quality, excellent service, and personalized experiences. It actively listens to customer
feedback and adapts its product offerings based on emerging market trends.
4. Convenience & Accessibility: AlHatab Bakery ensures that its products are easily accessible
through multiple retail locations, supermarkets, and an upcoming digital ordering system. The
company aims to expand its online presence to make purchasing its products seamless and
hassle-free for customers.
5. Cultural Heritage & Authenticity: With a strong commitment to preserving traditional baking
methods, AlHatab Bakery offers authentic flavors and classic recipes that resonate with both
local and expatriate communities in Saudi Arabia. This balance between heritage and innovation
makes it a preferred choice for a broad audience.
Market Position & Expansion Goals
AlHatab Bakery aims to strengthen its position in the Saudi Arabian market while expanding its
reach through technological advancements and strategic partnerships. The bakery is focused on:
• Enhancing Operational Efficiency: By implementing automated inventory systems, cloudbased accounting solutions, and supply chain optimizations, AlHatab seeks to reduce waste,
control costs, and improve production timelines.
• Building a Strong Digital Presence: Recognizing the shift towards online shopping and digital
convenience, the bakery plans to launch a full-fledged e-commerce platform, integrate mobilefriendly ordering solutions, and invest in social media marketing to attract a tech-savvy customer
base.
• Expanding Product Offerings: To meet the growing demand for functional foods, AlHatab
Bakery is exploring nutrient-rich baked goods, keto-friendly options, and fortified bread with
added vitamins and minerals.
• Strengthening Brand Loyalty: Through personalized promotions, loyalty programs, and direct
customer engagement, AlHatab aims to increase retention rates and enhance customer
relationships.
Current State of Business
Despite its strong market presence and brand recognition, AlHatab Bakery faces several
operational inefficiencies that limit its ability to scale, improve profitability, and enhance
customer satisfaction. The bakery’s traditional business processes, which heavily rely on manual
operations and outdated systems, create bottlenecks that affect productivity and decision-making.
One of the primary challenges is the manual inventory tracking system, which lacks real-time
monitoring, automated stock updates, and predictive analytics. Without a centralized inventory
management system, the bakery struggles with overstocking, stock shortages, and high levels of
product wastage, leading to unnecessary costs. Additionally, the lack of an integrated inventory
solution across multiple branches results in miscommunication between production and
distribution teams, making it difficult to align supply with customer demand efficiently.
Financial operations also suffer from inefficiencies due to paper-based accounting processes. The
bakery relies on manual bookkeeping and spreadsheets to track sales, expenses, invoices, and tax
calculations, which are prone to human error, time-consuming, and difficult to scale.
Furthermore, VAT compliance and financial reporting require significant effort, slowing down
financial decision-making and increasing the risk of errors in tax filings and auditing issues.
Customer engagement remains another critical weakness in AlHatab Bakery’s current business
structure. The bakery does not have a centralized CRM system to track customer preferences,
purchase history, or feedback, limiting its ability to implement targeted promotions, loyalty
programs, or personalized marketing campaigns. The lack of data-driven insights into customer
behavior makes it difficult to anticipate trends, optimize product offerings, or enhance customer
service.
From a digital standpoint, AlHatab Bakery has a minimal online presence. While it maintains a
basic website, the platform serves only as an informational tool, lacking e-commerce
functionality, digital payment gateways, and an integrated order management system. This
restricts online sales growth, making it difficult to cater to customers who prefer convenience,
digital ordering, and doorstep delivery. As competitors in the bakery and grocery industry—such
as Almarai, Panda, and Al Othaim—expand their online sales channels, AlHatab risks losing
market share to more digitally advanced brands.
Challenges Analysis
Challenge
Impact
Proposed Solution
Implement an automated inventory system
Manual inventory Leads to overstocking, wastage,
with real-time stock updates and demand
tracking
and supply chain inefficiencies.
forecasting.
Outdated
VAT compliance and financial Adopt a cloud-based accounting system for
accounting
reporting are time-consuming
automated invoicing, tax calculations, and
processes
and inefficient.
financial reporting.
No CRM system to track
Deploy a CRM platform with loyalty
Limited customer
customer behavior or offer
programs, targeted promotions, and
engagement
personalized marketing.
customer behavior tracking.
The website lacks e-commerce Upgrade the website with e-commerce
Weak digital
functionality, limiting online
capabilities, digital payments, and an online
presence
sales growth.
ordering system.
Challenge
Competitive
pressure
Impact
Large supermarket chains and
established brands threaten
market share.
Proposed Solution
Strengthen brand positioning through
digital marketing, social media
engagement, and competitive pricing
strategies.
1. Manual Inventory Tracking
AlHatab Bakery currently tracks inventory manually, using paper-based logs and spreadsheets
across multiple branches. This outdated approach results in inaccurate stock levels, supply chain
inefficiencies, and product wastage. Without an automated system, it is difficult to forecast
demand, optimize stock levels, or prevent financial losses caused by expired or unsold products.
A lack of real-time visibility into inventory also means that different locations may run out of
popular products or overproduce slow-moving items, leading to inconsistent customer
experiences. Additionally, there is no integration with suppliers, making it difficult to manage
bulk orders efficiently or ensure timely restocking of ingredients.
2. Outdated Accounting Processes
AlHatab Bakery still relies on paper invoices, spreadsheets, and manual financial tracking to
manage its operations. This approach creates bottlenecks in financial reporting, payroll
management, and VAT compliance. Manual bookkeeping increases the risk of human error,
making it difficult to accurately track expenses, generate financial reports, and manage taxes
efficiently.The absence of a cloud-based financial system also makes multi-branch accounting
complex, as financial data is not consolidated or accessible in real time. This results in delayed
financial decisions and difficulties in identifying cost-saving opportunities. As Saudi Arabia
continues to implement stricter VAT regulations and digital financial compliance requirements,
AlHatab Bakery risks facing legal and financial penalties due to inefficient tax reporting.
3. Limited Customer Engagement & CRM Gaps
The bakery does not use a CRM system, which means it lacks customer purchase history,
preferences, and behavioral data. This makes it difficult to implement personalized marketing
campaigns, loyalty programs, or promotional offers based on customer demand.Without an
effective customer engagement strategy, AlHatab Bakery misses opportunities to increase repeat
purchases and build long-term brand loyalty. Competitors in the food retail industry are already
leveraging CRM tools to create personalized discounts, send automated promotional emails, and
enhance customer retention. Without a modern CRM system, AlHatab cannot effectively
compete in customer relationship management and digital marketing.
4. Weak Digital Presence & Lack of E-commerce Integration
AlHatab Bakery’s current website serves only as an informational platform with no e-commerce
functionality, online ordering, or delivery integration. In an era where consumers increasingly
prefer online shopping, this lack of digital accessibility limits AlHatab’s ability to generate
additional revenue through online sales.
Customers who prefer ordering baked goods for home delivery or pick-up cannot do so
efficiently, pushing them toward competitors with stronger e-commerce solutions. Additionally,
without SEO optimization, social media advertising, and online customer reviews, AlHatab’s
brand visibility is significantly lower than its competitors in the bakery and grocery retail
industry.
By integrating an e-commerce platform, secure payment gateways, and mobile-friendly order
processing, AlHatab Bakery can expand its customer base, boost sales, and increase brand
awareness in the highly competitive food retail market.
5. Competitive Pressure from Large Supermarket Chains
AlHatab Bakery faces intense competition from established supermarket chains and mass-market
bakeries that offer ready-made baked goods at lower prices. Supermarkets such as Panda, Al
Othaim, and Carrefour leverage economies of scale, extensive distribution networks, and
aggressive pricing strategies to attract a large portion of the bakery market.
Moreover, dairy brands like Almarai and Nadec are expanding into the baked goods sector,
offering complementary products that directly compete with AlHatab’s core offerings. Without
digital transformation, strong branding, and data-driven marketing, AlHatab risks losing a
significant portion of its market share to competitors who provide greater convenience,
competitive pricing, and stronger online engagement.
To combat competitive pressure, AlHatab Bakery must invest in brand differentiation, improve
customer loyalty, and create an omnichannel sales approach that includes both in-store and
online shopping experiences. This will ensure sustained customer retention and business growth.
By implementing an integrated business management system, AlHatab Bakery can:
• Reduce waste and optimize inventory through automated tracking and demand forecasting.
• Improve financial accuracy and tax compliance with cloud-based accounting software.
• Enhance customer relationships and drive repeat sales with an advanced CRM system.
• Expand revenue streams and strengthen brand presence by launching a fully functional ecommerce platform.
Strategy
To address these challenges, AlHatab Bakery will implement a digital transformation strategy
focusing on technology adoption and process automation. The core elements of this strategy
include:
1. Optimizing Inventory Management – Implementing an automated inventory tracking system
to improve stock accuracy and minimize waste.
2. Modernizing Accounting Operations – Introducing a cloud-based accounting system to
streamline financial management and ensure VAT compliance.
3. Enhancing Customer Engagement – Deploying a CRM system to track customer behavior,
launch loyalty programs, and improve retention.
4. Expanding Digital Presence – Upgrading the bakery’s website to include e-commerce
capabilities, digital payment options, and a mobile-friendly design.
5. Strengthening Market Position – Using data analytics and targeted advertising to enhance
customer reach and brand visibility.
Target Market
AlHatab Bakery targets a diverse customer base, including:
• Existing Customers – Strengthening relationships through CRM tools and loyalty programs.
• Health-Conscious Consumers – Expanding into protein-based and gluten-free baked goods.
• Young Professionals and Families – Providing digital convenience through online ordering and
delivery.
Competitors
AlHatab Bakery faces competition from:
1. Supermarkets & Hypermarkets – Chains like Panda and Al Othaim offer baked goods at
competitive prices.
2. Dairy & Protein Brands – Companies like Nadec and Almarai provide alternative baked and
protein-rich products.
Business Model & Service Blueprints
The revised business model will integrate:
• Online and offline sales channels for better market penetration.
• Data-driven decision-making to optimize pricing and promotions.
• Enhanced supply chain management using analytics to improve product availability.
SWOT Analysis
Factor
Strengths
Strong brand
Internal
recognition
Weaknesses
Lack of inventory
automation
Opportunities
Market demand for
healthy foods
Threats
Competition from
supermarket chains
Factor
Strengths
High-quality
External
products
Weaknesses
No CRM system
Opportunities
Threats
Growing e-commerce Changing consumer
market
preferences
3. Business and Technology
Current “As Is” Process
AlHatab Bakery’s current business processes are largely manual and fragmented, leading to
inefficiencies, inaccuracies, and operational bottlenecks. The lack of integration between key
business functions—inventory management, financial accounting, customer relationship
management (CRM), and e-commerce—makes decision-making slow and limits growth
potential. Below is an analysis of the current processes:
Technology Solutions Analysis
Technology
Inventory
System
Accounting
Software
Features
Benefits
Cost
Automated stock tracking, Reduces waste, improves
$5,000 (one-time),
demand forecasting
efficiency
$3,500 (annual)
Cloud-based, automated
$2,000 (one-time),
Saves time, reduces errors
VAT compliance
$1,500 (annual)
Customer insights, targeted Increases retention, enhances $4,000 (setup),
CRM & Loyalty
marketing
personalization
$3,500 (annual)
E-commerce
Online ordering, mobile
Expands sales channels,
$6,000 (setup),
Website
payment gateway
improves accessibility
$4,500 (annual)
Inventory Management
• Inventory tracking is done manually across multiple branches, leading to discrepancies in stock
levels.
• Overstocking of perishable goods leads to high wastage and financial losses.
• The lack of a real-time inventory system makes it difficult to adjust supply based on demand,
resulting in frequent stockouts or excess inventory.
• No integration with suppliers or automated order processing, increasing operational
inefficiencies.
Accounting & Financial Management
• Manual bookkeeping using spreadsheets leads to errors in VAT calculations, invoice
processing, and payroll management.
• The lack of cloud-based accounting software makes financial reconciliation slow and prone to
inaccuracies.
• Preparing financial reports for regulatory compliance requires extensive manual effort.
• Payments and transactions are recorded separately in different systems, making it difficult to
track cash flow and profit margins.
Customer Engagement & CRM
• AlHatab Bakery does not have a centralized customer database, making it impossible to track
customer purchase history, preferences, and feedback.
• The bakery relies on in-store interactions and social media posts for customer communication,
but there is no structured email marketing, loyalty program, or targeted promotions.
• Customer complaints and feedback are not systematically collected or analyzed, leading to
missed opportunities for service improvements.
• Without a CRM system, the business cannot personalize offers, send reminders for special
promotions, or analyze customer behavior.
Website & Digital Presence
• AlHatab Bakery’s website is static and informational, lacking an online ordering system or
integration with digital payment gateways.
• There is no mobile application or optimized web experience for digital customers.
• The bakery does not leverage online advertising, SEO strategies, or data analytics to increase
online visibility and attract new customers.
• Competitors who have strong e-commerce platforms (such as Almarai and Panda) are
Conclusion
AlHatab Bakery is at a pivotal stage where digital transformation is no longer optional but
essential for sustaining growth, improving operational efficiency, and maintaining a competitive
edge in the rapidly evolving bakery industry. This report has outlined a comprehensive
technology plan that focuses on modernizing the bakery’s operations through automation, data
analytics, and digital sales platforms. By addressing the existing inefficiencies and embracing
innovative solutions, AlHatab Bakery will be able to optimize its supply chain, enhance
customer engagement, and expand its market reach both online and offline.
The challenges faced by AlHatab Bakery, including manual inventory tracking, outdated
financial processes, weak customer engagement, and the lack of an e-commerce platform, have
been identified as key barriers to growth. To overcome these obstacles, the proposed strategy
integrates technology into every critical aspect of the business. The introduction of an automated
inventory management system will reduce waste, improve stock accuracy, and create a more
efficient supply chain. A cloud-based accounting system will streamline financial operations,
ensuring faster and more accurate VAT compliance, payroll processing, and financial reporting.
Additionally, the implementation of a structured CRM system will revolutionize customer
engagement by enabling personalized marketing, loyalty programs, and targeted promotions
based on customer behavior.
Expanding AlHatab Bakery’s digital presence is another fundamental pillar of this strategy. The
current website will be upgraded to support full e-commerce functionality, allowing customers to
place orders online, make secure digital payments, and schedule home deliveries. This transition
to online sales will not only generate new revenue streams but also enhance customer
convenience, making AlHatab more accessible to a wider audience. Through an omnichannel
sales approach that combines traditional retail with a strong digital presence, the bakery will be
better positioned to compete with supermarket chains and large food brands that have already
capitalized on e-commerce trends.
The phased implementation of these solutions ensures a smooth transition, minimizing
disruptions while allowing the bakery to gradually scale its digital capabilities. With a strong
focus on automation, data-driven decision-making, and an improved customer experience,
AlHatab Bakery will not only increase efficiency and profitability but also strengthen its market
position. Investing in these technologies will enable the bakery to remain adaptable to changing
consumer demands, positioning it as a leader in Saudi Arabia’s bakery industry.
In conclusion, this technology plan provides a solid foundation for AlHatab Bakery’s long-term
success by equipping it with the necessary tools to thrive in an increasingly digital and
competitive marketplace. By committing to innovation and operational excellence, the bakery
will be well-positioned for sustained growth, enhanced brand loyalty, and a stronger presence in
both traditional and digital markets. Through the successful execution of this strategy, AlHatab
Bakery will emerge as a forward-thinking and customer-centric brand, ready to meet the
demands of the modern consumer while maintaining its reputation for quality and excellence.
References
1. The HATAB DIGITAL Bakery Report. (n.d.). Internal business document.
2. Beyti Express Technology Plan. (2018). Internal consulting report.
3. Saudi Arabian Retail Market Report. (2024). Market Research Database.
4. Digital Transformation in Food Retail. (2023). Industry Insights Publication.
5. E-commerce and Customer Engagement Trends. (2023). Global Digital Business Review.
Purchase answer to see full
attachment
