• The Coordination of Production and Sales in IJYSHENG Bakery

Abstract

Founded in 1980, IJYSHENG Bakery now has 22 chain stores and an annual revenue of more than NTD 800 million. Along with the economic and social development, Taiwan's baking industry has grown rapidly in recent years, reaching a market size of around NTD 60 billion. Sales channels can be divided into two categories: stores that specialize in bagged bread, for example supermarkets, convenience stores, and cake specialty stores, and the branded baking industry that focuses on freshly baked bread. It is an industry where small and medium-sized enterprises are highly competitive.

Best sellers are always out of stock, while a pile of unpopular breads are left. IJYSHENG Nanjing Store has solved this dilemma through POS and ERP systems, and adopted a profit sharing system to incentivize sales and production coordination. This case study mainly discusses on how to use the management system to improve the operating efficiency of the marketing-oriented bakery industry, and in turn proposes practical management implications.

Keywords: IJYSHENG bakery, Coordination of Production and sales, POS, ERP, Postponement Strategy