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Fresh breakfast,
healthier planet

Babi, a fast-growing breakfast bun company in China, innovated with SAP to tackle one of the food industry’s biggest global challenges: food waste.

Unsustainable production practices are contributing to catastrophic food waste – over a billion tons per year worldwide – with the accompanying waste of energy, water, and labor, plus elevated carbon emissions. What if Babi and SAP could create an intelligent way to match supply with demand so Babi would produce only what’s needed? Their 2,700+ stores would continue to serve hot, fresh breakfasts, while carrying virtually zero inventory at the end of each day. The result? Same great taste - with no waste.

Food for thought

Consider the concept of zero inventory. Every day is a fresh day. If China wants 4,764,072 delicious Babi steamed buns for breakfast this morning, Babi will make 4,764,072 delicious steamed buns. Any more would be a waste of time, resources, and profits. In other words, not only does reducing food waste and improving sustainability make the world a better place, it’s clearly a better way to do business.

1/3
of the global food supply is lost or wasted. [*]
Approximately 1.3 billion tons of food never reaches hungry people. [*]
2 billion
people could be fed on the world’s wasted food. [*]
Rich countries waste almost as much food as is produced in sub-Saharan Africa. [*]

Making breakfast in real time

The concept of zero waste is simple – but the logistics required to make it a reality are not. How do you deliver such huge volumes of fresh food every day, in precise numbers, across a complex omnichannel network of direct sales, franchise, and online stores - in time for breakfast? Babi needed to digitize its entire manufacturing and delivery process.

The company chose SAP to power its digital transformation, implementing SAP S/4HANA. With integrated logistics and finance, the company has now achieved exponentially greater efficiency. Today, Babi can process 60,000 data transactions within a two-hour window for each of its over 2,700 stores – 144-million transactions in just 120 minutes. And by automating their manual accounting processes, the company has greatly improved speed, accounting accuracy, and visibility.

As a result, inventory is precisely matched with demand – minimizing food waste and spoilage.

A brilliant solution

With SAP S/4HANA, Babi can monitor every stage of the production and delivery process, from the receipt of raw materials to the loading of delivery trucks to the preparation of the final dish. Matching daily inventory with customer demand, Babi delivers exactly the right orders to each of its over 2,700 stores.

A better outcome

Babi now holds near-zero product inventory – which means that every meal is served fresh and no food is allowed to go to waste. People can enjoy a healthy breakfast without worrying about the impact on the planet, knowing that more food is on the table rather than in the trash bin.

a better industry

The food industry is one of the worst offenders in the generation of waste, with unsustainable consumption and production practices. Babi is changing all of that. By proving that sustainable food production is possible, the company is raising the standard for the entire industry.

a better world

Babi’s example can influence food production and delivery around the world. With the global population poised to grow from 7-billion to 9-billion by 2050, it is more critical than ever to protect the world’s food resources. By preventing waste, more people around the world can live healthier lives.

Do more with SAP S/4HANA

Need to innovate while reducing waste – so that you can do more with less? Become a best-run business with SAP S/4HANA, the real-time enterprise resource planning suite built on our advanced in-memory platform, SAP HANA. See how you can capture every opportunity in today’s digital world.

Explore SAP S/4HANA