Bakery kneading past 1,000 delivery routes 


By CY LEE
(Seated from third left) Koh, Gardenia Bakeries (KL) Sdn Bhd director Tan Sri Abdul Hamid Bador, Khoo and employees during the celebration of the company’s 1,000 routes. — Photos: AZMAN GHANI/The Star

FOR many Malaysians, the day begins with the familiar Gardenia colours on the breakfast table.

Now, that daily routine has become more meaningful as Gardenia Bakeries (KL) Sdn Bhd reached 1,000 delivery routes across Peninsular Malaysia.

Its chief executive officer Koh Chin Huat said the milestone reflected a long journey.

“When I joined in 1991, we had one product, one plant and 17 routes.

“Today we have 1,000 routes, more than 1,000 trucks and deliver to over 35,000 outlets daily.”

Koh said Gardenia entered a market that was saturated with over 300 small bakeries.

“A loaf of bread then sold for 65 to 70sen,” said Koh, noting that Gardenia had then priced its 400g loaf at RM1.30.

The bakery, he said, entered the market with an aim to provide the best possible product for consumers.

(From left) Abdul Hamid, Koh and Khoo cutting a cake to commemorate the company’s 1,000 routes.
(From left) Abdul Hamid, Koh and Khoo cutting a cake to commemorate the company’s 1,000 routes.

“To be different, we had to offer a better product,” he told StarMetro during an event in Kuala Lumpur where the bakery celebrated the milestone.

Koh said Gardenia was the first to have an expiry date, which was not a requirement at the time.

“We were also the first to advertise about bread and the first to include nutritional information on each loaf.

“We also used sponge-and-dough when others used straight dough,” he added.

Over time, Koh said Gardenia chose to go directly into retail outlets.

“We changed the system from just relying on bicycle and motorcycle vendors because we wanted better control over delivery, which affects how and when stores and consumers receive our loaves,” he said.

“From there, our turnover grew from RM1mil a month to RM2.7mil.”

Gardenia then expanded to the east coast in 1994 after opening its second production plant, he said, adding that the company now operates six factories and 18 production lines.

Its longest “bread-run” route runs from Shah Alam in Selangor to Kota Baru, Kelantan.

“That journey can take close to 20 hours,” Koh said.

“We use a feeder system so the truck keeps moving and only drivers rotate.”

Gardenia, he said, insisted on managing its own logistics.

“Quality control is everything. Even if it is an extra 10km for one outlet, we will make it happen.”

Chief operating officer Derrick Khoo said the company’s growth has doubled in recent years.

“When I joined eight-and-a-half years ago, we were doing RM800mil in turnover.

“Today, we are close to RM1.5bil.”

Khoo said with Gardenia being the dominant player in the market, it has to compete with itself.

“When you are the market leader, you have no one to copy. Like a sprinter, you must aim to beat your own best time,” added Khoo.

He said the company invested millions each year in research and consumer studies.

“This is how we create products like Quick Bites Durian cream roll,” he said.

Gardenia currently produces 63 products daily, including bread loaves, buns, rolls, cakes, spreads and instant noodles.

“Our trucks travel every day to bring warmth and goodness to the breakfast table.

“That is our ‘Always With You’ promise in action,” added Khoo.

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