Unleashing profitability through operational efficiencies for Bakehouse Bread Company

Published on
June 30, 2025

The Challenge

Bakehouse Bread Company moved to Hatchery from another agency due to challenges they were facing across order flow, in-stock, lack of visibility to product inventory, concern on markdowns, and no confidence in the plan to build. All of this undermined their brand and its potential at Walmart, while threatening overall profitability of the business. The initial set up and a lack of time spent to understand replenishment settings at the store level were at the root cause of the challenges faced.  

Hatchery applied its operational expertise in collaboration with Walmart stakeholders to redesign the order process, optimizing purchase order (PO) frequency and adjusting Walmart's forecast cadence.

The Solution

The challenge faced by Bakehouse Bread Company was caused through initial setup and a lack of understanding of replenishment settings inside Walmart. Through partnership with merchant teams, the brand partner teams, and logistics teams, we rebuilt and optimized the business from the ground up. This created a more efficient operation; mitigating markdowns, improving profitability, and providing a pathway forward, while strengthening the brand’s presence at Walmart. This allowed Bakehouse Bread Company to not only meet demand but also build a stronger, more resilient brand that thrives in the competitive retail landscape.

Key Takeaways

After Hatchery rebuilt and implemented an updated order and service cadence with Walmart, Bakehouse Bread Company turned their operations from negative profitability to sustaining profitable operations. By optimizing order fulfillment, the company saved approximately 70% of its previous shipping costs, while ensuring consistent product availability. This strategic improvement not only stabilized Bakehouse’s financials, but also enhanced its ability to deliver on customer expectations, unleashing the full potential of the Bakehouse Bread Company's brand at Walmart. 

The Results Speak for Themselves

71%

Monthly Supply Chain Savings

Saved Bakehouse Bread Company 71% monthly shipping costs

24%

Savings index to COGS

Supply Chain Savings were 24% of total Walmart business, allowing Bakehouse Bread Company to maintain their business at Walmart.

99.8%

Instock achieved after executing new service & shipping cadence.

Achieved 99.8% instock; significant improvement from prior 13wk average instock of 82.4% (+1,700bps improvement)

"I just wanted to tell you how impressed we are with the Hatchery team. They have been awesome to work with - our only regret is that we didn't start working with Hatchery sooner!” 

Nancy McKearney
CEO, Bakehouse Bread Company

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