Though some original plans were delayed when the pandemic hit, other operational recommendations were revised and deployed to effectively manage the business during a time of major disruption.
From adjusting store hours to consolidating product preparation at anchor stores, these actions were implemented to ensure sustainable, profitable growth. KHC also introduced temporary labor adjustments such as layoffs of part-time employees, along with shift changes and reduction of variable wages for full time employees, to reduce costs and stabilize gross margins.
In addition to identifying improvement opportunities, CCO opened a door that allowed KHC to view the business and its operations in new ways. Applying tools and techniques from other industries provided a new point of view to assess the business.
Once the pandemic is over and operations can return to normal, KHC will revisit initial corrective actions such as closing one store and rescheduling store shifts to align with sales. By decreasing overhead costs and increasing labor efficiency, KHC will continue on the road to optimized performance and profit at both the enterprise and store levels.
CCO’s FIT Operations approach will ensure a business can adapt to its corresponding environment, handle unexpected variability in the process, and maximize the value from the potential energy in the system. CCO has applied this methodology countless times to help its clients find and fix problems and set them on the path to their highest potential and performance.