Gloria Jean’s Coffees

After aligning core goals with the top management, Knowhow team worked with the client to:

• Analyse cost factors at the store level and identify root causes
• Prioritize the root-cause analysis impacting cost factors and understand the 2^nd and 3^rd level relative causes and impacts
• Interview store-level manpower and observe daily operations for each store to identify success factors
• Analyse store and Distribution Center (DC) level item performance considering seasonality, store location, income, and consumer background
• Conduct surveys with consumers and manpower in stores to understand consumer preferences and apply statistical analysis to rationalize the results
• Explore new brands in line with franchising guidelines to increase sales and decrease operation costs.

As a result of the collaboration between the client and Knowhow, the following outcomes were achieved:

• Items were categorized and prioritized based on store priority instead of DC, which led to decentralizing the item-priority matrix and identifying not only the best, moderate, and low-performing SKUs, but also vital, essential and desirable SKUs based on each store’s target consumer segment
• The mindset of “think global but act local” was adopted to support customer retention
• Order and logistics processing was re-prioritized based on store sales and profitability, resulting in minimizing costs and increasing profitability
• Three suppliers were onboarded to introduce new brands in line with the GJC franchising guidelines
• Key performance indicators (KPIs) were put into practice, linking sales, customer retention, and store cost to incentives.

The collaboration resulted in:

• Reducing operational costs by 5.7% from inventory, obsolete stock, and logistics, which led to increased profits
• Increasing order transactions by 12% by implementing a value-driven bonus system, stocking the right product in the right store, maintaining the right stock level, and replenishing at the right cycle
• Launching a loyalty card that increased repeated sales by 9% contributing to customer retention.

At Knowhow, we offer a comprehensive range of expert consulting services that are designed to take your business to new heights. Our team of experienced consultants specializes in Business Processing Re-Engineering & Feasibility, Supply Planning & Procurement, Inventory Optimization, KPIs & Performance Management, and Customer Service & Logistics Management, all of which used for this project.

With our customized solutions, we can help you streamline your operations, optimize your resources, and achieve your business objectives with greater efficiency and profitability. Let us help you unlock the full potential of your business – contact us today to learn more about how we can work together to achieve your goals!