In an effort to provide everyone real-time updates as it pertains to changes being implemented by Frito-Lay, starting today (3/19), we will be implementing a new (temporary) check-in/receiving process and optimizing our portfolio offerings. These changes are designed to maintain the highest possible level of safety and deliver against the constantly high demand. I have outlined each topic below:
New (Temporary) Check-in/Receiving Process: In this new process, our associates delivering the product will retain control of the handheld device and input your receiver’s name and store number in the signature field. Your stores will still verify proof of delivery paperwork and receive all required paperwork. This process will eliminate the need for the handheld device to physically change hands in the process, thus reducing risk of COVID-19 transmission.
Portfolio Optimization: We have identified skus that we will be temporarily removing from manufacturing to create longer run times on our highest volume core products, which will open up both picking and production efficiency’s to improve throughput to stores. As we continue to meet unprecedented demand, we do continue to expect sporadic cuts and traffic delays across all geographies.
PRODUCT SUPPLY: Orders for 1st half of this week are ranging from 120% - 200% to capacity. There may be sporadic cuts, but no forecasted large-scale issues as we work throughout the week, despite the increased demand at this point in time. While we are currently in a satisfactory supply position, we are experiencing some delays in picking and traffic as we deliver unprecedented volume to the market. At this time we don’t anticipate a significant reduction in SKU offering but have moved to full case orders in many areas.
LABOR: Generally, we expect call offs to be higher than usual, given projected school closures. All of our routes and facilities are operating as planned, but we will be flexing labor, and there may be sporadic labor-driven challenges that we will need to work through. At the moment we have no large scale outages.
INCREMENTAL ORDERING: Demand for plus ups has been very high across the market. As such, we will be prioritizing our top SKU’s for any incremental orders in addition to your regular orders. List of our top SKU’s is attached for your review.
Information Requested: Please let me know if you have any incremental order requests and/or are experiencing any service issues and I will ensure it gets wired through our teams