Tuesday, July 2, 2019
Kimball International now in line with the new Kimball International Connect strategy will implement the transformation plan to enhance operational performance and efficiency. Kimball plans enhanced, optimize resources, improve efficiency and build capabilities across the organization that will establish a more cost-efficient structure to better align operations with long-term strategic goals.
Kimball is set to evaluate its overall manufacturing facility footprint to reduce excess capacity and gain efficiencies. As part of this initiative, the company plans to exit a leased seating manufacturing facility in Martinsville, Virginia, as well as evaluate its production capabilities and capacity across the organization for additional opportunities.
Kimball further aims at creating a center-led functions for finance, human resources, information technology and legal functions, which are expected to result in standardization of processes and elimination of duplication. Besides this, the company is centralizing its supply chain efforts to maximize supplier value and plans to drive more efficient practices and operations within its logistics function.
Kimball will further reallocate the brand selling resources to higher-growth markets, and exit four product showrooms across the brands. The transformation plan will begin immediately, and the Company expects a substantial majority of the underlying activities of these actions to be completed by the end of its fiscal year 2020.