Remember Kronecker $\delta$ "is" the identity matrix, so contracting one suffix has the effect of replacing suffix. So you get
$$\require{color}
{\color{blue}\delta_{il}}{\color{red}\delta_{jm}x_j}{\color{blue}y_l}z_m={\color{red}x_m}{\color{blue}y_i}z_m=y_i(x\cdot z).
$$
Remember Kronecker $\delta$ "is" the identity matrix, so contracting one suffix has the effect of replacing suffix. So you get $$\require{color} {\color{blue}\delta_{il}}{\color{red}\delta_{jm}x_j}{\color{blue}y_l}z_m={\color{red}x_m}{\color{blue}y_i}z_m=y_i(x\cdot z). $$