 Contact us at:
800.676.4034 |
|
|
|
BMHC
ToolWatch Helps SelectBuild Save More Than $400,000 Annually—System Ready for Rollout across SelectBuild organization
Situation
Power to the people. It may sound like the lyrics to a classic rock anthem, but for SelectBuild, it's just a principle of smart business. A subsidiary of BMHC, SelectBuild provides turnkey construction services to the country's highest-volume production homebuilders, including concrete, plumbing, framing, HVAC, stucco and other services. Operating in 10 western and southern states, the company's decentralized structure allows specific locations to identify opportunities to improve business practices that help the company meet or exceed customers' expectations. In other words, the people who work in the trenches have a voice in making the business better.
When two SelectBuild locations, located in Northern California and Las Vegas, Nevada, separately raised concerns about similar problems in their tool warehouses, SelectBuild knew they were facing a widespread company issue. Each location was losing between $2,500 and $20,000 worth of tools each month. And this number was just raw tool costs, one that only grew when the company factored in the time spent checking tools in and out using inefficient, inconsistent systems and replacing items the company already owned.
Solution
Kari Lopez, director of business systems for SelectBuild's parent company, BMHC, was assigned to assess the problem and find a suitable solution that could be applied company-wide. Right away, she identified attributes that would be key to the solution's success.
"The system had to be easy to use and integrate with our current accounting system. When we took a look at what we wanted the program to accomplish for us, we realized that ToolWatch was the best option," Lopez explained.
Encouraged by ToolWatch's comprehensive features, including the ability to flag low levels of consumable items, SelectBuild began a detailed implementation process, bringing together field personnel, the IT team and ToolWatch experts to make sure the tool management system would work seamlessly with software the company already had in place. SelectBuild ran a two-month pilot program to ensure that ToolWatch could work within the company's business processes and would provide the benefits employees needed. The pilot also gave them a chance to smooth any snags that could arise once the system was live.
Result
The two SelectBuild pilot locations that initially raised concerns about their tool management systems have transitioned ToolWatch into their daily operations. Six months after implementation, the results have been even better than Lopez expected. The initial savings analysis indicates the company will save more than $400,000 a year just by using ToolWatch in the Las Vegas and Northern California locations. This savings includes quantifiable improvements to the company's warehouse processes as well—more than 5,600 hours in time saved each year, which accounts for more than $150,000 of the total annual savings.
"ToolWatch has let us spend less time monitoring inventory levels and consolidate purchase orders," explained Lopez. "That means we're not only saving time on all those activities, we've been able to reassign employees new responsibilities and get more tasks done every day."
That makes two down, more than 30 SelectBuild locations to go. As SelectBuild presents its impressive results to the company management team, new locations have the opportunity to adopt ToolWatch themselves. And if their results mirror those of Las Vegas and Northern California, SelectBuild's financial rewards will increase exponentially.
|
|
|
|
