 Contact us at:
800.676.4034
|
|
|
|
GEM Plumbing & Heating
GEM Plumbing & Heating Saves Money, Empowers Employees with Help from ToolWatch System
Situation
Innovation, creativity and empowerment arent words generally associated with the plumbing trade. Unless youre talking about Rhode Islands GEM Plumbing & Heating, that is.
About four years ago, GEM had reached a point in its growth where it had to make a choice: cut back operations or dramatically change the way they operated. They couldnt raise rates—the market was maxed out—so they decided to completely overhaul the way they did business.
Solution
One of their fundamental decisions was to focus on their core business—which was not managing their inventory. They contracted with Ferguson Integrated, a division of the countrys largest plumbing supply wholesaler, to manage their inventory on-site. GEM doesn't pay salaries for the half-dozen Ferguson workers and doesn't even pay for the $500,000 worth of inventory kept on the warehouse shelves at any one time until each piece is used.
But before turning the inventory over to Ferguson, GEM wanted to make sure everything was in order. They researched a number of tool tracking programs, looking for something that would take them into the future. While other products had useful features, they required gatekeepers to manage the program, which would be cumbersome and expensive because they required additional manpower to run. ToolWatch seemed ahead of the pack in keeping up with technological developments such as partnering with Bosch in offering RFID tracking systems. ToolWatchs wireless technology, which let them transfer information from the field, was another strong selling point. That meant lower labor costs because staff could update information quickly and efficiently. ToolWatch also fit seamlessly into GEMs business model, saving—not costing—time.
There was some initial resistance to investing $25,000 in the ToolWatch system, said GEM vice president of operations Larry Gemma. But in just nine months, replacement tool purchases were down more than $65,000. And because tools are monitored, Gemma estimates he gets at least another years use out of every tool.
GEMs unique tool rental program charges employees for the length of time a tool is checked out, encouraging employees to return tools to the central warehouse as quickly as possible for use by others. Now that tools are monitored with ToolWatch, employees are more careful with their tools, because they know broken items will be charged back to them in the form of payroll deductions or reduced bonuses. And it works both ways—workers notice that with tool tracking not only will they have a tool when they need it, it will be in good condition and ready to use. They appreciate that.
Result
GEM has grown comfortably from 125 to 325 people over the last four years, smashing every stereotype about the plumbing business along the way. GEM is one of the most technologically aggressive plumbing outfits in the world, Gemma says. In fact, GEM has won numerous awards for its innovations. Its GEM University trains and empowers its employees—and even those of its competitors—to do their jobs better, including the use of their tools. In fact, the ToolWatch system is often part of the GEM University curriculum.
|
|
|
|
