Colorado Tech Shop Success
Last quarter, H2 Solutions bought electronics manufacturer Colorado Tech Shop in the middle of a supply chain crisis. The company was not running profitably, but H2 knew we could come in and turn things around with our top-of-the-line products and business consulting services. H2 implemented our suite of products and completely overhauled the business, and the results are quite exceptional.
The quarter before H2 took over the company, Colorado Tech Shop had 18 corrective action reports (CARs). After implementing H2 CAP, in the first quarter of ownership H2 decreased the number of CARs to 3. This is an 83% reduction in corrective actions in just one quarter.
Colorado Tech Shop was running at a -50% profit margin when H2 took over and the company was struggling with a negative purchase price variance (PPV). In our first quarter of running the company with our products and tools, H2 has Colorado Tech Shop running at over a +15% profit margin with a positive PPV of +38.95%. The quoting process itself was also streamlined with H2 EZ Quote, and Colorado Tech Shop increased its quoting capacity by 300%, allowing them to bring in more business and decrease quoting costs.
- 83% reduction in CARs since takeover
- 65% upswing in profit over the course of one quarter
- Run a positive PPV of +38.95% since takeover
- Expedited quoting process and increased quoting capacity per day by 300%
- Complete culture change
- Restructured T&C’s resulting in a large reduction in rework and returns from clients
“I will definitely be requesting quotes for various assemblies. I enjoy working with you and like your willingness to negotiate and compromise. I have seen a great improvement in willingness to pursue work as opposed to before when there was no follow up.” – Alex Sammoury, Conduant
“The whole operation is a lot more organized now. Processes were drastically changed, all for the better. Heidi goes to town for her employees, never throws us under the bus, and is exceptional at handling client expectations and conflicts to make life easier on us.” – Andrew Brzycki, CTS Employee
Other Key Improvements
- Prior to H2’s takeover, Colorado Tech Shop struggled with inventory tracking. It often was not clear what parts they had or where they were located within their warehouse. H2 implemented our H2 EZ Track inventory system, and now inventory tracking is completely up to date and all parts in our possession are logged and easily accessible. H2 EZ Track is also a cloud-based system, so employees can access or make edits to their inventory from anywhere.
- H2 restructured Colorado Tech Shop’s terms and conditions using H2 Falcon and drastically reduced the number of returns from clients and rework required. This caused a dramatic cost reduction as much less time was put into rework and client conflict mitigation. This also increased client satisfaction as all terms and conditions were clearly outlined to ensure the client gets exactly what they ask for.
- Colorado Tech Shop struggled with revision controls and oftentimes had the wrong builds leaving their doors because they were completing the build according to an old revision of the BOM. H2 implemented H2 Precision into the operations of Colorado Tech Shop when submitting quotes and accepting POs to ensure we find any and all changes to client documents before we start working on the job. H2 has a proprietary BOM Comparator that scrubs newly received BOMs to track any changes the client has made, so we can be fully aware and ensure we are building exactly what the client is looking for.
- H2 implemented H2 Command which includes a status board as well as regular huddle meetings. This gave the organization a structured tool for task assignment, management, and accountability. This drastically improved productivity and benefitted workplace morale by instilling a collaborative culture into operations.
If your company could benefit from any of these services, email or call the following:
Cell: (303) 517-6541