Contractor Saves $20,000 / month With CheckMate Tool Manager

Herzog Construction - Tool Tracking Success StoryHerzog Contracting Corp.

St. Joseph, MO

Heavy Construction Contractor

“CheckMate tool tracking software has saved our company over $20,000 per month in lost tools and equipment since we installed it 2 years ago! Our foremen feel a heightened sense of ownership for their crew’s tools and we have seen significantly less tool loss.”

- Derec Berry, Equipment Manager, Herzog Contracting Corp.

About Herzog Contracting Corp.

Herzog White PaperFounded in 1969, Herzog operates in 42 states throughout the United States as well as Canada, South America, and the Caribbean. Today, the global enterprise is the most respected and authoritative brand in the transit community. The past several years following 2008 have proven to be the companies most profitable in history, leading to unprecedented corporate growth despite tough economic times.

It’s no secret what sets Herzog apart from the rest, its employees. Herzog understands that the success of the company depends on its employees and manager use the latest technologies to help make the company and their employees more profitable. Not only do employees become familiar with railroad construction but also bridge, wall, tunnel, parking structures, utility, systems, transit stations, and operation & maintenance facilities and more. This makes for a diverse work experience not found in most companies.

The Challenge

 Herzog uses tool tracking software to increase profit by $20,000 per monthIn the construction industry chronic loss of tools is a common and costly issue that threatens profitability from both the time spent searching for lost tools and the cost of purchasing new ones. Not only does this hurt profitability, but because tool theft rates are unpredictable, it also makes it difficult to accurately quote new projects.

Herzog estimated that it replaced at least 10% of all tools purchased over the course of a project. On one recent project in particular, the company purchased more than 1,000 replacement tape measures. When Herzog’s bid won the contract for both the Denver Light Rail and North Texas Rail construction projects they decided to solve the costly problem.

The Solution

Taking all requirements into consideration, Dynamic Systems solutions engineers worked with Herzog managers to develop and implement a fully integrated solution. CheckMate Tool Tracking Software. Managers were equipped with the Honeywell Dolphin 7850 mobile computer and pre-printed 1D and 2D bar codes. A key component of the solution was the option to require each crew foreman to scan and digitally sign tools and equipment out of inventory for his or her team. This reinforced a sense of personal responsibility and ownership over the tools.CheckMate Tool Tracking Software

The Results

Since implementing CheckMate in May of 2009, tool and equipment replacement has lessened to the point that the Herzog is saving an estimated $20,000 per month.