Optimize Cash Flow
Move Costs from Variable to Fixed
Attract and Retain Talent
Growing the Business; Outsource Non-Core Functions
Transcript of Contech Engineered Solutions L.L.C.
What Contech Does
JOE KUHN, Area Manufacturing Manager: Contech is an engineering sight solutions company. We are a sales organization that also happens to manufacture products.
NOBLE LEVESQUE, Plant Manager: What we do is we produce precast storm structures, bridge components, and also the associated pieces that go with it- whether it’s express foundations, or wing walls and head walls.
Where Contech is Located
JOE: I have facilities in *Palmer, Massachusetts *Greencastle, Pennsylvania *Summit, Kentucky *Inglewood, Tennessee *Cookeville, TN. I’m on the road about 75% of the time.
How Contech Uses Their Vehicles
NOBLE: Our vehicles provide a lot of confidence that we can deliver to our customers what they need, when they need it; plywood, 2×4’s, 2×6’s, insulation materials. We rely on our vehicles to operate routinely for us without giving it a whole lot of thought.
JOE: Right now we have about 150 Sales Engineers out in the field. All if not most have a vehicle supplied by Mike Albert. I have friends that have vehicles and they’re always worried about different things like “Oh, I’ve got to get a new vehicle!” or “Maintenance is taking forever!”.
If you start to have an issue with a truck, you just call Mike Albert and they’ll set up an appointment for you. They take care of all the maintenance. Personally, it simplifies my life a tremendous amount.
One thing we really like about Mike Albert – it’s taken a variable cost and made it more or less a fixed cost. We now know what our cost is related to company vehicles month in and month out. That helps us plan. Right now our forklifts are a very aging fleet. The repair and maintenance keeps going up. We don’t necessarily know from a planning standpoint how much we’re going to spend one year to the next. We’re actually looking at what we’ve done with Mike Albert and seeing if we can apply that to the forklifts.
At one point we actually had three people managing our vehicles, mileage, and all those things. Over the last couple of years we’ve rolled all that over to Mike Albert.
NOBLE: Oftentimes vehicles get switched from division to division. One of our vehicles came from Utah. With the whole transfer process of getting this vehicle from one plant to the other was handled seamlessly. The next thing I knew, our logistics team was working with Mike Albert to coordinate the details of getting that vehicle here.
Mike Albert’s Value
There’s a lot of things that go on in our day here. Whether it’s managing customer demands, or making sure that trucks are getting loaded properly and heading down the road with their permits, and so on. This is one aspect of our business we don’t have to spend lots of energy fussing about.