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1.5 Million Check Scanners Proudly Produced in California!

In the early 2000s, our manufacturing plant embarked on a climb, assembling a few thousand check scanners annually, laying the foundation for another in a line of technological summits. After 23 years of ascent, behold the latest summit – 1.5 million check scanners, a mountain of achievement!

Digital Check is grateful to our valued customers and our dedicated team who have made this achievement possible.

Commencing Celebrations: Marking the Achievement of 1.5 Million Scanners Sold with a Joyous Team Gathering in California on December 12th. Every Smile Tells a Milestone Story.

As you can see from the picture to the left, taken on December 12th at the plant in Rancho Cucamonga, there are many smiling faces as we all enjoyed a festive holiday luncheon AND celebrated the 1,500,000th check scanner assembled.

At the luncheon, I shared with everyone that “I have been traveling to the Ontario Airport for the last 34 years, and while we are celebrating the 1,500,000th scanner today, I was also here when we produced the first check scanner over 20 years ago”.

We began our check scanner journey in the early 90’s when we sold Buic 1000 check scanners made in Italy by Buic S.r.L. in Milan, and later the TellerScan 200 (TS200) by HTL R.r.L. also in Italy. Then, in the late 90’s, to better production control and “out of box” performance, development, technical support, and delivery, we decided to move 100% of the production operations and parts purchasing from Italy to the USA and to Rancho.

That was 25+ years ago and today, Digital Check remains The Secure Choice® and the leading producer of check scanners in the world.

- CEO, Tom Anderson

Each check scanner is a marker, a testament to Digital Check's climb towards creating products users love.

 It's not just a climb; it's a journey celebrated by users who choose us for our quality, simplicity, and commitment to the future.

1989 vs. today
Assembly Floor Workshop

The visual comparison to the right showcases the evolution of our assembly workshop the first picture was taken shortly after we moved into the building in the 1980s, the second, taken recently. It is the same space, but over the years it has evolved from a bare-bones workshop into a modern production facility. The most noticeable difference is probably the drop ceiling that allows better lighting and a more pleasant work environment, but you can also see subtle improvements like the overhead stabilizers for hand tools and the better-organized components bins that improve ergonomics and employee safety. It is hard to believe it is the same room!

2-microseal-1980s-workshopCurrent workshop 2023 2
side-room-facing-QA-room-circa-1980sside-room-facing-QA-room-2023 2

1989 vs. Today
Quality Assurance Room

The slider on the left captures the transformation of our Side Quality Assurance (QA) Room the room right next to the assembly floor from the late ’80s to now. One of the main differences you can see is what we were producing: in this case, a copy machine that we manufactured for Sharp. Contract manufacturing was a big part of our business back then, paying the bills as we transitioned our main operation from microfilm into the digital age. Today, this space is filled with our own scanners waiting for their Quality Assurance check. This room also used to serve as our entire warehouse and shipping/receiving department, for both components and finished goods!

2015 vs. today
Warehouse and Shipping

The top image shows our first standalone warehouse, after the logistics department finally outgrew our main production facility in the early 2010s. The bottom is one of several rows at our current facility that is more than triple the size. As you can see, things are a lot busier now! This building also houses our customer service, repair, and IT departments.

older warehouse v22023 warehouse v2

A Decade-Long Journey of Innovation, Evolution, and Strategic Expansion

2002

Maintaining Contract Manufacturing Ventures

In 2002, when our former head of manufacturing, Glenn Embury, arrived, the company was primarily engaged in assembling TellerScan TS400 and 400ES scanners from kits, along with procuring units from partners in Italy for contract manufacturing. The portfolio extended to include products for ST Imaging, Kodak, and others. We had successfully developed mass manufacturing capabilities for electronics, but most of our products at the time were built for other companies.

Pictured: TS400 Scanner

Pictured:  TS220, the first scanner we built ourselves

2003

Moving Toward Our Own Product Lineup

Around early or mid-2003, the company ventured into in-house product development with the design of the TellerScan TS220. This marked a significant shift from contract manufacturing to procuring components and building scanners independently. We were still only producing 100-200 scanners a month at this point but 2003 was also the year that the Check 21 Act passed into law. That would soon turn check scanners from a niche product into something that nearly every bank branch in the country would soon come to use.

2004

Ramping Up Production and Diversifying Procurement

The year 2004 witnessed a crucial transition, as we received our first major order, a 14,000-unit purchase from Bank One. Almost overnight, we had to increase our output by almost 10 times. Simultaneously, the company delved into offshore procurement, initially moving printed circuit board (PCB) assembly overseas and gradually expanding to other components. This marked the “real” start of our 1.5 million scanners!

Captured in this image is Glenn Embury, the visionary behind the inception, circa 2004. He is seen visiting overseas suppliers, a pivotal move in the process of relocating PCB assembly operations abroad.

2007-2012

Evolving Manufacturing Dynamics

The TS220 was an important first step into check scanner production, but it had issues that prompted us to do a major redesign and re-release it as the TS220-ES. From that point on, we brought all our product design and engineering work in-house. The TellerScan TS230 was our first completely self-designed product, followed soon after by the CheXpress CX30, the award-winning single-feed scanner designed for remote deposit capture (RDC). The CX30 became our best-selling model ever and brought RDC within reach of the small business market. During this time, our manufacturing plant also transitioned from using assembly lines to “cell-based” manufacturing, where each unit is made from start to finish by one employee. We have continued with cell-based manufacturing to this day.

2014-2015

Supplier Partnerships
and Overcoming Challenges

The years 2014 and 2015 presented formidable challenges, including the Los Angeles port strike and slowdown, at the same time as our biggest-ever order to that point, which required tens of thousands of scanners to be delivered within a few months. During this critical period, supplier partnerships played a pivotal role in overcoming crushing supply chain bottlenecks, highlighting the crucial role of collaborative relationships in sustaining the company’s operations.

Pictured: LA Port

Photo Credit: Creator: Genaro Molina Credit: Los Angeles Times

Featured: This photograph illustrates the substantial growth and expansion of Digital Check’s California Facility since the early 1980s.

2006-2018

Expanding Facilities to Meet Growing Demands

Between 2006 and 2018, the company faced space constraints due to escalating production volumes. Multiple expansions, including acquiring additional suites, buildings, and warehouses, were undertaken to accommodate the growing demand. The strategic moves included acquiring facilities on Trademark Street, 7th St building, Lucas Ranch building, and culminated in the relocation to the San Marino building in 2018, providing ample space for future growth.

2018-Present

Navigating Growth and Adaptation

In the dynamic period spanning from 2018 to today, Digital Check, showcased remarkable adaptability and growth across various facets of its operations. From reinforcing supplier partnerships to expanding California manufacturing and optimizing the supply chain, Digital Check strategically navigated challenges. The company’s commitment to process optimization, employee growth, and overcoming hurdles such as semiconductor shortages and port strikes reflects its resilience. With a focus on innovation, our company positions itself for continued success in the evolving landscape of the digital technology sector.

Commencing Celebrations: Marking the Achievement of 1.5 Million Scanners Sold with a Joyous Team Gathering in California on December 12th. Every Smile Tells a Milestone Story.

2002

Maintaining Contract Manufacturing Ventures

The image showcases the Buic 1000 scanner from Buic.
The image showcases the TS400 scanner.

In the 1980s and 1990s, our company underwent a transformation as it went from manufacturing products related primarily to high-end microfilm cameras, and moved more toward digital imaging. During that time, we became established as a contract manufacturer of electronics for companies like Honeywell, Bell & Howell, Motorola, and others.

Although the full significance wouldn’t become clear until much later, a pivotal moment occurred around the turn of the millennium, when we began contract manufacturing and direct importing of a new product, the check scanner. Glenn Embury, our respected engineer who has since retired, played a vital role in the comprehensive oversight of our manufacturing processes.

“We assembled the TellerScan TS400 and 400ES products from kits. Additionally, we sourced the TS300 and 350 EBS units from our partner HTL in Italy, along with the Buic scanner from Buic. We were also responsible for contract manufacturing for ST Imaging, producing the Gideon reader filler, carriers, etc. Simultaneously, we handled the ImagR and micro trac products for Kodak. In essence, we functioned as a contract manufacturer for Digital Check, ST Imaging, and Kodak during that period.”

‐ Glenn Embury

MILESTONES

Growth in CA Manufacturing:

Before 2004, our monthly scanner production was below 100 units, assembled from kits supplied by our partner in Italy, HTL. During this period, our main focus was on serving as a contract manufacturer for Kodak and ST Imaging.

Capacity:

In 2002, we operated within an 11,000 square-foot facility encompassing manufacturing, engineering, accounting, IT, service, and other departments. It was estimated we could produce around 25,000 scanners per year if needed — but before the Check 21 Act, demand never came close to that.

Supply Chain:

In 2002, all procurement was domestic, except for the scanner parts kit received from our partner in Italy.

Employees:

In 2002, our California plant had roughly 15 employees.

Process:

In 2002, due to the limited volume, the assembly process was somewhat ad-hoc, and testing procedures were subjective.

Meet the TS220: Our first scanner crafted from inception, marking a shift from contract manufacturing to in-house production.

2003

Moving Toward Our Own product Lineup

In the early to mid-2003 timeframe, our collaborative efforts with our partner led to the inception of the TS220 product—a significant milestone, as it marked our entry into the realm of procuring components for our own products. This marked a departure from our previous focus on contract manufacturing. The TS220 was a pivotal project, with Glenn Embury, our dedicated (now retired) engineer, spearheading its development. From its conceptualization to the meticulous testing phases, Glenn played a pivotal role in bringing this product to fruition. It represented our inaugural foray into the comprehensive procurement and construction of scanners. Reflecting on this period, Glenn succinctly captures the essence of our evolution in the following quote: 

“Early 2003 or maybe mid-2003 is when our partner designed the TS220 product, which was the first product for which we procured components. We built the product; we tested the product basically from the ground up to the finished product. So that was the first ‘real’ product other than obviously the contract manufacturing. But for scanners specifically, that was the first time that we really got into procurement in actual building ‘from dust’ scanners.”

‐ Glenn Embury

2004

Ramping Up Production and Diversifying Procurement

Glenn Embury meets with suppliers at their factory in Asia. In-person visits and hands-on inspections have been part of our supplier vetting process since the very beginning.

In the early stages of launching the TS220, domestic procurement posed challenges, which were compounded by changes in the design of the product. Before easy translation tools were available, language barriers with Italian prints, sometimes including abbreviations, made it daunting to get the new designs working. Weekends would often be spent with Phil Barboni, our other primary engineer and previous head of the manufacturing operation, getting small batches of scanners working for prototypes. A 14,000-scanner order from Bank One in late 2003 meant production ramped up in early 2004, marking the “true” start of our 1.5 million scanner count.

 

“When we first started the TS220, we did local procurement from local suppliers. In a dynamic situation with changes on the scanner, working through the design to make the product manufacturable was challenging. As the only engineer at the time, it was especially difficult dealing with prints in Italian and abbreviated information. Without Google Translate, it was challenging to address and work through these issues.

Getting the product ready for repeatably building it was a significant challenge. Phil (Barboni) and I spent weekends working late to get 10 scanners to function initially for prototypes. Ramping up production posed challenges in various aspects, including procurement, working through a new design, and addressing the nuances of design perfection and changes. We received a 14,000 scanner order from Bank One towards the end of 2003, aligning with the completion of the scanner, leading to production ramp-up in early 2004. Hence, I consider the count of 1.5 million starting in 2004, not 2002.

The main difference was the volume. Initially doing around 100 scanners a month, we had to ramp up to about 100 a day. Quickly devising methods, processes, and procedures for manufacturing at this scale was crucial. We started implementing automated testing at that time, because we really wanted to avoid subjective testing. This marked the genesis of the automated test program in California today. We had significant hiring, automation, equipment setup, and work instructions to adapt to the increased volumes, and we set up flow line manufacturing, which lasted until around 2011-2012 when we transitioned to cell-based manufacturing.

In 2004, our offshore sourcing was limited. The first step outside the US was the printed circuit board assembly (PCBA), followed by the MICR head, which had previously had some quality issues. Over four years, between 2004 and 2008, we gradually expanded offshore, moving to China and eventually to Vietnam in 2011. With a small technical group, Phil and I, as engineers, handled TS220, assembly line setup, and offshore procurement visits.

Some cases involved working with domestic suppliers expanding to Asia. Networking with contacts in the US and purchasing played a role. Luck also played a part, with suppliers contacting us. Networking with existing contacts led to partnerships, like in Malaysia. In Vietnam, having a contact in the country facilitated our entry. One of our product team members, who had worked with me at Fujitsu, had family connections there, and they would seek out potential partners based on what we needed. Even as early as 2004, Google Maps was also a valuable asset for finding potential suppliers in a given area.”

‐ Glenn Embury

MILESTONES

Growth in CA Manufacturing:

This was the year that check scanners went from a niche product to one high in demand, mainly because of the Check 21 Act, which was passed in 2003 and took effect in 2004. 

We count 2004 as the start of our 1.5 million scanners produced domestically, marked by the shipments to Bank One of the TellerScan TS220 product.

Supply Chain:

Beginning in 2004, we initiated procurement operations in China and consistently expanded our presence in the country annually. Simultaneously, we extended our procurement activities to other countries, including Taiwan, Malaysia, and Vietnam. This strategic expansion significantly contributed to reducing the cost of the TS220 by half.

Challenges:

In 2004, we initiated the production and shipment of the TS220, experiencing a substantial increase in volume from less than 100 units per month to 100 units per day. This marks a pivotal point in our production timeline.

From 2004 to the present, our efforts have been focused on identifying, selecting, and qualifying suppliers in Asia. We conduct semi-annual visits to these suppliers, actively seeking their input on ideas to minimize tooling costs, maintenance expenses, and overall product costs. Additionally, we explore concepts aimed at reducing labor costs through collaborative feedback from our suppliers.

Process:

In 2003-2004, we implemented assembly flow lines and automated the testing process to maximize computer-based checks, minimizing subjectivity and mitigating inherent human errors.

MILESTONES

Growth in CA Manufacturing:

During the 2008-2010 recession, our volume saw a significant increase as the economic downturn subsided. Our manufacturing nearly doubled from 2010 to 2011. 

Space/Capacity:

In 2008, we acquired additional space in our original Trademark Street building, giving our manufacturing operation the entire 16,000 square-foot building, a 45% increase over the previous years.

The year 2010 witnessed the addition of even more floor space as we expanded into the adjacent building, bringing the total to 20,000 square feet. This allowed our engineering team to move out of the cramped space they shared with Quality Assurance, and into their own dedicated building.

In 2011, a 9,000 square-foot warehouse, referred to as the Lanyard building, was added, but it was outgrown within one year.

By 2012, the Lanyard building was closed, and a larger 25,500 square-f00t building named 7th Street was added.

Challenges/Process:

Switched from “flow line” (assembly line) to cell-based manufacturing (one employee builds an entire scanner), enhancing efficiencies and quality.

Designed new products with a focus on manufacturability to reduce costs.

Implemented layout changes to enhance capacity, utilization, and efficiency, incorporating 7 major building layout improvements without impacting product availability to customers.

Introduced assembly aids to alleviate assembler fatigue.

Implemented assembly automation, such robotics for baseplate assembly, to reduce costs and enhance quality.

Adopted dual 100% testing in both product and QA processes.

Executed 6 warehouse/repair depot moves without disrupting customers.

2007-2012

Evolving Manufacturing Dynamics

Between 2007 and 2012, the company underwent a transformation in production dynamics, shifting from a flow line to cell-based manufacturing. Throughout this timeframe, the company consistently adjusted methods and procedures to accommodate rising production volumes, demonstrating a steadfast dedication to enhancing efficiency and flexibility in its manufacturing processes.

    1.  

“We established a flow line, and it lasted through 2010. It involved 3-4 stations, including assembly and testing at each line. As volumes increased, we transitioned to cell-based manufacturing, around 2011 or 2012.”

‐ Glenn Embury

MILESTONES

Growth in CA Manufacturing:

Between 2011 and 2015/2016, our production nearly doubled, and our growth trajectory continues.

Challenges/Process:

During port strikes and slowdowns, coupled with an increase in demand:

In 2014-2015, we faced the worst situation—a perfect storm. Ports experienced significant slowdowns just as we received a critical order from a major U.S. bank for an additional 30,000 scanners. The challenge intensified as the normal lead-time for parts was 3 months, and at that time, it was running at 4-5 months. We were on the verge of shutting down manufacturing for lack of components, with only half a day’s worth of stock remaining.

In 2015, we implemented screw robots for the assembly of baseplates.

Employees:

In 2015, our workforce reached a new peak at 117 employees.

2014-2015

Overcoming Challenges THROUGH Supplier Partnerships

In this image, the Port of Los Angeles stands as a backdrop to a pivotal chapter in Digital Check's history during the 2014-2015 strike and slowdown. The L.A. and Long Beach port strikes, a major labor dispute affecting two of the nation's largest ports, posed significant challenges to the supply chain. Amidst this disruption, Digital Check faced a surge in demand, notably a 30,000 scanner order from a major customer with a six-month delivery timeline.

The relationships forged over the years with our supply chain partners took center stage in 2014-15, when we faced a crushing materials shortage during the dual port strikes at Los Angeles and Long Beach. Adding to that supply chain pressure, at the same time the strikes were going on, we received an unexpected new order for tens of thousands of scanners that needed to be delivered in a short amount of time. Thanks to the efforts of our overseas partners, we were able to get new components made on an accelerated timeline; rush-shipped, in some cases by air freight; and arriving just in time at our factory to keep the production line running. At its most dire, the components crunch had us within half a day of running out of parts completely! We couldn’t have gotten through it without the help of our suppliers going above and beyond to meet the demand.

“The other important thing is the supplier partnerships; we couldn’t have done it without the partnerships and the supply chain that we have set up over the years and their dedication to Digital Check. They went out and found parts we would never be able to find. When we told them to jump, they said how high, and you know they pulled us out of a lot of fires.”

“I’ll tell you, when our demand jumped up, we had a lot of challenges, and probably the biggest challenge I’ve ever faced was 2014-2015, which was the L.A. port strike and slowdown, at the same time we got a large non-forecasted order for CX30s that needed delivery over six months. And we would not have been able to pull that off without our suppliers, because they had to duplicate everything that was stuck on the boat.”

“We had to have them rebuild, put it on a plane to get it to us, and there’s time and time again where we’ve been so dependent on them to help us out of a fire situation. So again, this building the supplier partnerships is extremely key to the whole — ah, it’s one of the COGS in the wheel, if you will.”

2006-2018

Expanding Facilities to Meet Growing Demands

The above image illustrates the expansion of our California facility.

The period spanning 2006 to 2018 marked a crucial phase of expansion and adaptation. The journey began in 2006, where the company found itself reaching its limits within the confines of suites A&B in our original building in Rancho Cucamonga. But orders weren’t slowing down, and we needed a way to keep pace, and fast. We temporarily enlisted the help of a Japanese partner that made stepper motors for us, and we had some early TellerScan units built in Japan — the only time they were made outside the United States.

Subsequent years saw a series of strategic moves, from acquiring additional space at our main complex on Trademark Street, to navigating through setbacks during the recession in 2008-2010. The evolution continued as we established a separate warehouse (not shown above), and eventually moved our combined logistics, customer service, repairs, and IT departments under one roof in a new state-of-the-art facility, as manufacturing took over the entire original building.

“I would say probably in 2006 was a point where we were busting at the seams. We only had suite A&B in the Trademark Street buildings and our volume was continuing to go up. So that’s when we needed a solution, and we needed a quick one. We ended up having our Japanese stepper motor manufacturer set up to build some of our overflow scanner production. Once we had them set up with material, they were up and running within three months after they were selected. So they were doing probably 40% to 50% of the TellerScan TS230 volume at that point. That was from 2006 through 2010.”
 
“In the meantime, we continued to grow, although we had a little setback between 2008 and 2010 during the recession. During that time, we had what I would call a little bit of a reprieve, in that Suite C in our Trademark Street building became available, and we were able to purchase it. So those were our first couple steps of space expansion that gave us about 16,000 square feet of space. But it still wasn’t enough.” 
 
“And when you look at the forecast, the good thing was the actual demand outgrew the forecast, but that also meant we had to react very quickly. And so, leased a new 9,000 square-foot warehouse building. We thought that was going to cover us, but within one year we had to leave that building and lease the 7th Street building, which gave us 25,000 additional square feet. So again, we felt comfortable, everything looked good looking at the long term-forecast, and then we acquired SmartSource from Burroughs.” 
 
“So, then we had to lease a third building … which gave us another 20,000 square feet, but we knew we didn’t want to keep that because that was three buildings with two warehouses and we had basically a triangle of trucks between the various buildings, and it was very inefficient. That’s when we decided to move into the larger warehouse building which we’re in today, which was in 2018, the San Marino building, and that’s been holding us, and should hold us for another five years at least.”
 

‐ Glenn Embury

MILESTONES

Growth in CA Manufacturing:

Following the recession of 2008-2010, there was a substantial surge in our volume. Manufacturing volume nearly doubled from 2010 to 2011 alone.

From 2011 to 2015/2016, we experienced another nearly twofold increase, largely due to the booming popularity of remote deposit capture and our CheXpress CX30 model; and our growth trajectory continues to this day.

Capacity:

Our space remained at 11,000 square feet through 2007. We subsequently expanded our facilities six times to accommodate the increasing demands.

Supply Chain:

Between 2006 and 2010, due to space limitations, we entered into a three-year agreement for contract manufacturing in Japan, resulting in approximately 60,000 scanners built by our Japanese contractor. (We do not count these toward the total of 1.5 million made domestically.) In 2010, we transitioned back to 100% domestic manufacturing. 

In 2008, our procurement efforts expanded to include Vietnam.

The global recession of 2008-2009 led to a semiconductor shortage. Large semiconductor inventories at distributors and manufacturers caused inventory issues during the recession. Distributors changed their planning, leading manufacturers to adopt a build-to-order approach for some components produced every 6-9 months. Missing the ordering window meant facing a 6-9 month lead time. To address this, we negotiated with our PCBA suppliers to maintain safety stock of components, exceeding our forecast and purchase orders, mitigating the impact of this challenge.

In 2014-2015, the ports of Los Angeles and Long Beach experienced a slowdown and strike, affecting our operations during that period.

Employees:

In 2011, our California workforce comprised approximately 85 employees.

By 2012, our employee count increased to 102.

In 2015, we reached our peak employment of that era, with 117 staff members.

2018 ‐ present

Navigating Growth and Adaptation

In the last five years, our company, Digital Check, has kept pace
with the ever-changing market landscape by undergoing our own
significant transformations. Key areas of focus include supplier
partnerships, continued growth in California manufacturing capacity,
floor space expansion, supply chain optimization, employee growth, and
overcoming other diverse challenges.

Supplier Partnerships: Digital Check’s commitment to
robust supplier partnerships has remained unwavering. The company
strategically collaborates with partners, both domestic and
international, ensuring they align with Digital Check’s values of
responsiveness, flexibility, and stability. Regular on-site visits and
safety stock positions at supplier factories contribute to the
efficiency of operations. We resumed in-person visits after the
pandemic and have continued branching out to find new suppliers all
over the world.

Growth in CA Manufacturing: The growth trajectory of
Digital Check’s California manufacturing operations continued from 2018
to present. With a strong foundation laid in previous years, the company
consistently increased its scanner production, adapting to market
demands and technological advancements.

Space Expansion: Recognizing the need for increased
capacity, Digital Check has diligently expanded its operational space.
Leasing a 54KSF building in 2018 marked a substantial growth, reflecting
a 600% increase in space over the last two decades. Strategic
decisions, including closing certain buildings and renewing leases,
showcase Digital Check’s commitment to efficient space utilization.

Supply Chain Optimization: Digital Check’s supply
chain has evolved to mitigate risks and enhance flexibility. A
continuous review of suppliers based on cost, quality, and geopolitical
considerations has been a cornerstone of their strategy.

Employee Growth: The growth in Digital Check’s
employee count is indicative of the company’s expanding operations. With
over 100 employees in California as of now, there has been a
substantial 667% increase since 2002.

Challenges and Adaptations: Digital Check faced and
conquered various challenges, including navigating port strikes,
addressing semiconductor shortages, and responding to the impacts of the
COVID-19 pandemic. The company’s proactive measures, such as
negotiating with PCBA suppliers to carry safety stock, showcase our
ability to adapt swiftly.

Process Optimization: In the pursuit of efficiency
and quality, Digital Check has continuously optimized its processes.
Implementing automation, introducing FMEA, adopting cell-based
manufacturing, and integrating technologies like screw robots underscore
our commitment to streamlined operations.

In conclusion, Digital Check’s journey from 2018 to present highlights a
commitment to innovation, strategic partnerships, and adaptability.
Navigating through challenges and seizing opportunities, our company
positions itself for sustained growth and success in the years to come.