27
Nov
About Serial Numbers
I don't just assign serial numbers to my products. I create a strategic numbering system. Here's
2 min read
Is your hardware business struggling?
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High BOM cost / COGS
Each unit costs so much to make that there’s almost nothing left when you ship it.
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Lead times are months and always slip
You wire money to factory weeks and months in advance, but you are still not sure when you get the goods
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Stockouts never end
Every time demand picks up, you run out of stock and watch revenue walk away
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Low yields / wasted components
Too many units don’t make it to shipping, so you throw away expensive parts continuously
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Customer returns are insane
You ship the product, then replace it, and then still refund the order — routinely
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You tried fixing, nothing really improved
You’ve tried raising prices, ordering earlier, pushing the factory harder—nothing really changes
This can be fixed.
I am Yury Galtykhin, a fractional COO and consultant for hardware startups.
I fix money leaks in production and supply chain in 90 days.
Book a free Leak Check
What it will look like in 90 days
New batch, new issues, same bad numbers? Not anymore. I fix the core unit economics and operations of your hardware business, not the symptoms.
Unit cost (BOM / COGS)
Now
Each unit costs so much to make that you live off the razor-thin margin.
After 90 days
Unit cost down 15–30% by changing what and how you buy and who you buy from.
Lead times
Now
It takes forever to receive the next batch, and you never know if and for how long it will be delayed, again.
After 90 days
Lead times are shorter by 2–4 weeks and goods arrive within a week of plan by procuring long-lead components early, reprioritizing batches with suppliers, adding buffers, and assembling in smaller lots.
Chronic stockouts
Now
Stockouts are unplanned and often result in overselling and refunds/chargebacks when orders cannot be fulfilled or replacements are unavailable. Cannot even switch to preorders because the lead times are too long and unpredictable.
After 90 days
Stockouts are mostly eliminated by robust demand planning, order pipeline, and safety stock. When stockouts are inevitable, pre-orders are in place to keep sales going and attract working capital for future POs (Purchase Orders).
Low yield, high component waste
Now
Each order ships less units than have been paid for, many expensive components are scrapped during assembly.
After 90 days
Every order ships in exact ordered quantity or above through revised SOPs, tightened incoming quality checks, renegotiated FOC (Free Of Charge) extra components, and suppliers' accountability for losses.
High customer returns
Now
Return rates are high. Most failures are field defects, but you can’t tell which batch, step, or component is at fault.
After 90 days
FDR (Field Defect Rate) is down and returns flatten. Failures tie to specific batches, root causes are identified, fixes are prototyped and built into the next run. The unit-level tracking is in place and shows how each new batch performs.
How it works
If you're a funded hardware teams (Seed to Series A/B) that are already shipping (or close to shipping):
I work with you in three steps, any of the subsequent steps are fully optional.
1
Free Leak Check (1-hour call)
FREE
This is not a sales discovery call.
It is a structured, in-depth diagnostic of your hardware operations.
For one hour, we stay entirely inside your product, numbers, and supply chain. I follow a fixed checklist I use with every founder, so the conversation is focused and dense, not improvised.
What happens on the call
- I ask you a series of short, simple questions covering your hardware ops: BOM/COGS, lead times and logistics, inventory, manufacturing and yields, quality and returns, internal processes, and data
- Expect roughly 30-50 questions, depending on your situation. Most answers are yes/no, rough ranges, or simple phrases like "not many" or "we do not track this yet"
- I take detailed notes. You do not need to share anything you consider sensitive (for example, specific supplier names)
What you get
Within 1 day after the call, you receive a short written report that includes:
- A clear snapshot of the current state of your hardware operations
- 3-5 specific "cash leaks" to fix first, with rough impact on COGS, yield, lead time, or cash tied up in inventory
- A short list of specific next actions you can execute with your team
Commitment
- The Leak Check and report are free of charge. No hidden fees or strings attached.
- No prep beyond a quick refresh of your current situation (simple instructions in the invite email)
- No follow-up required. Receiving the Leak Check report does not imply any obligations
2
5-Day Diagnostic
US$1,500
What I do
- Pull apart your unit cost, lead times, stockouts, failures/returns, and inventory
- Map where money actually disappears in production and supply
- Build a simple model of “fix these levers to get roughly this money back / runway added.”
What you get (deliverables)
- A clear map of:
- Unit cost structure (what drives COGS)
- Lead-time and slip drivers
- Stockout and inventory issues
- Failure/return root causes
- A 90-day action plan: 2–3 workstreams, sequence, owners, and expected dollars back
- A simple spreadsheet / dashboard you can keep and use
Money-back guarantee
100% Money-back if you judge it adds zero value. You keep all outputs either way.
We only start the 90-day work if:
- The diagnostic shows a clear path to at least $9,000 in savings or cash unlocked (a 1x return on my Advisor-Led fee)
- And you want help
Otherwise, you run the 90-day action plan with your team (or you don’t, it’s up to you).
3
90-Day Turnaround (project-based)
US$3-6k/mo
How it works
- You pick the 2–3 top problems (unit cost, lead time, stockouts, yields, returns)
- I fix these problems for you
- I drive the work with your team and suppliers
- I coordinate directly with suppliers/CMs where needed (WeChat/email/calls)
- I make sure the changes are implemented
- Everything is transparent
- 1 working call per week (1 hour, your timezone) + weekly status report
- I provide a simple online tracker so you always see status and impact
Modes & pricing
- Advisor-Led (US$3,000/mo): I design the changes, review, and unblock. Your team implements.
- Hands-On (US$6,000/mo): I drive vendors, quotes, and gating. Your team supports.
- Optional: On-site factory work (Hands-On only), billed separately (US$2,000/week + travel/lodging expenses).
Commitment
- Project length: 90 days (3 months), you can cancel at any time within the first 30 days
- Optional: project extension is available (and has priority over new projects)
What you get
By the end of the 90-day program, you have:
- Key operational bottlenecks have been removed, and unit economics now make sense
- You can clearly see the unit economics via ops data room: simple dashboards and models that show what’s going on
- A cleaner, more reliable supply setup (who you buy from, on what terms, and how it flows)
- Concrete SOPs, spreadsheets, and checklists: a practical playbook you can keep running without me.
Who this is for
Funded hardware teams (Seed–Series A/B) with:
- At least $50k/month in revenue, or at least $1m+ raised
- Real hardware in production or in the production-ready state (supply chain and assembly already exist)
How this offer pays off
The 5-Day Diagnostic finds exact levers to pull, while the 90-Day Turnaround actually pulls these levers.
Even a small improvement turns into thousands and tens of thousands saved every month.
In most cases, the savings or cash unlocked cover my fee in 1-2 months.
Here’s an example of what can be improved for a small business with about 2,000 sales per month at $60 AOV (gross revenue is about $120,000/mo).
Unit cost (BOM/COGS)
Every $5 saved per unit translates into $10,000/mo in extra net profit
$5.00 x 2,000 units/mo = $10,000.00/mo
Stockouts
For example, you miss about 10% of your monthly sales due to chronic stockouts.
It translates into $12,000 in missed sales, and depending on your gross margin, about $4,000 to $6,000 in missed gross profit.
$120,000/mo x 10% = $12,000/mo in missed revenue
$12,000/mo x 35-50% gross margin = $4,200-$6,000/mo gross profit missed
Customer returns
Lowering the customer return rate from 8% to 5% (by 3pp) translates into roughly $4,800/mo increase in net profit:
Every single unit returned costs you $80 (marketing + money returned + shipping, handling, and fees)
$12 (AOVxCAC/LTV) + $60 (MAP) + $8 (shipping & handling) = $80
For 3pp decrease at 2,000 units/mo equals 60 units/mo, or $4,800/mo in net profit increase:
2,000 units/mo x 3% = 60 units/mo
$80 net loss/unit x -60 units/mo = negative $4,800 net loss/mo, or net profit/mo
TOTAL savings
Just pulling only three levers can recover $19,000/mo in profit
$10,000 + $4,200 + $4,800 = $19,000
Even if you only recover 1/3 of this projected amount, it is still at least $6,000/mo in recovered profit, every single month.
$19,000 / 3 = $6,333
If this looks like the numbers your business is missing,
About me
I am Yury Galtykhin, a hardware operator based in Taipei, Taiwan. I am ex-COO at a deeptech hardware startup and a career hardware engineering leader.
Besides founders, I work directly with engineers and factories and speak their language.
This is a solo consulting practice. If we work together, you will be working with me directly.
- Created 0 to 1 award-winning wearables (CES 2020, TIME Best Inventions 2022)
- Built and ran supply chains in APAC (China, Taiwan, Vietnam, and others)
- Taiwan Gold Card (Science & Technology)
- Member, Operators Guild
- US Patent 11,517,081
1. How much of my time (as founder/CEO) will this take each week?
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For the 90-Day Turnaround:
If I drive vendor negotiations (Hands-On), expect about 3–5 hours/week from you: one weekly call plus decisions and reviews
If you want to be in every supplier discussion and every team discussion yourself, it can easily become 10–20+ hours/week (this is more likely in the case of the Adviser-Led option)
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For the 5-Day Diagnostic:
Expect about 1–2 hours/day over 5 days, roughly 8–10 hours total
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For the Leak Check:
It’s a 1-hour call plus up to 1 hour max to refersh your situation prior to it.
You don’t need to build new decks or polish anything: I need to see the real situation, not a staged one. You will receive detailed and simple instructions upon booking confirmation
2. Are we the right size and stage for you to work with us?
This works best if:
- You’re a hardware startup already shipping or about to ship
- You’re Seed to Series B
- You’re doing at least $50k/month+ in sales, or you’ve raised at least $1m+
If you’re still at prototype / pre-seed with minimal funding, it’s a different kind of engagement.
In that case, email me at yury.galtykhin@gmail.com and we’ll see if/how I can help.
3. What do you actually need from us before starting the 5-Day Diagnostic (data, access, tools)?
First, we do a Leak Check to confirm the problem is really operations and not something else. It’s free and non-committal. I only suggest the 5-Day Diagnostic if ops are clearly a major lever.
For the 5-Day Diagnostic, I typically need:
- Your current BOM(s) and landed cost per SKU (factory price + freight + duties, if you have it)
- A list of your SKUs and basic sales numbers by SKU
- Recent PO and shipment history (quantities, dates, promised vs actual)
- Basic inventory/stockout history (where you ran out, for how long)
- Return/failure rates and the main reasons, if tracked
- Rough P&L or unit economics view (price, COGS, major cost buckets)
Google Sheets, ERP exports, and messy spreadsheets are fine. I don’t need a perfect system. I need access to what you already have.
4. We already have an ops person/COO. Do you replace them or work alongside them?
I work with your existing team, not against them.
I don’t replace your ops person or COO. My job is to:
- Bring a structured view of the problems
- Help your team execute and unblock
- Leave them with a system they can run without me
After 90 days, they should be stronger, not sidelined.
5. Do you work with our existing factories and suppliers, or do you try to switch us to your own?
Default is: we work with your existing factories and suppliers and try to fix the situation there.
I only suggest switching a supplier if there is a serious, structural issue (chronic quality failures, can’t meet your volume, won’t change obviously broken processes, etc.). Even then:
- I recommend, you decide
- I don’t “switch” anyone behind your back
- I don’t force you onto “my” suppliers or take commissions
I do know good factories and partners across Asia, and I can introduce them if it makes sense, but it’s always your call.
6. We manufacture in [Canada/Mexico/India/Europe/US]. Is that still in your territory?
Yes.
I can work with factories in any region as long as we can communicate in English (directly or via your team). Time zones and geography are not blockers.
7. What happens if the 5-Day Diagnostic doesn’t show a clear, positive ROI path?
Then we stop there.
You still get:
- The full diagnostic findings,
- The 90-day action plan, and
- The models we built from your data.
If it’s clear that operations aren’t your main lever right now, I won’t push you into a 90-day engagement. The point of the diagnostic is to decide if it makes financial sense to keep going, not to force a follow-on project.
If you feel the diagnostic added no value at all, I’ll refund the fee. You keep the work either way.
8. What kind of sensitive information will you need to see (BOMs, pricing, contracts, P&L), and how do you handle NDAs?
For paid work, my standard service agreement includes a confidentiality clause (mutual NDA).
If you need an NDA before the Leak Check, tell me:
- I can sign your NDA, or
- I can send my standard mutual NDA
In terms of content, I usually need to see:
- BOMs and factory pricing
- Key supplier/factory quotes and terms
- Recent POs and shipment history
- Returns/failure data and major reasons
- Freight and duties invoices
- High-level P&L/unit economics to understand margin and runway impact
I use standard tools (Google Sheets, Google Docs, etc.). I don’t share your data with anyone outside your team.
9. What if our data is a mess or spread across spreadsheets, ERP, and email—can we still start?
Yes. That’s normal.
I expect:
- Spreadsheets
- Exports from ERP
- Numbers sitting in email and notebooks
Part of the job is to untangle the mess and turn it into a simple, repeatable view of your operations. You don’t need to clean everything up before we start.
10. What is the practical difference between the Advisor-Led and the Hands-On options?
Advisor-Led:
Best if you already have an ops person or PM who can drive work once it’s clear
- I design the changes, build the models, and tell you how to implement and in what order
- Your team owns execution: talking to factories, sending POs, changing processes
- I join your Slack, I work with your team, you and I have a weekly working call, and I review and unblock
Hands-On
Best if you don’t have real ops capacity, or you’re in a crunch and need someone to own the day-to-day
- I design the changes and drive a big part of the execution
- I talk directly to your factories and suppliers, chase quotes and dates, and keep a detailed tracker
- Your team approves decisions and handles internal changes, I push the work forward with vendors
In short:
- Advisor-Led = your team drives, I steer
- Hands-On = I drive, your team approves and supports
11. What happens after the 90-Day Turnaround: do you stay involved, or is it truly a hand-off?
The default is a hand-off.
By the end of 90 days, you should have:
- Fixed core issues we agreed on, and
- A simple playbook and dashboards your team can keep running
Some teams ask for ongoing light support (monthly check-ins, help with new problems). That’s optional and scoped separately. There is no automatic retainer.
12. Do you ever work for equity or success fees instead of (or in addition to) cash?
Not for this program.
The 5-Day Diagnostic and 90-Day Turnaround are cash-only.
If you want to explore equity, success fees, or a different structure, we can discuss that after this program, once we’ve worked together.
13. What if we’re in the middle of a launch or a fire right now—should we wait or start anyway?
If you’re in a real fire, that’s usually why you should start.
You can:
- Use the 5-Day Diagnostic to get a clear picture of what’s actually breaking, and
- Prioritize short-term stabilizing moves in the first weeks of the 90-day work
Waiting usually means burning more cash on the same problems. We just need to be clear on the scope so we don’t overload your team.
14. How soon can I see the results of the 90-Day program? Does it take that long?
Hardware is slow by nature, but not everything takes 90 days.
Typical pattern:
- Weeks 1-4: Fast changes like renegotiating prices and terms, adjusting PO logic, and tightening test/QA can start to show impact
- By Day 90: You should see clear movement in unit cost, lead times, stockouts, and/or returns, depending on what you choose to focus on
You won’t wait three full months to see if anything works, but some deeper changes do take the full 90 days to land.