When it comes to dealership software systems, be wary of slick promises of a comprehensive “out of the box” solution that solves all of your problems. It’s not quite that easy
ANYONE WHO IMPLEMENTS a Dealer Management System (DMS) sets out to make a dealership’s operations as efficient as possible. The DMS providers are all adapting their products constantly to try to meet every imaginable business need.
But some dealers we spoke with say they are still are having to stitch together a few systems to really get what they need.
This need for flexibility is important, particularly for smaller dealerships that might not have all the IT and other resources available at larger dealership groups or stores to manage all the tools and training required for a mega-system.
But being smaller can also mean it’s easier for a dealership to adapt to a system so it’s customized for the way their dealership operates.
“Their needs are generally more simplistic,” says Lynn McNeill, senior vice-president at PBS Systems Inc., a Calgary-based provider of dealer software.
“Sometimes they expect their staff and managers to do more, but they have the same level of mandate for a level of reporting [to the OEM]. The larger stores often have certain processes, consistency in the way the customer is greeted, and the smaller stores don’t always have the resources to deploy them.”
McNeill says the differences are significant enough that the training requirements need to be more tailored to how smaller businesses operates. The multiple hats worn by many a manager is a consideration.
“They may not be able to prepare and plan as well,” says McNeill. “We give them and their staff a different kind of training compared to a larger environment, where they may have a dedicated individual who makes sure everything happens properly for the implantation.”
The challenges of a smaller operation can mean challenges for their provider as well, and McNeill says a good DMS provider will set up software to meet their requirements as best as they can. “We analyze the business, what’s going to work well, and we use our experience to say, ‘Let’s do it this way’,” he says.
Software providers have to be able to respond faster because the dealership might only have one manager, maybe two service writers and eight technicians who all have a lot to get done, and might not have someone looking after warranty work.
A DMS provider who adapts to the needs of the dealership is ideal, but when it doesn’t work, sometimes managers just have to do what’s necessary to get the job done.
“Originally when we went with [our chosen provider], their pitch was that they could tailor it to suit our needs,” says John Lawlor, General Manager at C&C Motors, a Subaru dealer in Whitby, Ont.
He has found, however, that they’ve had to add another system to help manage some aspects of the sales functions.
The company sells 900 new vehicles and about 250 pre-owned a year — and his 20,000-sq.ft. store doesn’t have the roster of employees some of the bigger enterprises enjoy.
“I’ve been in the car business for 30 years, and when we built a car at Ford, we built it right up to the rear defroster,” he says. With Subaru (and Suzuki when the dealership carried both lines in the past), they build on model code. “You punch it in and it populates based on what it comes with. A Forester is a Forester.”
He says he knew having the DMS doing everything it needed to on the sales floor would be challenging, especially tying in to F&I and accounting systems. “We ended up having to buy another system for quoting.”
The original system works well for their accounting needs, so the dual systems end up doing the job required.
They use one system right up until they sell the car and then the other system takes over. The two systems do integrate to a certain extent, but they haven’t found it that necessary.
One key advantage of their sales focused program is that it populates with all OEM incentives, prices, trades and everything else his sales staff needs at their fingertips. “I can have a payment price in literally 10 seconds,” says Lawlor.
The other system required loading that information in manually, and not all the details were captured.
It’s a good cautionary tale to do ample research ahead of time, to really investigate whether the system does what you’ll need it to, and to have input from the key players.
It’s also important to ensure that during a software selection process you have input from not only the dealer principal but also from all the departments affected by the software.
It’s a frustration that’s common for the end-users of the software systems, and a pitfall to be avoided, particularly if you want to get employee buy-in to start using all the tools these new software systems offer.
Dave Sambrook, vice-president of Operations at Pfaff Automotive Partners, whose two Porsche showrooms comprise 50,000 sq. ft. combined and employ 93 people, says they’ve encountered similar problems, and also use two separate systems — one for sales and one for the main DMS for their other departments.
“Our sales department uses [one provider] for a quoting tool, inventory locator, sales history provider, customer database, various sales reports, follow-up, CRM, credit application submission and approval,” he says.
“It’s also used by the service department for reminders and followup thank-you emails, but service and parts use another provider primarily to write work orders, keep their customer database and maintain service histories. Upsell opportunities on the sales side come from the ability to select various options when quoting.”
Many software providers offer a la carte services from which clients can choose the features and functions they require.
“If I go into an urban store that’s got 25 technicians, they need a system that puts the right tech on the right job. A smaller operation doesn’t need the same level of sophistication,” says McNeill.
“You need more flexibility when you’ve got one person doing five tasks,” he notes. “We’re trying to make more information available to more people so they can work with their customers better. It’s helpful for the sales person to know the client had a service appointment last week, or that they bought their last two cars there.”
Change is never easy, and making full use of the right DMS takes focus. Getting the right system is part of the battle.
