Dealership Management Software Headaches, Impacts & Remedies

Dealerships today, particularly those specializing in heavy dealer equipment, face numerous challenges, many of which stem from outdated management software and manual processes. 

In this blog, we explore common inefficiencies and their impacts on productivity and operational decision-making, using examples from field services, build services, and inventory management. We also examine the importance of adopting modern, integrated solutions.

Overview of Typical Outdated Dealership Management Systems

Spreadsheets and manual processes have worked in the past, but today's problems require dynamic solutions. Visibility and agility are difficult to maintain when using legacy processes and systems.

Additionally, customer needs and expectations have changed, and your business should adapt as well.

Here are some reasons you may be lagging behind:

• You use manual techniques for important functions.
• You have a patchwork of incompatible systems.
• You evaluate data after something goes wrong; you aren't proactive enough.
• Reports take too much time and effort.

Relying on older methods is not only tedious but is also error-prone. It's time to modernize your business with the Advectus cloud-based dealer management system and NetSuite, the world's #1 cloud ERP.

Click here for a PDF about this powerful combo! 

Examples of DMS Inefficiencies and Their Consequences

Field Services

Field services are vital for dealers to maintain customer satisfaction and operational efficiency.

A common example involves parts availability for technicians in a vehicle repair scenario. Technicians need to access the central database to see stock levels, location, and other key details. This helps diagnose issues, communicate with relevant colleagues, and order appropriate parts to get the vehicle back in operation.

If the technician cannot order the parts quickly, the customer's vehicle will be down longer. This could lead to losing that customer.

Without real-time tracking and communication tools, field service teams can run into delays and experience miscommunication. Inefficient scheduling and dispatching processes can turn logistics into a nightmare, resulting in underutilized resources and increased operational costs.

Consequences:

• Delays in service delivery.
• Increased operational costs due to poor resource utilization.
• Lower customer satisfaction because of inconsistent service quality.
• Possibly losing customers.

Build Services

The process of managing build projects from planning to execution is riddled with inefficiencies when using outdated systems. Dealers can encounter many different project delays, such as back-ordered materials, inclement weather, failed safety and site inspections, and more.

Fragmented systems further compound delays and other issues. This complicates project progress tracking, resource management, and budget management. The result? More delays, cost overruns, and a lack of effective collaboration.

Consequences:

• Missed deadlines and extended project timelines.
• Budget overruns due to poor resource management.
• Ineffective collaboration and communication among departments.

Inventory Management

Inventory management is another area where outdated systems cause significant issues.

Inaccurate stock levels lead to overstocking or stockouts, while manual inventory processes are prone to errors. The lack of data visibility makes demand forecasting challenging, further complicating inventory optimization.

Consequences:

• Overstocking or stockouts, leading to lost sales or excess inventory costs.
• Errors in order fulfillment can impacting customer satisfaction.
• Difficulty with accurate demand forecasting can lead to poor inventory planning.

The Remedy: Modern, Integrated Dealer Management Systems

Outdated dealership systems create more problems than they solve—wasting time, limiting visibility, and making it harder to scale. Advectus, and NetSuite, is the modern cloud-based solution designed to keep your dealership ahead of the curve.

• Streamline operations with an all-in-one platform for sales, service, parts, and finance.
• Gain real-time visibility into every aspect of your dealership for smarter decision-making.
• Eliminate inefficiencies with seamless integrations and automated workflows.
• Future-proof your business with a scalable, cloud-based DMS.