Is your dealership considering a DMS switch? There are lots of great reasons to seek out a better fit with your DMS. Better overall performance, clearer inventory reporting, improved support, and more service management tools are just a few of many reasons to find a better match. That being said, making a DMS change is no small feat and it affects your entire dealership – all at the same time. Because it’s such an ordeal, you’ll want to be sure you find a system with a proven track record so you don’t need to make another change anytime soon. Here are four important considerations when deciding if your dealership should make a DMS change.
True cost and adequate support
Pricing out a DMS change can’t just account for the cost of the new system and any startup fees, it must also consider the cost of lost productivity as your entire staff adapts to the new system. We’ve found changing your DMS can cost as much as $5,000 per employee in delays and training time during the transition. While this cost is well worth the outcome if your new system elevates your operation in the long run, in the short term, it can be a big challenge for the entire dealership. When deciding if now is the time for the big shift, be sure to consider the health of your entire dealership and plan for the inevitable kinks in the transition process.
Considering the value
Every DMS provider will tell you their system is the best, but just because a system has lots of features doesn’t mean it’s easy to use. Think about your current DMS: was there something your provider promised that turned out to be less than acceptable? It may be the case that your current system has all the same features, but you’ve simply never had the time to learn how to implement them. When deciding which DMS is right for you, before to allot ample time for demoing each system. If possible, have each department spend a dedicated time on sampling new systems. Getting buy-in from each department will help in the transition and give you great feedback on which systems truly work the best for your dealership.
Making Parts Inventory management a priority
In our experience, many DMS tend to focus more on finance, sales, service, and accounting, while putting parts inventory management advancements on the back-burner. When evaluating if a change is right for you, it’s important to keep in mind that Parts and Service, on average, accounts for 49.6% of the average dealership’s gross profits. If the system doesn’t have the ability to generate clear, accurate reports and allow you to regulate your inventory levels clearly and easily, it’s simply not worth the cost.
Planning out the migration
Because DMS changes are everything all at once, it’s important to ensure your dealership currently has the time, support, and consistency to take the time needed for a successful migration. Planning ahead and dedicating time to the shift can save you countless headaches and hiccups and result in proactive and prepared usage of the DMS instead of a reactive survival mode learning period. Once you make the switch, you’ll want to run an audit to make sure all your data has been migrated successfully and ensure employees have the tools, training, and support to use the new system to its full potential.
If you’ve evaluated the costs and decided to make a change, congrats! We’ve seen crucial data missing after a DMS migration process, forcing some dealerships to operate for years without important historical information for everyday decisions. PartsEdge can help you make a smooth DMS migration and ensure all parts inventory settings, controls, and pricing matrix’s are properly set up and audited daily.
Our clients see an average 20% drop in total inventory, 15% less idle inventory, a 50% increase in ROI, and a 20% increase in parts sales. If you’re ready to put our parts power-tool to work, send us a message! We’ve been helping dealerships for over 20 years and our testimonials speak for themselves.