Eleven rules of choosing business management software: Rule 8
Continuing with our list of eleven "rules" to help guide small and medium sized companies when they evaluate potential suppliers of business management software...
Rule 8: Be wary if the system is too simple.
A dealer needs more than just an invoicing system.
A vehicle dealership has precise needs that do not exist in other industries: very specific parts inventory management, the management and tracking of warranty claims, finance plan management, and the treatment of repair orders.
Even marketing tasks are different than in other industries as they must take into account a totally different set of variables.
That is why a specific category of software called Dealer Management Systems (DMS) was created, to address these special requirements.
Of course in theory a dealer can be managed through a standard accounting or financial program. There a great many of these on the market, from small generic invoicing programs generally used by small shops, to expensive and bulky ERP systems used by larger corporations.
But however good an accounting or ERP package is, if the dealer wants to go beyond simple invoicing and bookkeeping and actually improve processes and operations, the need for a true DMS is clear.
As profit margins on vehicle sales continue to decrease around the world, the dealership’s after- sales department gains more and more importance.
A Dealer Management System has powerful, industry-specific tools and functionality to manage and maximize the profitability of the Parts and Service departments.
An accounting package, or even a world-class ERP system, does not.
Similarly, the dealer should be careful regarding the database used by their chosen system.
Small software programs tend to use small databases that are geared towards personal or very small-scale use, and totally inappropriate for a business, especially a vehicle dealership. Even the smallest dealership needs a business-sized database that can handle the appropriate volume of transactions and provide stability, security, and speed.
Posts in this series:
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Rule 1: Make sure the new system can accompany your company’s growth
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Rule 2: Does the system stay up-to-date regarding fiscal compliance?
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Rule 6: Choose a supplier that provides more than just a system
- Rule 9: Discounts can be pyrrhic victories
Tags: Autologica, DMS, ERP, SMB, SMBs, dealer management systems, auto dealer software, automotive, auto industry, automotive industry, auto dealer, auto dealers, car dealer, car dealers, motor vehicle dealer, motor vehicle dealers
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