A wise man once said, “show me your inventory, and I will show you how successful you will be.” Well, he didn’t say it like that, but inventory management is often overlooked by business leaders despite it directly impacting the sales operations for your business. And solving this problem is crucial for any business – irrespective of the industry they operate in, but in the automotive industry, outdated inventory management could make stock aging a serious problem for the business owner. Though there have been different solutions for stock aging, most of them usually involving creative marketing and sales strategies, a Dealer Management System is the ideal solution for automotive businesses to solve such compelling problems in the digital age.
There are several readily available DMS solutions in the market. While they can solve a part of the problem, the benefits of a custom dealer management system simply outweigh the readymade ones available in the market. A custom DMS makes the process of extracting real-time insights from their business operations much easier. With increasing digital sophistication among such business tools, automotive businesses can do a lot more with it.
For instance, it can automate tasks that allow them to concentrate their critical resources in more pressing areas. It sets the stage for greater data engineering allowing business owners to accelerate their decision-making process. And most importantly, all these features can be accessed by employees and business owners with basic familiarity with the digital medium.
So, it’s obvious as to the huge demand for custom dealer management solutions and automotive software solutions in the marketplace.
How does a Dealer Management System help you optimize your inventory management and prevent stock aging?
- Track and analyze the movement of stock
- Optimize stock matrix
- Identifies inefficient links in the supply chain
- Better customer service
- Solves disparity in the inventory
- Helps you regulate stock and sales flow
- Better inventory transparency
Track and analyze the movement of stock
A DMS leverages the digital platform to help you keep track of how much product you have on hand at any given time and when it should be replenished or sold out. This can help you make decisions about which products need more attention, as well as when they should be replenished or sold out (if at all).
The best way to improve your business is by analyzing data, and that’s especially true for an automobile business that heavily relies on inventory. By using an efficient dealer management system (DMS), you can easily identify inventory laggards, which will help you take action quickly and efficiently. As data is the core part of a business’s digital strategy, leveraging analytics has become the new reality for any business, as it allows them to arrive at decisions much more efficiently. And inventories can become really complex when you do it the old-fashioned way. In such scenarios, an efficient Dealer Management System simply elevates your business’ ability to solve such complex problems.
Optimize stock matrix
Setting up a regular stock reorder schedule is important for airtight inventory management. With technologies like Artificial Intelligence and Machine Learning, we can train models that learn to identify the gaps in your inventory, and can make the decision to restock before it hits the critical level. Such models are being increasingly deployed in the automotive industry, and a dynamic Dealer Management System can easily integrate these models and help you prevent stock aging and stock gaps. If you don’t have enough to meet demand, customers will switch to another retailer that does have more products available.
If you make changes in your inventory levels and end up with too much or too little product on hand at any given time, it can be difficult for customers to find what they need when they want it—and this can lead them away from buying from your store altogether. So even though it might seem like an extra step on top of what’s already happening behind the scenes (that is: just managing inventory), setting up an effective reorder process is essential for keeping sales flowing smoothly through all seasons!
Help improve sales by increasing stock availability and transparency of inventory composition.
Identifies inefficient links in the supply chain
A dealer management system (DMS) can help with these problems, as it provides an integrated view of the entire supply chain and allows dealers to better manage their inventory levels.
The first problem is high logistics costs due to inefficient distribution networks. The second issue is that dealers often lack adequate technology resources, so they have difficulty implementing this type of solution on their own.
A DMS makes it easy for dealerships to implement a more efficient supply chain by collecting data from all touchpoints involved in the process – e-commerce sites; third-party logistics providers; suppliers; manufacturers; or even themselves!
Better customer service
The automotive industry is a highly competitive market, and it’s difficult for dealerships to compete against each other. In order to stay competitive, dealerships need customer service that is outstanding and reliable. However, many dealerships struggle with providing good customer service because they don’t have the right tools in place to handle the job properly. For example, a DMS can help dealerships increase customer satisfaction by increasing their response time (and therefore reducing complaints). An efficient Dealer Management System will enable seamless communication between various channels within the business; this will help with the company’s greater digital vision, allowing seamless information flow across various departments.
Solves disparity in stock availability
Stock availability is a key factor in customer satisfaction. The more items you have in stock, the better off your business will be. It’s important because it’s a measure of how well your business meets customer demand and therefore affects profits directly.
If there are too many cars on the lot and not enough money coming in from sales, then dealerships may have trouble making enough profit to stay open. If they do close down, customers will lose access to those products they were looking forward to buying at that moment—something that could potentially cause them great distress.
The point is, customer behavior is almost always complex. To dissect this complex customer behavior, and extract actionable insights, automobile companies have previously (and many still) relied on intuition. This opens up their business model to market risks, making their business less resilient. But with increased analytics and data visualization technologies, automotive companies can easily navigate through complex sets of data, ultimately improving the speed and quality of the decisions they make.
Better inventory transparency
Inventory management is a key element of any dealership’s operation. It is also one of the most important factors that determine your ability to grow and remain competitive in the market. However, inventory management is not an easy task as it requires time and resources to be done properly.
The role of a good dealer management system is to maintain and manage your inventory efficiently by tracking all items on the dealer floor as well as managing deliveries made by vendors or suppliers. With this information at hand, you will be able to make better decisions about how much product needs to be stocked at any given time so that there are always enough products on hand for customers when they come in looking for something specific such as tires or brakes replacements, etc.
This way, you can avoid any unnecessary delays at the parts counter which could mean lost sales. As a result, your dealership will be able to expand its operations without having to increase the number of employees in order to handle additional products and services.
As one of the leading automotive IT solutions providers in the market, we reimagine the very fabric of mobility itself. Our goal is to empower automotive businesses and manufacturers to leverage the digital medium and deliver impactful, efficient, and sustainable solutions to the world.