Automobile Dealer Magazine

Computer Utilization: Are You Using Your System to it's Full Potential?

by Sandy Jerome

Most dealerships only use 30-40% of their computer system. Why are these expensive systems so underutilized? The biggest reason is training.

Recently, computer companies have started training dealership employees at the dealership during the installation. This is a difficult place for an employee to learn the system - they are interrupted during the training by customers, phone calls, and other employees. It is also often a difficult time - the system is still being installed and might not be working properly.

The second reason for underutilization is turnover. A dealer will send a controller or parts manager to school for the current system, then hire someone new who was on another system. Since the computer system is usually the most expensive equipment a dealership owns and has highest monthly maintenance cost, a commitment must be made to obtain better utilization.

Does your dealership fully utilize its computer system? Take this test - and compare it to the scores below. Give yourself 1 point for each "yes" answer.

COMPUTER UTILIZATION TEST
Does your dealership:
_____ Reconcile the bank statement with the computer or a PC (no handwritten outstanding checks)?
_____ Pay the technicians from a computer-generated report or direct payroll download?
_____ Post all the car deals without completing a billing invoice directly on the screen?
_____ Pay the salespeople without writing commission vouchers or summary sheets?
_____ Send customers computer-generated "Thank you" letters and service reminders?
_____ Give salespeople mail labels for their customers if they want to send out promotions?
_____ Purify all rebate and incentive programs to a computer-generated sales report?
_____ Look for who bought a vehicle on the computer and not on washout sheets or a stock book and search for which vehicles are in inventory on the computer (no stock cards)?
_____ Give a DOC report daily to each department manager, and the number of vehicles that F&I shows sold is on the DOC?
_____ Review the parts management report and reconcile it to the GL each month?
_____ Total (10 Maximum)

Scores:
9 and over You have excellent computer utilization!
6 - 8 Your computer utilization is above average and you have only a few areas to conquer to achieve perfection.
4 - 5 You have average computer utilization and could probably use some fine tuning to get the most of your computer.
Less than 4 You are under-utilizing your computer and need to start a customization and training program for your system.
Sandy Jerome is manager of the computer consulting department of Jeff Sacks & Associates.