ADP Dealer Services' ProfitPoint Group Launches New Parts Management Solutions; Parts Retainer Program Unbundled to Offer 20 New Modules
CHICAGO--Feb. 1, 2003--ADP's ProfitPoint Group today unveiled new solutions to assist dealers in managing their parts operations. The new solutions expand upon its highly successful parts retainer program developed by Mike Nicholes, Inc. (MNI), an industry leader in parts management solutions, and a member of the ProfitPoint Group. Creating highly focused modules that allow dealers to focus on those areas of specific concern to their dealership, the solutions help them sell more parts and service."No two parts operations are alike," said Mark Martincic, general manager of fixed operations solutions for ADP's ProfitPoint Group. "While our Parts Retainer Program has helped thousands of dealers improve their profitability over the past 30 years, we chose not to rest on our laurels. We understand that some dealers perform well with an overall operations approach, whereas others prefer to tackle specific items one at a time. Our new modular approach provides the solutions that will address both these business styles."
To allow dealers to customize their individual programs, the Parts Retainer Program was unbundled to offer 20 new modules in addition to the packaged program, which covers all aspects of parts operations. These modules include:
1) Standard Inventory Management
2) Advanced Inventory Management
3) Business Management for Parts Operations
4) Parts Sales Management
5) Parts Personnel Management
6) Factory Utilization and Organization
7) Security Management
8) Profit Improvement
9) Parts Inventory Reconciliation
10) Perpetual Inventory
11) Shipping and Receiving
12) Pay Plan/Job Description Development
13) DMS System Utilization
14) Special Order Process Improvement
15) CSI Parts Improvement
16) Document Flow and Control
17) Off Site Analysis
18) In-Dealership Needs Analysis
19) Benchmarking Analysis
20) Best Practices Review
"Some dealers struggle with obsolescence while others face high personnel turnover or other parts management issues. Still others simply know that things could be better, but do not know where to begin," said Martincic. "As always, the parts solutions were designed against a set of metrics established by ProfitPoint Group to measure parts operations and improve profitability and efficiency within the dealership."
Some of the metrics for which ProfitPoint Group establishes goals and measures for effective parts management include:
| -- | Stocking--Analysis and plan to improve the mix of stocking/selling parts in inventory. |
| -- | Level of Service--Improve ability to properly service customers. |
| -- | Fill Rate to the Shop--Reduce emergency purchases and special orders to have the right part at the right time. |
| -- | Frozen Capital--Reduce current obsolescence and minimize future buildup. |
| -- | True Turn--Assessment of your true turn over and steps to get to the right level for your type operation and days supply target. |
| -- | Productivity--Processes and measurements to ramp output for both your parts department and service technicians. |
| -- | Profitability--Minimize department expenses and maximize parts and service sales opportunities. |
At least one customer can attest to the impact the right processes and performance metrics can have on the business. Cowles Nissan in Woodbridge, Va., experienced significant improvement in their parts operations. Results included increasing the breadth of inventory by 29%, reducing special orders on hand more than 23% and increasing fill-rates by more than 19%.
"In addition to the benefits we experienced in improving our parts operations (using ADP's Parts Retainer Program), we gained so much more, said Kevin Runey, general manager of Cowles Nissan. "Over the past year, I've learned more about our business than I knew from working here for the past ten years. Using their principles as a learning tool, I moved up from sales to a general management position."
To sell parts profitability, it is essential that dealers are properly equipped with solutions that are tailored to their specific needs. The new unbundled Parts Retainer Program allows dealers to customize their operations to ensure they are maximizing the profit potential of their parts and service.
About ProfitPoint Group
ADP's ProfitPoint Group provides business performance improvement solutions to the automotive marketplace in the areas of Front-End and CRM; Business Management and Analysis; Service and Body Shop; Parts; and Customized Programming. More information on the ProfitPoint Group is available on the Internet at http://www.adpppg.com. They can be reached toll-free at 866-218-6422 or via e-mail at sales@adpppg.com.
About ADP Dealer Services
ADP Dealer Services provides integrated computing solutions to more than 16,000 automotive and truck dealers throughout the United States, Canada and Europe. ADP Dealer Services Group is the third largest business unit of Automatic Data Processing, Inc. . ADP, with $7 billion in revenues and more than 500,000 clients, is one of the largest independent computing services firms in the world. More information on ADP Dealer Services is available on the Internet at http://www.dealersuite.com.