Reynolds and Reynolds Announces Agreement with Servigistics to Deliver Service Parts Networking

Solution to help car manufacturers and retailers regain up to 50% of their lost service revenue

DAYTON, Ohio and ATLANTA, Nov. 17 -- The Reynolds and Reynolds Company and Servigistics today announced an agreement to deliver Service Parts Networking, a new, Web-based service parts management solution.

The new solution will enable automotive Original Equipment Manufacturers (OEM) and automotive retailers to better collaborate and automate service parts operations.

Under the agreement, Reynolds will leverage the Servigistics Service Parts Management Platform to offer a solution that will reduce inventory cost, increase service revenue and improve customer service levels by streamlining the complex service parts network in automotive and adjacent markets. Reynolds will market the solution not only to automobile manufacturers but to OEMs in the power sports, marine, recreational vehicle and commercial vehicle industries.

"Every automotive service visit is an opportunity for the OEM and retailer to demonstrate outstanding service and the availability of the parts that the consumer needs," said Alan Chakra, vice president of OEM Solutions for Reynolds. "Alternatively, this opportunity becomes a risk if the retailer fails to have the right part needed to service a consumer's car. In this case, the consumer typically takes the car elsewhere for the repair, thus causing the retailer to lose service revenue and an opportunity to enhance customer loyalty.

"To minimize this risk, Reynolds has teamed up with Servigistics to deliver an innovative solution that will enable dealers and OEMs to significantly increase service parts fill rates while reducing inventory and driving customer loyalty to new levels," Chakra said.

Chakra said that service parts can drive up to 10 percent of OEM revenues and 30 percent of profits. At the average dealership, parts and service accounts for 12 percent of the revenue and 48 percent of profits.

"Improving parts availability is consequently a win/win for the OEM, the dealer and most importantly, the consumer," Chakra said.

Eric Hinkle, Servigistics CEO, said, "Both Servigistics and Reynolds share a common vision and strong commitment to deliver significant value to clients by improving service parts effectiveness and efficiencies. Reynolds provides unparalleled domain expertise, broad solutions, and data services in the automotive industry, and brings a track record of providing connectivity between the OEMs and dealer networks. The combined solution of Reynolds and Servigistics will quickly deliver value and high returns to the automotive network."

Bryan Klugh, vice president of Fixed Operations for Subaru of New England, said, "As a user of both the Reynolds' dealer management systems and the Servigistics service parts management solution, I view this agreement as a natural fit. The combination of both companies' strengths will rapidly deliver significant value to both OEMs and dealers. By combining Reynolds and Reynolds' extensive automotive experience and connectivity to dealers and OEMs with Servigistics' leading Service Parts Management Platform; Service Parts Networking will revolutionize the automotive service industry by enabling significant increases in point-of-sale customer service levels and loyalty while reducing inventory."

About Servigistics

Servigistics is the preferred provider of global service parts management solutions, and enables companies to dramatically reduce cost, increase profitability, and drive customer loyalty to new levels. Servigistics solutions have been deployed and proven in the Americas, Asia, and Europe by such global leaders as Agfa, Akibia, Avaya, Axcelis, Credence, Cray, Dell, EMC, IKON Office Solutions, Infocus, PartsNow!, Patterson Dental, Subaru, Toshiba Medical Systems, UPS, and others. Servigistics clients are 100% referenceable. Servigistics is a privately held company headquartered in Atlanta with offices in London and throughout the United States. Contact Servigistics at 888-942-8623 or 770-565-2340, via e-mail at info@servigistics.com or at www.servigistics.com .

About Reynolds and Reynolds

Reynolds and Reynolds ( www.reyrey.com ) is the leading provider of integrated solutions that help automotive retailers manage change and improve their profitability. Serving the automotive retailing industry since 1927, Reynolds enables OEMs and retailers to work together to build the lifetime value of their customers. The company's award-winning product, service and training solutions include a full range of retail and enterprise management systems, Web and Customer Relationship Management solutions, learning and consulting services, documents, data management and integration, networking and support and leasing services. Reynolds serves more than 20,000 customers. They comprise nearly 90 percent of the automotive retailers and virtually all OEMs doing business in North America. The Reynolds International Division serves automotive retailers and OEMs through Incadea AG and its partner network as well as a worldwide consulting practice.