Thinking about choosing a new Dealer Management System? That's an important decision with a lot of impact! Here are 5 things to think about carefully before coming to a decision.
1. What are the costs (all costs!)?
When you think of the cost of a new Dealer Management System, you quickly think of the software licenses, the project and any maintenance and support costs. But that's by no means all! Also consider the costs of any follow-up projects, the time your employees spend on the project (and thus not on daily business) and the learning curve all users will go through when working with the new software. Direct costs are often easy to identify and quantify, but indirect costs should also be factored in.
2. What are the benefits of the new system?
Much more fun, but also much more important, are the benefits of the new system. And try to quantify those benefits as much as possible.
A few examples:
- 40% lower warehouse costs through greater control over item flows;
- 15% increase productivity of service technicians through better automation;
- 5% increase utilization of rental fleet through better planning;
- 10% more sales from existing customers by being able to act faster.
Even with conservative estimates of the benefits, you will find that the payback period for new software is short and investing is a good choice.
"Much more fun, but also much more important, are the benefits of the new system. And try to quantify those benefits as much as possible."
3. What features of my current system will I miss?
With a new system, you want to improve on it. However, it is unrealistic to think that EVERYTHING you can do now can be done in the new system. Some options are gone or replaced or the processes have changed. That one handy keyboard shortcut may no longer be there. Or perhaps you go for a step-by-step implementation where after going live you only have the most important functionalities. Only in follow-up projects will you implement the remaining things. In that case, you will miss some more after going live. Not a big deal, but something to keep in mind.
4. What new features will I have access to?
A lot has changed since the implementation of the previous DMS. Your business has evolved, the industry, your customers and suppliers, and certainly the software. That offers new opportunities! And these are also the very things your employees get excited about. For a successful implementation it is crucial that there is support within the organization. Through new solutions, modules, features and functionalities, employees realize that the DMS will bring them a lot of personal benefits.
5. How will I implement the new DMS?
Something that is often thought about too easily is the implementation of new Dealer Management Software. It is not something you just do on the side. Such a project often takes months and requires a large part of the time of several (key) employees. Among other things, to shape the processes, to test the software, convert data, train other users and put documentation in order. Therefore, prepare the project schedule carefully and ensure that employees have the time and opportunity to implement the new system.
