The current crop of Dealer Management Systems (DMS) mostly provides process management tools rather than business improvement tools. This appears to be the continuation of the evolution of systems from the service bureau days when computers were overly expensive and out of reach for most dealers.
The system would put the image of the “old” paper forms on the screen and the dealer personnel would fill in the blanks. This was an incredible cash machine for the companies providing these services.
Today we seem to finesse the issues with “portals;” an interesting approach to say the least.
When the customer knows the part numbers they want and are calling in for parts they have two basic questions on their mind; Have you got it? How much is it? Yet typically the DMS starts with the question – “who are you?” Have you got your customer number of give me your name is where we have to start into the parts process and it is the same for the other departmental order and inquiry processes. Not a particularly good way to start a customer service process is it?
With the ease of program development today and the needs of the dealership; with the “size” of the current crop of DMS offerings in machine usage and process time; with the customer opportunities of doing their own ordering increasing I think it is time a “radical” rethink takes place at both the service providers and at the dealer/manufacturer level. What is it we need and want from technology? Do we want to continue to do what we have always done or do we want to step out into the sunshine.
The time is now.
Marketing Missiles 2.1
In the Construction Equipment market the parts and service groups have very low market capture rates.
I don’t think that any customer service provider is aiming to have less than a 50% or even less than a 25% market capture rate. Yet that is where the parts and service departments are in these critical measures. The employees care about the service they provide to their customers. Yet obviously there have been events that have caused many customers to find solutions to their needs elsewhere.
I am convinced that part of this is created by the lack of market coverage that is provided to customers.
How do you rate on market coverage? Are you engaged with ALL customers every year? Do you know your defection rate? Do you know your market capture rates? These are important questions with serious answer from which you can make the necessary business decisions. In this case ignorance is not anything like bliss.
The time is now.
Warehousing
The prevalent thinking is that a warehouse is strictly a store room. How wrong can we be?
I remember visiting a consumer goods distribution center in Chicago and watching in awe. The order pickers were given a days work when they arrived and told they could leave when they had finished. There was another visit to a Kodak plant in Stuttgart, Germany which went with no emplyoees at all. No lights on unless someone went into teh building. Finally a tool distribution center with a 30 meter high facility. One of the storage aisles had been out of commission for months until they discovered that there was a deflection on the mast which for safety reasons disabled the motion motors.
Warehousing and distribution centers can be complicated or they can be simple. It is like most things, the more you know the more yioi uare prepared to accept that you don’t know it all.
Join us on our webinar February 13th and learn and enjoy. See you then.
The time is now.
Technology Tidbits 1.0
The current crop of Dealer Management Systems (DMS) mostly provides process management tools rather than business improvement tools. This appears to be the continuation of the evolution of systems from the service bureau days when computers were overly expensive and out of reach for most dealers.
The system would put the image of the “old” paper forms on the screen and the dealer personnel would fill in the blanks. This was an incredible cash machine for the companies providing these services.
Today we seem to finesse the issues with “portals;” an interesting approach to say the least.
When the customer knows the part numbers they want and are calling in for parts they have two basic questions on their mind; Have you got it? How much is it? Yet typically the DMS starts with the question – “who are you?” Have you got your customer number of give me your name is where we have to start into the parts process and it is the same for the other departmental order and inquiry processes. Not a particularly good way to start a customer service process is it?
With the ease of program development today and the needs of the dealership; with the “size” of the current crop of DMS offerings in machine usage and process time; with the customer opportunities of doing their own ordering increasing I think it is time a “radical” rethink takes place at both the service providers and at the dealer/manufacturer level. What is it we need and want from technology? Do we want to continue to do what we have always done or do we want to step out into the sunshine.
The time is now.
Technology
We comment on a series of subjects related to the capital goods industry supply chain; from parts to service to management and to my take on filosophy. I am introducing a new one this week – Technology.
I will attempt to address various areas of the use of technology in the capital goods supply chains whether from the dealer or the customer perspective. I am sure this will be controversial at times and I invite your participation in the discussion. The more the merrier. It is never important that we all agree on a subject or a topic but it is critically important that we hear and understand other positions.
Management is about communication. It is about three major pillars – understanding, accepting and committing. I hope you will participate in the discussion.
The time is now.
Service Statement 2.0
I receive comments to my posts – thank you all – and I would like to address one of them more completely than a comment response.
Technicians, in the field, should be able to leave an invoice with the client upon completion of the work!
This is a subject that is near and dear to my heart. We have some of the smartest people in our employ working in the field. To operate on the basis that they are not to be empowered to create an invoice for the client is almost insulting to them. Isn’t it?
Perhaps you don’t have the Business system or communications access to allow this to happen but it should never be because the technicians don’t have the skills. Underestimating or underappreciating the talents and abilities of field technicians is a common canard.
The time is now.
Management Musing 2.5
One of the elements with significance in the New Reality is Technology. This vast subject I narrow down to cover the following points:-
We will delve deeper in each of these in the coming days.
The time is now.
Management Musing 2.4
Let’s review the New Reality. I recently discussed this with a group of executives and highlighted six of the elements that I think are important in the New Reality.
We will cover these six elements in the weeks ahead.
The time is now.
Service Statement 1.9
Recently I was in a room with a large group of dealer executives. We got around to a short discussion on the merits of talking to the technicians on the shop floor while they were working. There was a short misunderstanding regarding how serious that was for the efficiency of the technician. Interruptions kill efficiency on any kind of work. Office work has the same problem.
Think about the task of closing work orders. You sit at your desk and review the time taken and the parts used on the job. You look at what the customer wanted and how you satisfied the problem. And as you go through the review of the job the phone rings and interrupts you. You answer the telephone and complete the work caused by the call. Then you go back to closing the work order. Now let me see…. where was I? Can you understand what I am saying? Interruptions kill efficiency
The approach that I took to explain the point was the same that I always use. We are the doctors. This time I was the surgeon and he was the patient. He was on the table and open and I had the scalpel in my hand. The phone rang and someone wanted to talk to me. I left him there on the table and went to the telephone. How likely do you think that would be? I think I made the point.
The time is now.
Parts Pondering 2.2
It is intriguing watching dealers’ worldwide continue to do what they have always done. Why do we assume we know what we are doing when their market capture rate for the parts business is typically less than a third? More importantly many of the dealers have half or more of their parts business coming via their mechanics. It is intriguing.
While that is the definition of insanity it is also a sign that we still are not engaged in trying to satisfy our customer needs for parts. We let more than two thirds of the parts market fend for themselves and do the sourcing and buying of their parts needs wherever they think is appropriate. Why do we do this?
Perhaps because it is too difficult to do it any other way; We have to know our customers, we have to know their buying habits, we have to know our competitors, we have to know how to sell and what to sell. All of that is a lot of work. We will explore this more in coming months.
The time is now.
Friday Filosophy #2013-04
You will never do anything in this world without courage. It is the greatest quality of the mind next to honor.
Aristotle
However long the night, the dawn will break.
African Proverb
Courage is knowing what not to fear.
Plato
The time is now…..