Switching From Pen and Paper to A Dealership Management System (DMS)

switching from pen and paper to dealer management system (DMS)

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Dealers have been managing their businesses for a long time with Excel, Word, and other rudimentary methods. Unfortunately, the data lags that exist between those systems and events happening in the dealership in real-time leave too many opportunities on the table. Chances are that’s why you’re here!

In this post, we’ll cover the top three reasons why dealers make the switch to a dealership management system (DMS) and will debunk the greatest myth as to why dealers say they “can’t.” 

Not sure what a DMS is? Check out our brief blog article to learn more.

1) Dealer management systems save the dealership precious time

In comparison to Excel, data entry becomes much easier and more consistent on a dealership management system (DMS). Data is stored in a central location so it can be accessed without having to rekey everything from scratch. Sales can access information from the service department and repairs in just a few short clicks. 

Taking this one step further, some dealer management systems can integrate with other systems within your dealership. For example, by integrating with accounting solutions like Xero, or Quickbooks Online and e-commerce solutions like Shopify, you can centralize your dealership operations by connecting all of your departments and storing your data all in one place.  

2) Dealer management systems create better data for reporting and action 

When data is entered into a dealer management system, it is automatically checked for errors. When data is entered into a spreadsheet individually, however, it can be skewed if someone misenters the data. 4,000 can easily become 40,000 when you fill out enough spreadsheets.   When it comes time to do an analysis between multiple spreadsheets, this error may not be noticed right away, costing you and your team valuable hours (and countless headaches). Furthermore, a dealer who uses Excel or Word will find that their data becomes outdated very quickly. In contrast, a dealer management system is able to sync all of your departments and provide you with updated, 100% accurate information in real-time.  

3) Dealer management system makes your team better and clients happy 

With a modern dealership management system, dealers are able to spend less time on data entry, reconciliations, and reports, and put their focus back on matters: running their business. This enhanced productivity also extends to the members of your team: a salesperson can close more deals and your operations manager can get equipment out the door faster to make room for incoming stock. This point ties in hand in hand with having more time and better information. Modern dealer management systems should be viewed as an investment that pays for itself through increased efficiencies alone.  This enhanced efficiency doesn’t stop on the dealership floor. Dealer management systems allow you to manage your dealership from anywhere. If a dealer is out of town at a show, they can still easily monitor exactly what is going on in their business in real-time.  

Debunking the greatest myth about DMS  – it’s too expensive and complicated

With all of this said, dealers still hold up because they think implementing a dealership management system costs too much and their team is too small. To be honest with you, they’re right.  The traditional DMS model is too expensive and forces a lot of dealerships into a box that they just don’t fit in. However, there’s an alternative solution to the traditional DMS model. This is why small to midsize dealers are taking the plunge and signing up with a dealership management platform.  A dealership management platform does everything DMS does but uses today’s technology to run the platform. Think easy-to-use interfaces, API integrations, and no startup costs or hosting requirements. Learn more about what a Dealership Management Platform can do for your dealership here.

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