As dealer groups around Europe consolidate, so the challenges of integrating multi-franchise, multi-site operations continue to grow.
Autorola Germany sees the biggest challenge of consolidation is joining together computer systems, which are specified by the vehicle manufacturer as part of the dealer franchising agreement. A single dealer group may be running seven to eight different IT systems and partial solutions across several different franchises.
For many dealer groups, the benefits of buying a business and integrating into their own network is huge. However, immediate economies of scale can be limited as different IT infrastructures from OEMs do not integrate with one another. There can even be challenges in joining data with other dealers in the same network.
Dealers face challenges when buying a new business
“Merging balance sheets is usually a simple process but everything else is determined by the complexity of each system specified by the OEM. There is no Europe-wide acceptance of a single dealer management system (DMS), so a dealer group is faced with challenges once they have acquired a new business,” explained Andreas Kunkat, sales director, Autorola Solutions.
“Used cars is one major problem area. Thanks to online sales the market has grown rapidly, and prices are extremely volatile. A dealer group may have hundreds or even thousands of used cars in stock across its business but, generally, managing stocking days and the lead times to buy, as well as preparation and sales is reactive.”
Autorola Solutions helps provide one point of reference for used car stock management
Andreas continued, “There is usually no one digital point of reference where a group used car manager can oversee the status of each vehicle and make proactive decisions. That is where Solutions, with our Fleet Monitor suite, is providing a valuable IT tool for dealer groups, manufacturers and leasing companies in Germany.”
Solutions’ asset management platform digitally and intelligently connects all the dealer’s group data, from purchasing and supply, to used cars and human resources. It is completely modular and can be configured and customised by the individual requirements within the existing IT-architecture.
“We integrate systems and software that are in place – or have to be there – and add what is missing such as interfaces, data transfers or automated order modules,” explained Andreas.
Autorola Solutions efficiencies drives greater profitability
Autorola Solutions enables dealers to proactively make decisions across a multi-franchise business enabling a business to benefit from the economies of scale associated with acquisition much sooner, whatever OEM franchises they own. When profitability, in typical dealer group operations, is just three to four per cent then these efficiencies are vital to give the shareholder a return on their investment.
Andreas said, “When we work with a client we are able quickly to transfer a dealer’s group vehicle assets into our Fleet Monitor asset management system, so they can see the status of every single vehicle from its new car production status to where it sits within the remarketing pipeline. We intelligently connect all business processes. Defined KPIs are easily controlled and analysed to reduce the overall lead-time per car.”
INDICATA market insights help reduce stocking days
“The recent integration of our INDICATA real time, used vehicle market insights platform with Fleet Monitor further supports the dealers’ ability to price used vehicles competitively within their local market, as well as ensure they only buy new stock they know is in high demand. The integration of INDICATA in Autorola Solutions enables automated pricing based on defined strategies per car type, segment, popularity etc. It significantly optimises used car profitability and reduces additional stock days based on pricing away from market,” added Andreas.
Autorola Solutions is already proving a major benefit to Santander Consumer Bank Germany across its group repossessions. Major dealership groups in Germany are about to implement Fleet Monitor to reduce their overall lead-time. OEMs and leasing companies are now talking to Autorola as they are beginning to understand what benefits the innovative and integrative solution could contribute to their overall strategy of digitalisation.
Digitising workflow processes helps achieve the optimum cost structure
“Autorola Solutions has no direct competitors. No system has the power and flexibility to manage automotive business’ overall process within an existing IT-Infrastructure by integrating the existing systems and customising the monitor based on the customer´s individual requirements,” said Andreas.
He continued, “Most of the other workflow solutions require an adaption to the provider´s process and logics, and often just focus on one or a few parts from the overall process. Dealer groups, leasing companies and OEMs are calling us to help them to implement their overall digitalisation strategy. They know that only by integrating and digitalising the complete process the pledge of exponential growth – or working at the required speed with the optimum cost structure – can be achieved.”
For further information contact Andreas Kunkat I Sales Director Germany I AUTOROLA Solutions phone: +49 (0)40/180 370 25 mobile: +49 (0)151 – 40 2660 -18 e-Mail: email@example.com
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