Dealer consolidation and BE changes are leading to new DMS buying habits

26 April 2004

 

Consolidation among dealer groups and the recent Block Exemption changes are altering the way dealer management systems are being bought.

 

The change is happening because BE means manufacturers can no longer specify which DMS system their dealers use, and thanks to the fact that ever larger groups face problems running different DMS systems across ever more sites.

 

So a trend is emerging where multi-franchise groups choose to adopt a single DMS across all their locations and franchises.

 

Neville Briggs, managing director of DMS provider Pinewood said: "Consolidation means that a smaller number of dealers is operating a greater number of sites. Combine this with the legacy of the old Block Exemption rules, and some dealer groups are now running two, three or even four DMS systems.

 

“This doesn’t make sense from a cost point of view – with four sets of licensing costs, four sets of support costs and four sets of training costs – and it certainly doesn’t make any sense at all from a management point view.”

 

Briggs explained that many dealer groups were now looking to rationalise to just one DMS and, according to Pinewood research, many will be able to cut costs by more than half.

 

He explained: "As long as the single DMS you choose is able to interface with all of your manufacturer systems, and this is something companies like ourselves have been working hard at, there is no disadvantage to having a single system."

 

Briggs added that operationally, having a single DMS system also brought a number of advantages. He said: “Transferring staff between franchises is easier, for example, because no retraining on systems is required. Also, comparing key management data across difference dealerships is simpler.”

 

 

For further details please contact Simon Wells at
Paperchase Public Relations on 01283 711311
or e-mail simon@paperchasepr.co.uk