The DMS automates core dealership functions and centralizes vast data flows. Gradually, however, data ownership dynamics changed.

OEMs and other industry players realized that dealership data provided massive strategic benefits. To gain control, OEMs began migrating dealership processes into their own proprietary applications, keeping dealers at arm’s length.

As a DMS Product Manager, I have been observing this trend for a long time. It started small, but under the banner of “Digitalization,” it has rapidly escalated into every area of dealership operations.

The 5 Phases of the OEM Data Takeover

Phase 1: Basis Electronic Data Exchange.

It began with simple interfaces for sharing parts and vehicle master data via file exchanges. This evolved into sending electronic orders, confirmations, and receiving status updates for warranty claims. At this stage, OEMs were entirely dependent on the DMS. Recognizing the rules of the game, OEMs began certifying DMS solutions, seeking the right candidates to become their “Global DMS Solution.”

• Examples: BMW ATLAS (Parts Master Data, Parts Return Status), BMW Order Entry (SA10), and BMW Warranty Claim (SA20–24). Also, VW Group’s ET2000 (parts master, parts order, parts receipt/invoice) and Porsche’s POLARIS (parts master, parts order).

Phase 2: The First OEM Aplication

OEMs opened the door to data exchange for their first external applications specifically designed for dealers. This included electronic parts catalogs (EPCs), where users visually selected parts, added work positions with OEM-standard time, and transferred them back to the DMS as a “shopping basket” for repair orders. As their appetite grew, OEMs expanded into vehicle sales, offering vehicle configurators and basic CRM tools, such as the Vehicle Sales Assistant.

• Examples: BMW ISPA (ISPA NEXT) and EPC/ETK. Mercedes-Benz XENTRY. VW Group’s ETKA (get order data and stock info), and DAF’s TOPEC vehicle configurator.

Phase 3: Process Flow Changes.

With their expansion into vehicle sales, the OEMs’ hunger for data grew further. The language shifted from “optional” to “recommended” for Dealer Applications. Their main aim was no longer just to gain access to data, but to implement their own processes and ways of thinking into daily dealership operations. The DMS became heavily dependent on OEM applications, and the first major dealership workflows moved outside the DMS. We saw the first signs of dealership resistance here, so OEMs countered by offering these applications at “no cost” and tying them to dealership bonuses. The trap was set.

• Examples: VW Group’s ElsaPro (Workshop orders), ElsaR, and SAGA/2 (warranty/claim processing). BMW’s Service Campaign (KTA1-KTA4). Stellantis’ Service Box v14 and Service Pad, and DAF’s Service Rapido and Technical Campaigns.

Phase 4: The OEM Application Ecosystem.

After taking over vehicle sales, the focus shifted to Aftersales. Repair orders were no longer opened inside the DMS; they were initiated in external applications where centralized vehicle history and service campaigns were already pre-loaded. By adding a simple “Transfer to DMS” button, the rules of the game changed forever. OEMs continuously added DMS functionalities — such as Workshop Planning, Electronic Vehicle Health Checks (eVHC), and automated customer notifications — creating an ecosystem of apps that only spoke to each other. They called them “Dealer Portals”. These applications were no longer recommended; they were mandatory. And with mandatory first-time provisions came the introduction of OEM software fees.

• Examples: Mercedes-Benz Online Appointment Booking / DSDbook. Porsche’s PCSS (Workshop orders, Vehicle data availability, Vehicle recall management, Contract management). Advanced middleware ecosystems such as the Toyota DPMM Message Queue and the Hyundai DSP Workshop Automation.

Phase 5: Total Control and the API Mandate.

Today, OEMs seek full visibility into the entire dealership operation, with heavy expansion into Reporting and Finance. They dictate what vehicles to order and what parts to keep in inventory, fundamentally changing data ownership. With the expansion of API-First integration technology, the OEM strategy has shifted from mandating a specific DMS to an “Any DMS, but mandatory OEM API-First” approach. If a dealer wants to process repair orders or sell vehicles, they must play by the OEM’s API rules.

• Examples: The BMW RIS API (Retail Integration Service layer) maps the entire sales and aftersales data flow. Mercedes-Benz MIAS One Invoice API, CoFiCo, and Stellantis Dealer Data Consolidation (DDC) and Free2Move.

The Current Reality: Dealership CRM and Inventory Takeover

OEMs have developed a massive appetite for CRM and parts inventory data — areas traditionally dominated by the DMS (with its ERP capabilities) or third-party tools like Salesforce. Dealership staff is slowly abandoning the DMS interface, spending their days feeding data into OEM applications that now lead the workflow.

Dealers are forced into this, incentivized by performance bonuses and the threat of losing access to crucial functionalities. They must share live inventory movements, open orders, and reserved parts.

What begins as an OEM offering “optional help” turns into a recommendation, then mandatory use. Now, parts ordering is often automated strictly by OEM algorithms. It’s common for dealers to find a truckload of parts they didn’t explicitly order, as seen with Mercedes-Benz DIMS (Dealer Inventory Management System) and DAF MDI (Managed Dealer Inventory) Ordering. A similar name is just a coincidence :-).

Given these dramatic changes, it is necessary to revisit the core question:

What happened to the DMS?

Despite the benefits of OEM integration, dealers are step-by-step losing ownership of the data they previously held securely in their own systems.

The DMS now focuses heavily on integration just to serve OEMs. It is increasingly relegated to operational tasks like printing orders, posting invoices, and basic accounting, while business management and customer intelligence shift entirely to the OEM’s domain.

What is the next step? Is it Game Over for DMS providers? The next logical target is an ambition to take over the core ERP itself. I can already see the first attempts at this takeover in the market. Let’s see where it ends up.

The Multi-Brand Nightmare

This shift is hitting multi-brand dealer groups the hardest. How do you manage a consolidated dealership company or dealer group if every single OEM forces you to play by their rules and use their specific walled-garden applications?

This challenge is apparent with a dealer group I currently advise on CRM & OEM integration. The solution becomes increasingly complex: if staff use an OEM’s external application for Brand A but remain within the DMS for Brand B, how can reporting and business operations be consolidated as OEM demands increase?

This is a highly challenging period for dealers and dealer groups — BUT not only for them.

For DMS providers, survival requires redefining their value with innovative, dealer-focused solutions. If they do not, OEMs will dominate and shape the dealership data ecosystem entirely.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post The Great Data Shift: Are OEMs Turning the DMS into a “Dumb Pipe”? appeared first on TaXaPa.

But what if your check-in process could be as fast as a drive-thru? What if you could capture more data, more accurately, in a fraction of the time?

This isn’t a future fantasy. It’s the reality of AI-powered Smart Gates, and they are set to completely transform the service lane as we know.

The Real Cost of an Outdated Check-in

Before we look forward, let’s be honest about the limitations of the “old way,” whether it’s paper or a simple digital reception app. Your detailed analysis of the Vehicle Reception Check (VRC) highlights common pain points for dealerships everywhere:

• Lost Revenue: During peak hours, it’s impossible to perform a thorough walkaround on every vehicle. Scratches are missed, tire wear goes unnoticed, and potential upselling opportunities for bodywork, tires, and alignments drive right out of the bay.
• Operational Inefficiency: Manual data entry, even on a tablet, takes time. It pulls your service advisors away from their most important job: building relationships with customers and clearly explaining service needs. This manual process is a bottleneck that slows down the entire workshop.
• Inconsistent Customer Experience: A rushed check-in can lead to disputes over pre-existing damage and a perception of inefficiency. Customers are left waiting, starting their service experience with a feeling of frustration.

Enter the Smart Gate: From Minutes to Seconds

Imagine this: a customer pulls into your service lane and drives through a gate. In the few seconds it takes, a suite of AI-powered cameras and sensors automatically performs a complete 360-degree scan of the vehicle.

This is the power of a Smart Gate. It instantly and automatically handles the most critical parts of the Vehicle Reception Check:

• Automated Damage Detection: High-resolution cameras scan the entire vehicle, using AI to identify and document every scratch, dent, and ding with timestamped, photographic evidence.
• Instant Vehicle & Customer ID: License Plate Recognition (LPR) instantly identifies the vehicle, pulling up the customer’s profile and service history in your DMS before they even step out of the vehicle.
• Tire & Wheel Analysis: Advanced scanners measure tire tread depth and identify sidewall damage, flagging immediate safety and sales opportunities.
• Seamless Data Integration: All this information — damage reports, tire conditions, mileage, and customer data — is automatically logged and pushed directly into the service order in your DMS. No typing, no errors.

The Tangible Benefits for Your Dealership

Shifting from a manual checklist to an AI Smart Gate isn’t just an upgrade; it’s a fundamental change to a dealer’s business model.

1. Maximize Revenue on Every RO: The system doesn’t miss a thing. By consistently and accurately identifying service needs upon arrival, you create data-backed upsell opportunities that your advisors can present with confidence.
2. Supercharge Your Efficiency: You reduce the vehicle check-in time from 5–10 minutes to under 30 seconds. This frees up your service advisors to handle more customers, manage the workflow, and focus on selling needed services rather than administrative work.
3. Elevate the Customer Experience: A fast, transparent, and high-tech reception process impresses customers and builds trust. It eliminates potential disputes over vehicle condition and shows you value their time.
4. Future-Proof Your Operations: As I’ve noted in my recent research, the most significant opportunity in automotive service lies in automating repetitive tasks. Smart Gate is the first and most impactful step toward a fully optimized, data-driven workshop, allowing your personnel to focus on what humans do best: building customer relationships.

The clipboard is a relic. It’s time to stop just documenting the service reception process and start automating it. The AI revolution is here, and it’s starting at your service lane entrance.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post Beyond the Clipboard: How AI Smart Gates are Revolutionizing the Dealership Service Lane appeared first on TaXaPa.

In my previous insight, I discussed how dealers shift their mindset from “nuts and bolts” to “bits and bytes” when managing electronic parts in their Dealer Management Systems (DMS). Continuing that topic of DMS architecture, I want to share a guiding principle I live by:

“The cheapest line of code is the one you don’t have to write.”

I have always prioritized configuration over custom code. During my time as a DMS product manager, I was constantly asked to add new tables, fields, or options to existing functional products. But that approach has clear limits.

Past Horror Story to Future Vision

I remember an older DMS version where we ended up creating two employee cards for the same person because we couldn’t fit all the business rules into a single one. That is no joke, we literally hit the “physical” limit of the user interface.

This absurdity is exactly what happens when you try to solve complexity by writing more code rather than building a configurable DMS that can adapt dynamically. This is the real difference between “Monolithic” and “Composable” DMS applications.

. . .

Let’s look at three practical examples of how we handle electronic software parts using old vs. new methods.

1. The Feature Request: New Part Types & Data Fields

The Old DMS Approach: Developers must write code to create a new database table for “Software Parts.” The same applies to hard-coding additional fields onto the existing parts page to make them visible.

The Modern DMS Approach (Functional Framework): The user simply configures a new “Part Attribute” named “Digital” and assigns it to an existing item class. No code is deployed; the system simply adapts.

Example: Microsoft Dynamics 365 Business Central, with the flexible “Item Attributes” feature.

2. The Feature Request: New Workflows

The Old DMS Approach: Developers write a hard-coded script (Code Unit):

“IF vehicle = EV, THEN prompt users to enter the battery level.” This script is rigid and hard to modify.

The Modern DMS Approach: Users can freely configure the user interface (page) with customizable fields. They define the required technical information steps before, during, and after vehicle repair without calling a developer.

Example: Vehicle Profile functionality

3. The Feature Request: Supplier Integration

Old DMS Approach: Developers build a custom, hard-wired file-sharing data bridge to a specific parts supplier or OEM. Now, imagine a dealer has 50+ parts suppliers using 50+ different communication methods. This is extremely expensive to maintain.

Modern DMS Approach: The DMS exposes a standard API layer that serves as a single “universal door” for potential suppliers. The supplier integrates with the framework using standard keys (credentials). The secure connection is established instantly, allowing Vehicle Software Parts Details to be shared automatically.

. . .

The Power of Frameworks

Modern DMS frameworks stand out for their ability to freely customize workflows (such as the steps needed to open a new repair order) and to automatically adjust the UI based on vehicle type and make. These features simplify DMS maintenance and help dealers expand operations more efficiently, particularly in environments with high-frequency updates or diverse dealer activities within a single DMS.

Recently, I participated in a product demo of a modern automotive DMS platform that allows users to go even deeper. They can build their own rules using visual workflow designers, dragging and dropping functional blocks to create logic like: “Trigger Battery Check Step when Fuel Type = Electric.”

Example of practical usage workflow editor designer in Microsoft Power Automate

This is currently the most advanced way to handle functional frameworks. It allows DMS to adapt to new technologies (like EVs) without touching the core code. Excellent way.

The Next Step: AI Automation

However, I believe it will go even further. While drag-and-drop is a significant improvement, I am looking forward to AI-driven automation handling this entire area.

In the near future, we shouldn’t even “draw” the workflow. The AI will analyze incoming vehicle data and automatically configure the necessary logic steps to meet the required business operations.

This is the ultimate goal: Zero code, zero friction, maximum efficiency.

Thank you for reading. Feel free to contact me if you need further assistance. When searching for a new DMS, keep in mind what you’ve learned here.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post Beyond the Monolith: Why the Best DMS Code is the One You Never Write appeared first on TaXaPa.

The Dealer Management System (DMS) is no longer just a warehouse tool, vehicle sales orders, or service planner. Occasionally, I hear it is a good tool for printing invoices.

In fact, a modern DMS is a dealer’s Digital Asset Management platform, and dealers should treat it accordingly.

From nuts and bolts to bits and bytes

The automotive industry is shifting from hardware to software, becoming increasingly software-driven as both vehicles and their components evolve rapidly. New electronic part types and their associated data must be effectively managed and integrated into workshop processes to enable accurate repair analysis, estimation, installation, and updates.

Robust Dealer Management Systems (DMS) are continually (blindly) evolving, adding new features and adapting and fine-tuning existing processes to meet emerging automotive needs. However, the most effective DMS is streamlined and built on modular functional frameworks, allowing features to be turned on or off as needed without altering the core codebase. This ability is the difference between a “Monolithic” and a “Composable” DMS.

DMS Modularity enables dealerships to adapt quickly to an ever-changing automotive environment.

. . .

The ability to adapt quickly is the reason I want to start my next article with Heraclitus’s quote: “The only constant in life is change.”

I want to break down how a modern composable DMS must handle new “Software (Soft) Parts” using an architectural approach, so-called functional frameworks, instead of adding new fields and functions on top of the existing core layer. Let’s answer the following question.

Does tracking software parts in dealers’ inventory make sense?

Short answer: Yes, absolutely, but not in the way we track brake pads.

Vehicle Parts are no longer just physical components you can store on a warehouse shelf; they can be a line of code, a digital certificate with an expiry date, or a license key.

What do we know about software parts?

Software parts include part numbers, associated costs, retail price, essential data (digital license key, software version, or tokens), and vehicle compatibility rules.

Let’s summarize the most common Vehicle Software Parts.

Digital Key Code to unlock Feature-on-Demand (FoD)

A customer purchases a vehicle with heated-seat hardware installed, but the software required to enable it is locked. The “part” the dealer sells is the digital unlock key.

Firmware & Calibration Files

Specific software versions are required for a hardware-based Electronic Control Unit (ECU) (e.g., a transmission control module).

Cybersecurity Keys & Digital Certificates

Modern vehicles require encrypted “handshakes” to install new parts (Gateway Security). These digital certificates are consumable and must be tracked.

Update Packages (OTA Over-the Air)

Large data packages that fix bugs or add new features.

New types of vehicle software are added daily; the list of vehicle software components is dynamic. This also reflects the need for a dynamic approach to DMS management.

. . .

We can now begin with DMS and its role.

Historically, software updates were hidden in “labor hours” (the technician’s time). But if a software update adds 50hp to an electric motor, it is a product with a retail price; it cannot be handled as a service anymore. It must be in inventory to be sold.

If dealers don’t track it, they often forget to charge for it. Tracking it ensures the dealership gets paid for the value it delivers to customers. Other reasons to track software parts in DMS are Warranty & Inventory History, Software Compatibility Rules, and Security.

In detail, Software Parts are managed in DMS under a new parts category (Digital Parts) but share the same data structure as physical parts (Parts Number, Cost, Retail Price, and Vendor Information).

See a real-life example from DMS below:

Secondly, instead of a physical shelf, dealers should use a “Virtual Bin” in their “virtual warehouse “ to store licenses for deployment.

Lastly, for me, the most interesting aspect is how software components are delivered (shipped to repair orders): when a software part is “sold,” the DMS shouldn’t print a picking ticket for a warehouse runner; instead, it should trigger an API request to the software manufacturer to release the license or download token.

Two more practical examples of software parts:

A dealer pre-purchases 50 “Full Self-Driving” licenses from the OEM. These sit in a digital inventory account on the dealer’s virtual warehouse bin until sold (deployed) to customers.

Another good example is the so-called TRP Parts (Theft-Relevant Parts), which are, in fact, a combination of a physical item (a vehicle key) and VIN-specific software that unlocks the key. I named such items and the Coded Parts; the DMS must be smart enough to handle all data properly during the repair process.

. . .

Did you find it interesting to read?

If yes, please follow my next article, scheduled for publication on 31.01.2026.

In my next article, I want to continue covering software components for vehicle systems and delve deeper into DMS configuration logic, using real DMS examples.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post Stop Giving It Away. Why Dealerships Must Treat Software Updates as Inventory appeared first on TaXaPa.

We wish you a Merry Christmas!

Team TAXAPA

The post Merry Christmas and Happy New Year 2026 appeared first on TaXaPa.

Why the Importer Matters

The importer sits at the center of the value chain, turning OEM strategy into market reality and keeping a multi-brand dealer network supplied, compliant, and profitable. On the other hand, dealers rely on importers for stock, pricing, incentives, parts, warranty, and sure on OEM data. Finally, OEMs rely on importers for market insight, demand signals, and execution. To make this triangle work, the automotive software solution must match the roles on each side of the triangle.

DMS vs. IMS: Different Jobs, Joined at the Hip

DMS (Dealer Management System) runs the retail operations: CRM, sales, service, parts, and accounting.

IMS (Importer Management System) runs wholesale operations: allocation, ordering, pricing/incentives, warranty policies, multi-brand governance, and network performance.

Automotive Insight: If an importer is also a dealer, IMS should extend the DMS and not replace it.

IMS Automotive Software Capabilities That Unlock the Triangle

1. Vehicle & Parts Management centralizes vehicle and parts inventory from the manufacturer to the dealer. It automates orders and updates, replacing manual spreadsheets and phone calls.
2. Sales Budgets & Quotas help set and manage flexible sales goals. It shares forecasts with the manufacturer and can limit dealer orders to prevent overstocking.
3. Import Cost Management tracks all import costs, from shipping fees to duties. It provides a real-time view of the total cost per vehicle, allowing for precise tracking against your budget.
4. Dealer Claim Management is an automated system for handling all dealer claims, including warranty and service. Dealers submit claims through a portal for quick validation and payment.
5. Dealer Portal gives dealers 24/7 online access to vehicle availability, order status, and recalls without exposing the system’s back-end complexity.
6. Wholesale CRM keeps customer and campaign data consistent across the entire network. It helps manage new product launches and marketing efforts with reliable information.
7. OEM Integrations allows the system to easily connect with multiple brands and their data (like models and pricing). It ensures all systems stay aligned and can adapt to changes without a complete rebuild.

Practical Playbook for What Ensures Seamless Collaboration

A) Clear data ownership

• IMS: model/price/policy master, allocations, warranty decisions.
• DMS: customer & transaction truth (sales, service, parts).
• Shared keys: VIN, PartNo, DealerID/BranchID, OrderID, CustomerID (consent-aware).

B) Modern integration patterns

• Bulk nightly for heavy catalogs & prices updates.
• Real-time APIs for orders, claims, and vehicle allocations.
• Eventing/webhooks for status changes (OrderPlaced, VINAllocated, ClaimApproved).
• Contracts: OpenAPI, versioning, retries, and SLAs.

C) One network portal
A single entry point for dealers to place orders, submit claims, check availability, and view KPIs minimizes email and duplicate outreach.

D) Shared KPIs & SLAs

• Integration: delivery success ≥99.9%, P95 event latency <5s, catalog freshness T+1.
• Business: lead response time ↓, RO conversion ↑, warranty cycle time ↓, fill rate ↑, dead stock↓.

E) Governance without drag
A small “control tower” (Importer + OEM + dealer reps) with a change calendar, RACI, and monthly review of defects, retries, and top impediments.

So, What Good Looks Like (Two Flows)

Warranty: Repair Order completed in DMS → claim pack auto built → IMS rules validate → decision returned → credit memo applied to dealer account. Full traceability, zero email.

New Vehicle Allocation: Dealer submits demand → IMS confirms VINs matching options → ETA + pricing/incentives flow back to DMS → sales use livestock without re-keying.

Seamless collaboration is not DMS vs. IMS, it is DMS + IMS, each doing its job and talking through a thin, reliable contract. With the importer orchestrating data, rules, and integrations, the entire triangle moves faster and serves customers better.

Do you want the detailed IMS capability checklist or an RFI template?

I can share a one-page document you can send to potential vendors.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post Navigating the Automotive Triangle appeared first on TaXaPa.

From the beginning, we have built our business on quality, a personal approach, and trust. Every client is a partner to us, and every project is an opportunity to grow — not only professionally, but also personally.

Our philosophy remains the same:

We do not just provide services. We create solutions together.

We do not just work for clients. We grow with them.

Thank you to everyone who has been and continues to be part of this journey. Your trust is both our commitment and our motivation.

We look forward to many more years together — even stronger, wiser, and closer to you!

The TaXaPa Team

The post 15 Years With You – Thank You for Your Trust! appeared first on TaXaPa.

Together, we reviewed our second-quarter goals and achievements, set priorities for Q3, and had open discussions on topics that required our team’s attention. The day was filled with fresh ideas, healthy debate, and a shared drive to keep moving forward.

But this workshop is about more than just performance – it’s about collaboration, people, and the culture we continue to build at TaXaPa.

Team TaXaPa – Things are getting better with us.

The post TaXaPa Day – 2Q/2025 appeared first on TaXaPa.

Throughout my professional career, I have been fortunate enough to visit various workshops, ranging from small, independent businesses to large dealerships and dealer groups, as well as several Original Equipment Manufacturers (OEMs) in different countries worldwide. This experience enables me to articulate the differences in how dealers utilize workshop resources. I have observed various approaches to organizing workshop resources and managing resource utilization. This is the focus of my article today.

Let’s start by asking questions.

What is the recommended planning model for organizing workshop resources?

What are the essential criteria for selecting the right way to utilize workshop resources most effectively?

What are the pros and cons of each organization’s techniques?

Before we begin, explaining the terminology will ensure we are on the same page. This is important because there is a lack of documentation and alignment in the field.

. . .

Workshop Resource Management

We have a mathematical equation: On the one hand, there is a demand for workshop activities such as vehicle repairs, inspections, and diagnostic services; on the other hand, there is limited resource capacity to perform these services.

The primary responsibility of Workshop Resource Management is to effectively balance workshop demand with minimal waste while maximizing resource utilization.

Workshop Resources

Typical workshop resources include people, machines (tools and accessories), work bays, and mobility vehicles. Each technician can possess different skills, available capacity, and Efficiency (Resource-Efficient Potential(1)). We should not forget that service advisors are also workshop resources. They handle receptions and handovers, conduct Vehicle Health Checks (VHC), or organize courtesy car pickups. Planning their involvement brings extra benefits to the workshop organization.

Personal Notes: Unfortunately, many dealers still underestimate and overlook the fact. Missing critical resources as service advisors during peak hours disrupts the workshop flow, creating “Bottlenecks,” negatively impacting workshop performance, and losing after-sales opportunities.

Resource Groups Planning

Resources are typically categorized by type, skill, and allocation. Common resource skills include mechanical, bodyshop, painting, cleaning, diagnostic, and electrical skills. Grouping Resources makes workshop organization and planning more effective, especially if the workshop has many resources (20+) and we need to control available capacity at the skill level.

Service Work

Workshop resources provide service work (mechanical, diagnostic, electrical, body, and painting work, etc.). To allocate their capacity, we need to estimate their involvement using either

> OEM Catalogs (Standard time)

> Workshop estimates (Best-Practice Estimation)

> External applications and catalogs (E.g., Audatex, DAT, TecDoc).

Resource Efficiency Potential (REP) and Planning Work Level (PWL).

Further, to choose an appropriate workshop planning model, two factors are essential:

> Resource Efficiency Potential (REP)

> Planning Work Level (PWL).

Resource Efficiency Potential (REP)

Resources possess skills, but how well they perform determines Resource Efficiency Potential. It is a dynamic coefficient that must be updated and calculated regularly (typically quarterly) for each resource in the workshop. Modern Dealer Management Systems (DMS) provide functional support for this.

Example of REP: Henry is a senior mechanic; he can perform a service inspection in 90 minutes, which usually takes 2 hours (Henry’s REP ≈ is approximately 130%). Therefore, we need to utilize his capacity differently to maximize his experience.

Planning Work Level (PWL) indicates the planning level at which the workshop operates to allocate resource capacity for service work.

Example of PWL

Level 1: Order -> Regular Maintenance after 30.000 Km

Level 2: Job -> Oil Service

Level 3: Task -> Change Oil and Oil Filter

Generally, PWL Levels 2 and 3 require more precise planning, better workshop organization, and increased DMS functional support.

Workshop Planning Models

Now, let’s connect all the points within the planning process context. Here, you can see two different traditional approaches to planning resources in the workshop.

Two-step Planning Model (Scheduling -> Assignment) and One Step Planning Model (Dispatching)

The Two-Step Planning Model is like reserving a table at a restaurant (you know you’ll get a table, but not which specific one yet). Upon arrival, the host assigns you to a specific table. This approach helps with planning ahead for resource workshop groups.

The One-Step Planning Model is akin to entering a coffee shop and being immediately assigned to a specific barista who starts preparing your coffee. This approach is practical for immediate, ad-hoc tasks where you directly assign a service job to a particular individual or work bay.

Now, let’s return to automotive and summarize it using proper terminology:

Which key criteria must be considered before choosing the preferred planning model for the workshop?

As you can see, both traditional planning models present distinct advantages and disadvantages. Like every coin, there are two sides, and there is a solution for every challenge.

Flexibility in adjusting the process flow based on the expected workshop load and circumstances is so important. Here, counting decision points and identifying potential bottlenecks can help determine which models best fit the dealer’s DNA and work style. The process flow visualization will spot such issues.

With the increasing availability of modern scheduling software tools powered by AI, which provide access to scheduling data, dealers can now analyze trends more accurately and automatically. They can consider planning for numerous factors such as expected no-shows, predictable absences, seasonal trends, and, most importantly, utilizing customer preferences and bases.

AI scheduling algorithms will soon support (but not replace) traditional planning models in many workshops, thereby reducing human interactions and opening a whole new dimension for service excellence.

Author note:

This writing builds on my previous article, and I wanted to update it with new experiences, add more details, and simplify it for a broader audience to emphasize the benefits better. I hope you find it helpful.

. . .

Besides resource group and resource planning, I included a couple of other planning models I learned.

Team Planning Model

Besides the “mainstream” planning methods, I noticed one interesting organizational style. Different resources were arranged into teams with predefined skill sets. This makes sense if the workshop operates with shift models, where teams operate independently, AND one person (usually a service advisor) serves as the team manager. Another observation is that some senior resources, primarily diagnostics, are shared among different resource groups, which makes workshop planning somewhat more complex.

End-to-End Planning Model

Another interesting planning style I observed was a distinctive model in Latin America, where the resource operates independently, including its work bays, and can handle the entire repair process alone, from reception to repair to handover. Surprisingly, this involved a large, multi-brand franchise dealer rather than a small, independent workshop. I refer to this style as the “one-man show”; sure, I can share more details about this unique approach.

Work Bay Planning Model

In specific markets, particularly in Asia, where human resources are not limited, I can observe a distinct planning model: managing at the workbay level. Here, dealers primarily plan work by work bay, with each work bay assigned to technicians. This approach is often favored by small and medium-sized dealers, especially when their Fixed Ops activities involve repetitive services like seasonal tire changes, quick repairs, inspections, and Pre-Delivery Inspections (PDIs). This model also lends itself well to time-boxed planning, leveraging the consistent skill levels of their resources.

[L1.]“How to distribute working hours in the Workshop #DMS“ Dr. Juraj Hanus, Technical Article, April 20, 2017, How to distribute working hours in the Workshop #DMS

[L2.]“No More No Shows“ Dr. Juraj Hanus, Technical Article, December 11, 2023 https://medium.com/@jurajhanus/no-more-no-shows-eccb3b2d4c17

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post The ART of Workshop Resource Planning appeared first on TaXaPa.

We have launched a dedicated blog at taxapa.com/blog, where we turn years of project management experience and dealership expertise into practical, easy-to-use articles. Our first posts cover key topics to help you optimize operations and boost revenue:

• Process Optimization & Revenue Growth – Discover how a Business Development Center (BDC) goes beyond a call center to free up workshop capacity.
• Digital Transformation – Learn how AI-powered checklists, telematics, and machine learning can speed up reception, inspection, and vehicle pick-up.
• Operational Discipline – Say goodbye to empty service bays with smart overbooking strategies that keep technicians busy while maintaining customer satisfaction.
• System Architecture & Strategy – Compare Dealer Management Systems vs. Importer Management Systems and explore Time-Control modules that help prevent revenue leaks.

What makes our blog stand out? Every article is written by consultant actively working in dealerships, testing DMS workflows, AI tools, and KPI dashboards. Expect clear insights, practical solutions, and expert guidance to help you streamline operations, increase profitability, and stay ahead of industry changes.

Visit https://www.taxapa.com/blog/ and tell us what topics you would love to see next!

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