If a dealer carries out many repair orders daily (150+), many customers are potential “waiters.” The waiter is a customer who wants to stay and wait in a showroom until their vehicle is ready to pick up. If only 30% of 150+ customers a day are potential waiters, one has almost 50 customers in the lounge trying to figure out what to do next. Sure, dealers can see it as an excellent upselling opportunity, and showrooms are shaping into shopping malls. On the other hand, the high number of waiters puts a lot of pressure on the dealer organization, especially during marketing service campaigns or tire seasons.

What do we know about the waiters?

In fact, waiters are more “allergic” to potential service delays than customers who are out of the workshop following their daily routines. AND waiters are less likely to approve additional work because unexpected extra time without their vehicles may significantly affect their schedule.

It seems the most challenging experience for dealers is to start to control the “right” number of waiters in the workshop during peak hours. Dealers are proposing better access to loan vehicles, introducing express services for loyal customers, motivating them to visit their dealership afternoons, etc.

Managing the correct number of waiters has become a trendy topic for everyone in our business. The call centers have asked if the customer wants to wait during their vehicle inspection. This simple approach helps dealers to manage the workshop utilization and balance it with the correct number of waiters.

Modern DMS has to help here and offer a simple way to track and visualize waiting for customers per day and hour.

As part of our latest product update, we have introduced new charts carefully integrated into the service booking workflow. Users can now work with the correct information at the right time of service appointment booking. An easy task for us product guys if we listen to customer needs. Small details create a big difference.

Looking forward to your feedback and am genuinely interested in your experience.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post Small details create a big difference appeared first on TaXaPa.

I came across one exciting guidebook related to the TOP Key Performance Indicators (KPI), which, according to the writer, can be easily applied in the automotive or dealership world. This was also my first impression, and I felt confident about that. I was determined to apply theoretical knowledge to the practice and integrate TOP KPI into DMS exercises. AND I hit a wall almost immediately.

The problematic part was an ambiguity of KPI terminology between the theory and practice (real life). To make a long story short, I prepared a table below to share with you particular situations:

What are the valuable insights from my exercise?

What most people call Efficiency is not a measure of the technicians’ ability to beat manufacturers’ book time (standard time). Because if technicians simply work faster, no more revenue will be generated, they simply complete their jobs more quickly. However, it will show an increase, but you will not produce any more profit. [L1]

Overall or Total Efficiency is a measurement of harmony between sold hours and working productively. This KPI is the gateway to significantly increasing bottom-line profitability. Thanks to that connection, I can link productivity and Efficiency. Thank you, Jeff Smith, for such excellent writing. It took me to the next level of understanding of the key levers of the business.

Frankly speaking, I recommend this book to everyone interested in increasing their KPI knowledge for dealers.

[L1] SMITH JEFF., The KPI Book, Insight Training & Development Limited in Stourbridge, England 2001

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post “If you can’t measure it, you can’t manage it.”​ appeared first on TaXaPa.

In cases where insurers supervise their own estimators usually, the process starts in the damage calculation system. On the other hand, many car dealers have already ‟won” the trust of insurers, and repair estimates are performed in their direction. Let’s look at each one in turn.

Workflow from the DMS side.

A service advisor creates a new repair order with customer, vehicle, and repair order scope (1.). The DMS Repair order is ‟connected” via a function to the damage calculation system (2.). This step enables a creation of the repair estimate (3./4.) which complies with insurers’ standards.

‟Harmony” between DMS and damage calculation system can be easily broken with problems related to data diversity. For example: by different formats of part numbers (677711 and A677711).

Workflow from the DMS side

To ‟bridge” similar situations, the DMS must have a clever way to ‟translate” and convert data into the DMS database (5.).

Labour, parts, painting material + other items including sales price are loaded to the original repair order for further processing (6.).

A final service invoice prepared according to an already approved repair estimate may significantly speed up the settlement of the invoice with insurers (7.).

Now see the scenario from the opposite angle.

Workflow from the Damage Calculation Systems

Workflow from the damage calculation systems insurers uses to ask their own or external technicians to prepare repair estimates which comply with their standards. In such cases, the creation of a repair estimate starts after visual vehicle inspection and mostly without direct dealer assistance out of the DMS.

A new case with the vehicle, customer, and finding details is being created in the damage calculation system (1.).

A repair estimate is edited, processed, and later provided by insurers to dealers for realization as a part of the newly created repair order in the DMS (2.).

Workflow from the Damage Calculation Systems

Service Advisors can load a repair estimate into the DMS either as a file or using the ‟Call Damage Calculation System” function as part of an interface solution (3.).

Finally, the repair estimate is converted into the repair order (4.) with all details related to labor positions, parts, etc. including approved sales price information. Now service advisors are ready to check and proceed with a repair order (5.) according to an approved repair estimate directly in the DMS (6.).

For a car-dealer to have on hand such an interface between damage calculation systems and DMS offers a great ‟accelerant” of the whole apparatus of claim settlements on collision repairs.

I hope you drew insight from the article. Looking forward to your feedback and genuinely interested in your opinion of it.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

The post Damage Calculation Systems and DMS Workflows (Part II.) appeared first on TaXaPa.