The 4 Most Common Reasons Dealerships Seek to Change Their DMS 

Choosing a new DMS is a comprehensive process that requires careful consideration of multiple factors, as it represents a significant investment. We've identified recurring needs and requirements that dealerships face when looking for a DMS.

The automotive industry varies across countries and regions due to diverse economic and technological factors that shape dealerships and their customers in different ways. Yet, when searching for software to tackle these challenges, four key points frequently emerge

1. The Need to Optimize Tasks, Streamlining Processes, and Save Time 

When a management tool isn’t tailored for the industry, the complexity of each process becomes apparent. This often occurs when a generic tool is forced to fit a specific industry, leading to quick fixes, underutilization of features, and delays in processes that should only take seconds. 

The search for a DMS may begin when: 

  • The Service Department still relies on pen and paper to schedule appointments and assign tasks to technicians. 
  • Errors from manual tasks abound, resulting in significant time and cost. 
  • Hours are wasted cross-referencing reports, just to produce a presentable summary for the CEO. 
  • Bottlenecks occur between departments: for example service work is completed, but administration hasn’t invoiced it, leaving the customer waiting. 
  • Satellite applications are used to fill in the gaps left by the existing system. 

In contrast to these scenarios, a DMS adds value by centralizing all operations in one place, providing control, real-time visibility, and automation of critical tasks. This streamlines daily management and ensures that every department aligns with the business’s objectives. 

2. Navigating a Growth Process 

Business growth brings new challenges: new stores, increased sales, and the need for efficient inventory and daily operations management. Without a robust system, maintaining coherence across departments and ensuring a positive customer experience can be an uphill battle. 

Key factors to consider during growth include: 

  • Fast, clear, and reliable communication between branches. 
  • Consistent information across all locations. 
  • Reports that consolidate all management data. 
  • Control over key processes in every branch: budgets, sales, payment approvals, controls and audits, customer satisfaction, etc. 
  • Efficient inventory management to prevent excessive emergency orders and obsolete stock. 

3. Your Current DMS Isn’t Enough 

Some dealerships already have a DMS, while others use generic ERP or invoicing software, but they face limitations that hinder their daily operations. Common issues include outdated systems, poor integration with other platforms and with OEMs, and a lack of flexibility, all of which impact efficiency. 

For every action, there’s the right tool and method; you can’t win a golf tournament using a pool cue, and you can’t be a flagship dealership relying on paper, countless spreadsheets, and generic systems. A company’s aspirations, goals, and culture are also reflected in the system it uses. If the system is inadequate or too general, that shortfall translates into each customer’s experience. 

4. Starting or Undergoing a Digital Transformation 

With technological advancements, dealerships are eager to digitize manual processes to enhance efficiency. Meanwhile, regulatory agencies and OEMs are demanding alignment with current digital trends. 

From appointment management to implementing data-driven strategies, and from invoice generation to sending information to your OEM, every action is shifting from analog to digital world—a demand that can no longer be delayed. 

The Endless Advantages of Making the Right Choice 

A DMS, such as Autologica Sky DMS, should address these four needs for any dealership seeking a reliable system to enhance business results. If what you’re currently using falls short in any of these areas, you’re undoubtedly perpetuating a tool that hinders your company’s progress.