5 things to consider when selecting a new DMS

Are you thinking about selecting a new Dealer Management System? That is an important decision with a lot of impact! Here are 5 things to think about before taking a decision.

1. What are the costs (ALL costs!)?

When you think of the costs of a new Dealer Management System, you quickly think of the software licenses, the project costs and any maintenance and support costs. But that's not all! Also consider the costs of any follow-up projects, the time your employees need to spend on the project (and cannot spend on the daily business) and the learning curve that all users will go through when they work with the new software. Direct costs are often easy to identify and quantify, but indirect costs must also be included in the calculation.

2. What are the benefits of the new system?

Much more fun, but also much more important, are the benefits of the new system. Try to quantify those benefits as much as possible.

A few examples:

  • 40% lower inventory costs due to more control over the spare parts movement;
  • 15% increase in productivity of service technicians due to improved automation;
  • 5% increase in the utilization rate of the rental fleet due to better planning;
  • 10% more turnover with existing customers by being able to act faster.

Even with conservative estimates of the benefits, you will see that the payback period of new software is short and investing is (in many cases) a good choice.

"Much more fun, but also much more important, are the benefits of the new system. Try to quantify those benefits as much as possible."

3. Which features of my current system will I miss?

You want to become better with a new system. However, it is not realistic to think that EVERYTHING you can do now, can also be done in the new system. Some options have disappeared or have been replaced or the processes have changed. That one handy shortcut may not be there anymore. Or maybe you go for a step-by-step implementation where, right after go-live, you only have the most important functionalities. And where follow-up projects are required to implement the other features. In that case, you will miss a bit more after the go-live. Not a big deal, but something to keep in mind.

4. What new options will I have at my disposal?

A lot has changed since the implementation of the previous DMS. Your company has developed, the industry, your customers and suppliers, and certainly also the software. That opens up new possibilities! And those are precisely the things that make your staff enthusiastic. For a successful implementation, it is crucial that your organization stands behind the new DMS. Thanks to new solutions, modules, features and functionalities, employees realize that the DMS will personally benefit them enormously.

5. How will I implement the new DMS?

Something that is often thought about too easily is the implementation of the new Dealer Management Software. It's not something you just do on the side. Such a project often takes months and consumes a large part of the time from several (important) employees. For example for shaping processes, to test the software, to convert data, to train other users and to realize documentation. Therefore, carefully prepare the planning of the project and ensure that employees have the time and opportunity to implement the new system.