What is the role of a Dealership Management System in the automotive business?

The clients who use our Production Efficiency Platform are often business owners or managers operating an established dealership. However, we receive inquiries from potential customers who are setting up a new business or looking for a way to improve the efficiencies of their existing business.

This article is written for an audience that is brand new to the world of DMS. We define what a DMS is and what it can do for your day-to-day operations below. If you’re in the process of choosing software, check out our blog on how to choose the right DMS for your business.

What is a dealer management system?

A dealership management system (DMS) is a bundle of information systems designed specifically for the automotive industry, car dealerships, or large equipment manufacturers. DMS is a software platform that allows the business to manage:

Sales

Vehicle inventory

Finance

Parts

Service

HR & Payroll

CRM

What are the common dealership management system features?

Like all software platforms, the features of a DMS vary from system to system. The features also depend on what you need as a business. You can choose a simple DMS with the core features or a more sophisticated system that includes advanced features.

Some of the common core features include:

Extensive reporting capabilities

Dashboard view of activities

Customer management features, including tracking current customers and leads

Electronic scheduling of appointments

Ability to pull credit reports

Vehicle inventory management

Parts inventory management

Ability to pull vehicle history reports

Ability to pull service history reports

Traditionally, the automotive industry worked with various platforms that require different logins and access points. Essentially, what a DMS does is pull these platforms into one system for ease of use and accessibility. Instead of needing to close one software to check the availability of a car and then opening up another software to manage customer communication, a DMS allows all departments access to this data in one place.

What are the constraints of a dealership management system?

While a DMS is designed to improve the day-to-day operations of a business, many lack the features for two-way communication with the customer, communication between departments, and real-time reporting. The result is missed sales opportunities, an increase in downtime and bottlenecks, and labour hours that could have been put to better use.

In this industry, there is always a more efficient way of doing things. Advancements in software have allowed for integrations that work with an existing DMS. Integrations like our Production Efficiency Platform enhances these processes by fine-tuning the communication process between departments and customers.