4 Challenges Auto Dealerships Face, and How Stampli Can Help

Changes in technology, customer preferences, and logistics are having a huge impact on auto dealerships. Successful dealerships must change the way they operate, in order to generate both sales and service business. This discussion explains the challenges for dealership managers, and how Stampli can increase business efficiency.

Many dealerships automate the accounts payable process using Dealertrack DMS. Dealerships can use Stampli’s unique collaboration hub, advanced technologies, and intuitive interface to control the lifecycle of vendor bills and fully automate accounts payable.

Recent events have created new challenges for auto dealerships.

1. Dealing With Inventory Shortages

Car manufacturers started to face semiconductor chip shortages in early 2021, which made it difficult to complete production of most vehicle models. In addition, the pandemic disrupted the supply chain for hundreds of component parts, and manufacturers continue to struggle with chip shortages and supply chain issues.

As a result, dealerships have fewer new car models to offer, and projecting future inventory levels is difficult. Prices for both new and used cars have increased sharply in recent years, due to the limited supply of vehicles.

With fewer products to offer, attracting customers to a dealership is far more challenging.

2. Understanding Customer Preferences

Customer expectations regarding the car buying experience are changing rapidly. Ideas Plus Business reports that: “83 per cent of consumers in the US want to experience some sort of online interaction when they buy a car.” Buyers go online to search the dealership’s inventory, choose a vehicle, and to research financing options.

Technology allows buyers to comparison shop multiple sellers before they visit a particular dealership. Some customers may not see much differentiation between dealers, and dealer loyalty is flat or declining.

3. Focusing on the Service Department

One bright spot for the dealership industry is operating a customer-focus service department. Car repairs are an inconvenience for owners, who must find other transportation and pay unexpected repair bills. Every consumer wants a reliable service department that can make repairs quickly, and for a reasonable price.

AutomotiveMastermind points out that: “…customers who serviced with a dealer are 2.5x more likely to purchase their subsequent vehicle from the same retailer.” Satisfied customers can generate repeat service business, and eventually purchase more vehicles.  

Successful dealerships embrace technology, and use hardware and software to work productively and outperform the competition. What solutions should be in your dealership tech stack? Here are some common processes every dealership must complete, and how Stampli can help managers improve outcomes.

4. Managing Dealership Logistics

Dealerships can use technology to manage cash, operate efficiently, and to maintain strong vendor relationships. Stampli’s AP Automation software helps managers to address each of these key activities.

Improving cash management

Purchasing vehicles requires a big cash investment, and dealerships must keep a close eye on cash inflows and outflows. New and used vehicles are in short supply, and dealerships must be able to pay for vehicles when they become available. How can managers quickly monitor the dealership’s cash position?

Gain full visibility into your accounts payable data with Stampli Insights. Built directly into the most powerful AP Automation platform, AP teams are provided with all the tools needed to understand each invoice’s status, and other data.

Managers can review the number of invoices outstanding, and the dollar amount of invoices due using customizable reports. With the click of a button, you can review your accounts payable balance and make informed decisions regarding cash payments. With better information, you can manage cash more effectively.

Getting the right parts at the right time

A busy service department may need hundreds of vehicle parts each week to make repairs. The information sent to the parts vendor must be very specific, including the part name, number, and the vehicle make, model, and year. If the parts are needed due to a vehicle recall, the data in the recall notice must be followed.

Let’s assume that a customer needs a new transmission for a 2015 Jeff Cherokee. Here are the steps required to complete the repair:

• The Service Manager determines which parts are needed, and notifies the Parts Manager. 
• The Parts Manager orders the items from the manufacturer. Let’s also assume that the parts are ordered using a purchase order (PO).
• When the part is received, the Parts Manager compares the details on the shipping receipt to the PO. If the correct part was received, the transmission is forwarded to the Service department for installation.
• The General Manager, who operates the dealership, reviews the purchase order, shipping receipt, and the invoice. If the three documents match, the General Manager approves payment.

To complete these tasks, a large amount of data must be shared with multiple people, and the managers need to collaborate. 

Stampli provides each user with Billy the Bot, an AP bot that is equipped with advanced OCR, ML, and AI technologies. Billy captures invoice data in real time, and learns your accounting process for accurate coding and approval routing. This is a paperless approach to AP with duplicate detection, built-in calculations, PO support, and more. Custom fields allow users to input any data needed for invoice processing.

Invoice processing is much faster with Stampli. Users can ask and answer questions from teammates or management. With easy access to relevant details and documents available at the click of a mouse, making an invoice decision has never been easier.

Maintaining vendor relationships

Dealerships rely on vehicle manufacturers to provide new vehicles and parts, and it’s critical for dealers to maintain a strong relationship with each manufacturer. Stampli customers can use the Vendor Portal, which allows vendors to review the status of each invoice, and to ask questions. The portal keeps vendors informed, so that the vendor relationship can remain strong.

Don’t Just Manage Spend, Control It

Easily automate your accounts payable process whether you have one, five, or 20+ dealerships in Dealertrack DMS. Automate your accounts payable processes without any changes to how you are using your Dealertrack DMS system. 

Use Stampli’s unique collaboration hub, advanced technologies, and intuitive interface to smartly and efficiently control the lifecycle of your vendor bills with the most complete, easy-to-use, and flexible AP automation application available for dealerships. Don’t just manage spend, control it with Stampli.