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Dealer Management System

A Dealership Management System (DMS) is a bundled system created specifically for

car dealerships but also adapted for Boat, RV, and Power sports dealers. These
systems often contain software that caters to the needs of the finance, sales, parts,
inventory and administration components of running the dealership. One of their
functions can be automating tax returns. DMS software typically includes support for all
aspects of running a dealership such as:

• Tracking vehicle inventory

• Tracking sales
• Finance and insurance calculations
• Menu Selling Systems
• Tracking customers (and customer follow up)
• Accounting
• Managing dealer website
• Calculating employee commissions
• Purchase order tracking
• Parts inventory
• Work order management
• Appointment scheduling

A typical DMS installation includes a central server which stores all data, allowing multi-
user access for as many as 50 or more client computers. Some installations may include
thin clients. Other DMS providers use a centrally-hosted or application service provider

Some new car dealerships used to be forced to use a certain DMS by their affiliated
automotive manufacturer. This, however, is no longer the case due to the Block
Exemption Regulation.

Telecommunications companies want to reduce costs while enhancing their ability to

reach end customers. Success depends on maintaining close, efficient relations with
dealers. Dealer management capabilities from SAP provide the full range of functions
and tools that telecommunications companies need to manage dealer relationships. You
can monitor and support your dealers, integrate them into your internal processes, and
collaborate with them to control costs and reach end customers – while setting new
standards for efficiency and responsiveness.

SAP’s approach to dealer management gives you the full range of functions and tools
that you need to manage your relationships with dealers. It draws on SAP® solutions for
relationship management, finance, supply chain management, and business intelligence
– as well as SAP’s extensive experience with the telecommunications industry. An easy-
to-use, comprehensive Web portal enables your dealers to create their own customer
contracts and hardware orders, pay bills online, and access a wealth of information
about your products and special offers. And it lets you integrate dealer processes and
customer interactions with your company’s core processes – which opens the door to
new levels of efficiency and responsiveness, while strengthening your dealers’ ability to
sell and service your products.

With the dealer management capabilities from SAP, you can:
• Manage incentives and commissions.
You can process and calculate business-case-related or variable compensation
schemes for internal and external recipients. You can monitor commissions and
payments. You can take advantage of easy-to-use calculation rules based on business
needs, and track changes through a clear audit trail. And you can ensure that everyone
throughout the channel – including employees, partners, and managers – has clear
visibility into both earned and expected incentives and commissions.

• Support and analyze dealer performance.

You can plan and analyze the business that is conducted through indirect channels, and
use tools for recruiting, profiling, planning, monitoring, segmenting, training, and
certifying dealers. Overall, these capabilities help you develop a better understanding of
your dealers – what they sell, where they sell, and to whom they sell. And this
understanding enables you to help your dealers work more effectively with end

• Support dealers’ operations.

You can give dealers access to marketing tools that include personalized product
recommendations and catalogs, content and collateral management capabilities, and a
sales and marketing library. You can support them with campaign management and
sales capabilities, including pricing and contracts, interactive selling and configuration,
and point-of-sale tracking capabilities. It’s easy to integrate dealers into your order
management system. And you can provide them with service-enabling tools, such as live
partner support and knowledge management, request management, and complaint and
return management capabilities.

• Manage the supply chain more effectively.

You can work with dealers to perform demand planning, supply network planning, and
production planning; to increase delivery performance with available-to-promise
capabilities; and to execute supply chain processes. The results: increased automation
of processes, enhanced transparency into order processing, more accurate planning,
reductions in stock, and the ability to make the best use of resources to meet customer

• Provide integrated, focused information to dealers.

With SAP’s highly developed portal technology, you can give dealers easy access to
tools for selling and buying, finding and ordering marketing materials, handling online
billing and payments, and performing analyses – just to name a few functions. You can
deliver targeted content that’s tailored and personalized to meet each dealer’s specific
needs. And you can provide 24-hour support and advice while reducing sales support
and communication costs, increasing order accuracy, and enhancing dealer

The SAP® Dealer Business Management solution triggers a fundamental shift

in managing dealer operations for both OEMs and independent dealer groups.

Integrated with the mySAP™ ERP solution, it provides support for every
function of a dealer’s
operation, including:
• Customer management
To optimize existing customer relationships and attract prospects, dealers
can make critical vehicle, sales, and customer information accessible to sales
personnel. Using integrated office functionality, they can manage customer
appointments, record customer comments, and use workflow triggers for
follow-up activities. Dealers can leverage data about sales transactions,
contacts, customers, and vehicles to
create targeted marketing activities.

• Vehicle sales and administration

By linking customer requests and vehicle orders with existing stock at their
site, within the enterprise, and in the pipeline, dealers can streamline
administrative, financial, and daily operational activities. They can compile
vehicle history with data from planning, sales and distribution, and after-sales
processes involving warranty claims, service, trade-in, and resale. They can
perform tax calculations and satisfy legal requirements by
country, region, and state.
• Vehicle service
Dealers can schedule service, process service orders, and optimize
technicians, tools, and parts as well as their deployment and scheduling. With
links to OEM systems, they can access parts and job catalogs, vehicle history
files, and warranty systems. They can increase service capacity utilization,
improve efficiency, and decrease operating costs by monitoring service and
expanding visibility into fixed operations.
• Parts management
Dealers can plan and procure parts, manage inventory, perform cross-
location availability checks, and conduct counter sales of service parts. They
can collaborate with business partners, such as regional parts depots,
suppliers, and other dealerships,
as well as monitor and analyze parts operations.

SAP DBM is not designed to support every need of every dealer in every market, which
would be a significant challenge for any solution. Instead, it is designed to accommodate
dealers’ various specialized needs by being open for integration with third-party systems,
such as used-car valuation systems (from EUROTAXX, NADA, Kelly Blue Book, etc.) or
a dealership’s existing resource-scheduling system. In addition, SAP DBM is based on
the SAP NetWeaver platform, which makes the integration of dealer and partner
systems relatively simple. All in all, the solution is designed to provide critical support
and integration for dealers, while fitting into their overall business environment.

In addition to accounting, SAP Dealer Business Management supports all the important
business processes that occur at automobile dealerships in controlling, spare parts,
service, sales, and personnel. All activities are based upon uniform data. Bid proposal
management integrated in SAP Dealer Business Management provides information on
possible special prices, discounts, or special conditions. The ability to consolidate data

across several locations enables users to trace every sale or invoice item – in both sales
and service. This feature creates a relationship between the selling price and the
targeted revenue. Such detailed reporting also forms the basis for calculating the
contribution margin for customers and orders, as required by auditors. Dealer can now
see how much profit he earned (if any) from each order. SAP Dealer Business
Management gives an automobile dealer’s management a tool that supports economic
decision making based upon current numbers.