Why Automotive Companies Need Next-Gen DMS

Auto Tech Outlook | Thursday, February 25, 2021

The automotive and manufacturing companies need a next-gen dealer management system (DMS) due to technological advancement and ever-changing consumer behavior. 

FREMONT, CA: A traditional Dealer Management System (DMS) covers numerous criteria that address key areas such as pre-sales (lead/enquiry management), sales, procurement, service/after sales, inventory management, financial accounting, HR, and CRM. It brings together OEMs and enterprises, dealers, distributors and consumers, offering a seamless and enriched operating experience. A DMS is an ERP for dealers, facilitating dealerships to perform their regular operations effectively.

A DMS in the supply chain landscape will be a significant entity because conventional dealerships will continue to be crucial in the coming decade.

Need for a paradigm shift

Technological advances supported by changes in government laws and policies and with ever-changing consumer behavior have paved the way for various and specialized means of connecting with customers and delivering the necessary products or services. In the global and local manufacturing, consumer goods and automotive sectors, it has developed multiple challenges in the supply chain ecosystem.

This increasing challenge has given rise to the need for specialized next-generation dealer management systems (Next-Gen DMS). Some of the recent industry use-cases that illustrate the need for a Next-Gen DMS are below.

Extending network

In recent years, a prominent paint manufacturing corporation has been using a DMS for its distributors across several nations. This DMS is for their manufacturers, and they want to expand it to their supply chain's leaf nodes, for example, dealers and distributors.

Enables the manufacturer to procure a separate form and set of licenses, as there are different modules in the current licenses. The licensing cost will be expensive for the manufacturer while doing this, becoming a massive obstacle.

Functional & Technical Scalability

A significant corporation making passenger cars is now using a DMS that has been in operation for a few years now. According to company requirements, many modifications or enhancements are necessary.

Legacy technology and end-of-life hardware make it difficult and expensive to perform even small changes in this DMS.

Capital Investment

A decade-old DMS is being used and spent heavily on recurring licenses by an automotive leader in India. An upgrade is necessary for DMS and system software due to usability problems, performance, and customer experience.

Updating the solution needs enormous capital investment in licenses and infrastructure, but it does not promise modern cloud-native applications' experience and scalability.

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