8 Ways Shop Management Systems Can Reduce Operating Costs

An effective shop management system can have a positive impact on operating costs in a number of ways. Of course there are costs associated with system implementation and ownership but if they’re effective – systems will pay for themselves. The following functionality inherent in shop management system will facilitate operating cost reductions.

1. Inventory control – Accurate inventory records prevent ordering parts that are on hand. Also identification of obsolete or slow moving inventory allows for reduced tax payments when it’s disposed of.
2. Productivity improvements – Automating and streamlining processes can result in significant operating cost reductions.
3. Vehicle repair history availability – Accessing vehicle repair history electronically is not only much faster than searching manual records it allows for sorting and filtering of specific repairs as well as recognition of previous repairs so they’re not repeated or recommended erroneously.
4. Recommended service accessibility – When stored electronically recommendations can be used to drive customer relationship management. They also allow for point of sale support when appointments are taken or vehicles are dropped off for service. Increased sales volume results in improved overhead absorption.
5. Integration – Direct integration with other systems such as parts suppliers, labor guides and accounting systems result in improved accuracy and increased productivity.
6. Quote accuracy and timeliness – Producing a quote while taking advantage of the integration and quick information access features of a shop management system will increase productivity and improve sales.
7. Analysis reporting – Reporting from a structured database can support management decisions in many areas such as sales, costs and profits. Monitoring trends in these areas will support adjustments and ensure business success.
8. Efficiency and Proficiency – Measuring technician efficiency and shop proficiency can have a powerful positive impact on operating costs. Not only can operating costs be reduced as a result of process improvements but throughput can be increased resulting in higher sales.