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Stay ahead of the game with the help of European Customer Solutions
publication date: Aug 28, 2010
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author/source: Allan Monteath
The latest industry figures show that new car sales in the UK rose 13.5% in May 2010, compared with the same month a year ago.
In
addition statistics from the RMI Dealer Attitude Survey (DAS) show
increased confidence and rising profits across dealerships. With such
great statistics it can be tempting to relax a little, but Allan
Monteath from European Customer Solutions (ECS) warns dealers to remain
vigilant and continue to improve processes in order to save on
unnecessary costs.
During the economic downturn manufacturers and
dealers alike have been challenged, and surviving until this point is a
great achievement in itself.
But things are looking up. The
recent figures from the Society of Motor Manufacturers and Traders
(SMMT) show that new car sales in the UK rose 13.5% in May, compared
with the same month a year ago. This is the eleventh successive monthly
rise, with the number of new cars sold in the UK during the month at
153,095 compared with 134,858 in May last year.
|  | | • Allan Monteath is managing director at European
Customer Solutions, which works with motor manufacturers and dealers
throughout Europe to improve efficiency and increase profitability. |
In addition the recent Retail Motor Industry Dealer
Attitude Survey (DAS) found that 78% of dealer networks are reporting a
rise in their profit rating. As for the coming months, dealers seem more
confident as regards profits with an increase to the all-dealer average
score from 3.3 to 3.5.
However, now that confidence is picking
up again it is important that complacency is avoided and that the motor
industry maintains a tight handle on costs and standards. Ensuring a
quality standard for consumers and putting in place efficiency levels
and guidelines is the best way to guarantee long term success.
Allan (above)
said, "At ECS we believe that having a benchmarked standard for
processes will not only serve to maintain quality standards across all
dealers, but help to lower their costs by achieving maximum efficiency
throughout the business. | | Having worked within the motor industry for many years,
the team at ECS has defined two key areas which can help improve
efficiency and increase profitability throughout the entire supply
chain, from dealerships, to importers and distributors, through to the
manufacturer".
1. Aftersales Management – look
at all areas of aftersales activity as a way to improve dealer
profitability; from the overall customer experience to best practice
business improvements within the workshop, through to bodyshop and
parts; there is a huge array of activity that can be put in place to
boost profitability.
2. Warranty Management and Control
– closely related to the first point; ensuring you have an effective
warranty management system in place can ensure time and money is only
spent where it is required and helps to build confidence and trust
between manufacturers, distributors and dealers. Implementing warranty
standards and undertaking training programmes to ensure everyone
involved in the warranty process makes it run smoothly can result in
significant business benefits and cost savings across the board. |
"At ECS we work closely with our clients providing
productivity and efficiency analysis, along with financial and business
reporting and recommendations to ensure that all aftersales areas are
working effectively. This has resulted in some fantastic savings but
also increased customer satisfaction and customer loyalty – which in
turn improves the long term stability of the business.
"The next
year is likely to remain tough for businesses, but if the motor industry
can work as a whole to improve all areas of the business and make sure
it is running as efficiently as possible then hopefully dealers will
continue to feel optimistic and we’ll see another increase in sales and
even better scores for the next Dealer Attitude Survey." | | | | |
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