16 Mar Reconditioning – A New Bastion of Hope – The Future is Now
Having met with dealers at NADA, I’m reminded of Dale Pollak’s 2010 article, “Reconditioning – The Last Bastion of Old School Management.” While this is still generally true, there are finally straightforward solutions and verifiable success stories that have remedied this situation. However, getting reconditioning under control and keeping it there takes a lot more than an assault on “old school management.”
Every dealership has a different culture and, with respect to reconditioning where the variables are in a continual state of flux, there are no canned solutions. Dealerships repeatedly try to use a spreadsheet, shared Google doc or even a dry-erase board, but the limitations of using these manual tools for such a complicated set of processes is inadequate. It doesn’t provide the most critical element within a reconditioning solution: accountability.
With rapid acceleration in used cars sales, the market dictates it’s time to abandon inefficient manual practices and transition to new, intelligent technology to transform your entire recon workplace. Install a simple-to-use, Web-based, real-time management system. Existing processes can be mapped into a workflow software solution, called “continuous process improvement.” It is a systems approach to improving an organization’s workflow. What better arena than a reconditioning environment for this solution?
The process immediately uncovers problems without finger pointing, determines ways to fix them and monitors the outcomes. Measurement and evaluation is part of the process, and monetary rewards may be included to incentivize the workers. Management and techs all have the same information, and everyone is on the same page to make the best decisions or corrections. It is the most transparent thread you can put into place for performance metrics, visibility and accountability.
Another benefit of this so ware is that changes can be made within minutes — even temporarily for things like managing recalls. The system can adapt to a changing set of overlapping processes. There is a real-time connection to every car, every step and every user, from received to frontline.
The system delivers immediate results, and has a proven track record, with live data to back it up. Management is able to handle resources more productively and plan accordingly for the future.
Best news: It sells more cars. Typically, in the first 60 to 90 days of using the system, a time-to- market becomes clear. This will range from six to 10 days, or even higher. Equipped with both the actual times and the ability to make process and resource adjustments, the path to get down to three to five days is in place, cutting it in half. The difference of two added inventory turns. Imagine what two turns does to your bottom line.
It is just the beginning for new process improvements in reconditioning. Ride the wave. Contact me for a live demo.