Why Next-Gen DMS is on the Rise in the Automotive Manufacturing Sector

Why Next-Gen DMS is on the Rise in the Automotive Manufacturing Sector

Laura Davis, Manufacturing Technology Insights | Monday, August 02, 2021


Next-Gen DMS is intended to make the DMS digital and connected, allowing dealers to manage their entire business from a single platform.


FREMONT, CA: A standard Dealer Management System (DMS) outlines a wide range of needs, including pre-sales (lead/inquiry management), sales, purchasing, service/after sales, inventory management, financial accounting, human resources, and CRM. It connects OEMs and businesses, distributors, dealers, and customers, resulting in a seamless and enhanced operational experience. A DMS is a dealer's ERP, allowing dealerships to run their regular operations more efficiently.

As conventional dealerships will be crucial in the next few years, a DMS will be an essential element in the supply chain landscape. As per a survey of automotive dealers, the first visit (to the dealership) is the most important for automotive customers, and sales personnel play a significant role in this.

Numerous customers will still rely on dealerships for additional information that is hard to obtain online. This strongly implies that dealerships will be one of the supply chain ecosystem's cornerstones, indicating the necessity for a digital system to maintain them.

Dealer Management Systems have made a lot of progress since they first became popular in the early 1990s, advancing from decentralized thick clients and sustaining heterogeneous systems to centralized DMS applications and becoming an essential part of the supply chain network.

Need for a paradigm shift

Technology advancements, combined with changes in government rules and policies and ever-changing consumer behavior, have created opportunities for numerous and specialized methods of engaging with customers and delivering the necessary products/services. This has resulted in multiple challenges in the supply chain ecosystems of the manufacturing, consumer goods, and automobile industries, both globally and locally.

These increasing challenges have prompted the development of committed Next-Generation Dealer Management Systems (Next-Gen DMS).

The following are some latest industry use-cases that highlight the need for a Next-Gen DMS.

Extending network             

For several years, a renowned paint manufacturing organization has used a DMS for their distributors across numerous nations. This DMS was created for their distributors, but they now want to increase it to the leaf nodes of their supply chain, which are dealers and retailers.

As the current licenses are for different modules, the manufacturer must obtain a different type and set of licenses. In doing so, the manufacturer anticipates a high cost of licenses, which becomes a significant hindrance.

Functional and technical scalability

A large passenger car manufacturer is already using a DMS that has been in place for a few years. Several changes or improvements are necessary to meet business demands.

Due to legacy technology and outdated hardware, making minor changes to this DMS is difficult and expensive.

Capital investment

Many automotive leaders are still using an outdated DMS and investing a lot of money on recurring licenses. To improve usability issues, performance, and customer experience needs an upgrade to its DMS and system software.

Updating the solution necessitates a significant capital investment in license and infrastructure but does not guarantee the experience and scalability of modern cloud-native applications.

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