Five Ways to Plug Profit Leaks in Recon
George Nenni, Vice President of Operations, Dominion Dealer Services
With the competitive environment in which today’s dealer operates, smart owners cannot afford to ignore key processes. The lost opportunities and profits from an inefficient process of preparing acquired vehicles for retail sale is a problem many dealers face. Smart retailers of every industry know this, and the very best operators get new inventory on the shelves and retail-ready in the shortest amount of time possible. And, why shouldn’t they? Carrying costs will only increase in the future, and the very best dealers are driving their inventory turn times at or below thirty days. Dealers cannot afford to have inventory capital sitting around in an inefficient, low visibility series of processes. The first step for dealers is identifying the daily costs to carry a piece of inventory. There are a few established industry benchmarks that should serve as an initial goal. The next step is to identify how the dealership is currently performing against those standards. Dealers should be careful not to guess at this number, or employ too much wishful thinking. This should be a relatively easy number to track down. Once these first two steps are complete, it is a straightforward math exercise to calculate the current profit loss. For improving the processes, the next step is to create some visibility into the number of steps involved, and the time for each step to get a vehicle retail-ready. As they look at the current process, they should work to determine the optimal turn time and process order for each of these steps. In addition, they should work to determine what steps can be done concurrently. One of the most important requirements will be setting up a process to track where the vehicle is in the process, and the amount of time that is being spent at each step. This will allow dealers to determine where the bottlenecks exist, and allow them to focus on those areas. Dealers attending my session will learn how to calculate their monthly profit loss from inefficient reconditioning processes. They will first identify their current days-to-recondition, and compare this to two leading industry averages. Attendees will also identify and learn how to implement five (5) high-impact techniques for improvement. My presentation will cover these elements and more. Dealers will leave my session prepared to perform the right analysis and set up process for success going forward.
Build Your Recall Department Into a Revenue Powerhouse
Chris Miller, President, Recall Masters
Christopher Miller's presentation will offer a blend of information and data analysis. Miller will lay out the opportunity that lies within recall management. The session is interactive, soliciting the participation of attendees to paint scenarios that dealers are challenged with. Miller will offer a wide range of solutions along with showcasing dealer case studies that lead to enhance revenue and customer satisfaction.