By Mark Place and Carlos Mora
ar dealers perform a series of activities with the ultimate
purpose of selling vehicles and services to customers.
Automotive manufacturers face many challenges when
evaluating and optimizing the performance of their
dealership channel. Because the manufacturer does not
own its franchise-based sales
channel, it often lacks direct
visibility into the day-to-day activities of an automotive
dealership and cannot apply the same management
Merely declaring that
controls used to improve the performance of corporate operations,
the purpose of the
is to help
ealers improve does
How well can a manufacturer measure dealer behavior, discover and
communicate problems, and coordinate solutions? How effectively can
manufacturers and dealersuse this information? The automotive manufacturer
can identify low- and high-performing dealers by their bottom line, but
gaining insight into why dealers perform as they do and increasing their
performance proves to be more difficult.
the automotive industry has focused its effort on improving
manufacturing efficiency from both a financial and operational perspective.
As a result o f this focus, auto manufacturers have implemented more
sophisticated systems to evaluate plant-level and internal corporate activities,
An automotive manufacturer may evaluate dealerships for certification
purposes but may struggle to maximize the effectiveness of these programs.
A Web-based dealer scorecard can track metrics, such as first fixed visit
(FFV) or customer satisfaction index (CSI)
I, and provide more visibility into
dealership activities. A competently implemented dealer scorecard provides
many well-known technology-based benefits For example the scorecard
provides a single version of truth, in which both the dealer and manufacturer
obtain a valid picture of where the dealership stands in terms of the key
metrics. Any scorecard application must provide these basic benefits.