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The hard cost benefits of parking the paper chaos

The hard cost benefits of parking the paper chaos

Closer inspection of two mstore for automotive customers has revealed the substantial cost savings that can be made by reducing paper and moving to a more controlled, digital platform. In a recent webinar delivered by Arena’s Neil Maude featuring case studies from two car dealerships, approaches and benefits were outlined to provide insight for others into the case for moving from outdated paper-based workflows.

Neil outlines in the webinar how both dealerships embraced digital documents and were able to replicate their workflows in the mstore platform to create control over the key process for selling vehicles formerly managed through paper deal files. In addition, they were able to share information with the right people being able to access the right information quickly and securely. Digitisation, visibility and control are all key components of good document and process management and have been proven to create a strong foundation for improved operational efficiency in dealerships.

In the traditional, paper-based world of car dealerships, we’re used to a plethora of jacket files stuffed with documents and tick box manually operationss

In the new world that has been created in collaboration with car dealerships, the paper chaos is replaced by a user friendly digital environment mstore for automotive opens up a wealth of advantages including cost control, time savings and compliance readiness. These were the key benefits sought by the subjects of the case study webinar.

One key to the success for these dealerships was the familiarity of the way of working which ensured widespread system adoption with staff. For example, many of the options featured in the mstore for automotive platform are straight from the front of the previous paper packs. Secondly, the core platform has been extensively tailored and developed for the needs of an automotive dealership, including some organisation specific requirements. Both characteristics ensure that change is evolutionary and fit-for-purpose, and not revolutionary and disruptive to business.

Never the less, both dealerships were able to leverage several advantages including significant cost savings.

Paper filing is a direct cost to the business. Most documents in the dealership start out in a digital format such as HPi checks and DMS downloads. Avoiding the need to print these documents to store them in the deal file creates significant cost savings. As does eliminating the cost of filing in terms of jackets and boxes, as well as storage off- or on-site. Where dealerships are choosing to scan to digital archives post-deal, additional cost savings can be made.

In one example, the dealership was estimated to have eliminated 500,000 unnecessary prints per year. At a conservative cost of 0.7p per print (0.3p print costs, 0.4p paper costs), a saving of £3,500 was made. In addition, this dealership was spending £1 on every deal file jacket. So with over 10,000 deal files created annually, that’s a corresponding saving of £10,000. Finally, this dealership was conscientiously digitising the deal file on completion of the deal to create an electronic archive. The cost of post-deal document scanning is a common hidden cost in this sector. And in this instance, with 200 boxes of deal files digitised every 6 months by this dealership at £30 per 1,000 pages and 2000 pages per box, that’s an incredible saving of £24,000. Altogether, that’s £37,500 hard savings per year, just from taking paper out of the process.

Neil’s webinar provides a range of additional insights into approaches, benefits, and lessons learned from these two car dealerships. The webinar is available to view by clicking here.

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