Dealership Management System
Encyclopedia
A dealership management system (DMS) is a bundled management information system
created specifically for automotive industry
car dealership
s or large equipment manufactures, such as Caterpillar Inc dealerships, and also adapted for boat, RV, and power sports dealers. These systems often contain software that cater to the needs of the finance
, sales
, parts, inventory
and administration components of running the dealership. One of their functions can be automating tax returns.
A typical DMS installation includes a central server which stores all data, allowing multi-user access for as many as 50 or more client computers. Some installations may include thin clients. Other DMS providers use a centrally-hosted, or Software as a Service
/application service provider
model.
A DMS usually offers many interfaces with other systems, particularly with systems of the manufacturer, in order to enable automatic processing of purchases, warranty claims, price lists and many other data.
In Europe many automotive manufacturers
used to prescribe a certain specific DMS to their dealers. This is however no longer officially allowed under to the so called Block Exemption Regulation
.
Management information system
A management information system provides information needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: people, technology, and information. Management information systems are distinct from other information systems in that...
created specifically for automotive industry
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
car dealership
Car dealership
A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling...
s or large equipment manufactures, such as Caterpillar Inc dealerships, and also adapted for boat, RV, and power sports dealers. These systems often contain software that cater to the needs of the finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, sales
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
, parts, inventory
Inventory
Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
and administration components of running the dealership. One of their functions can be automating tax returns.
Summary
DMS software typically includes support for all aspects of running a dealership such as:- Tracking vehicle inventory
- Tracking sales
- Finance and insurance calculations
- Menu selling systems
- Tracking customers (and customer follow up)
- Accounting
- Managing dealer website
- Calculating employee commissions
- Purchase order tracking
- Parts inventory
- Work order management
- Appointment scheduling
A typical DMS installation includes a central server which stores all data, allowing multi-user access for as many as 50 or more client computers. Some installations may include thin clients. Other DMS providers use a centrally-hosted, or Software as a Service
Software as a Service
Software as a service , sometimes referred to as "on-demand software," is a software delivery model in which software and its associated data are hosted centrally and are typically accessed by users using a thin client, normally using a web browser over the Internet.SaaS has become a common...
/application service provider
Application service provider
An application service provider is a business that provides computer-based services to customers over a network. Software offered using an ASP model is also sometimes called On-demand software or software as a service ....
model.
A DMS usually offers many interfaces with other systems, particularly with systems of the manufacturer, in order to enable automatic processing of purchases, warranty claims, price lists and many other data.
In Europe many automotive manufacturers
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....
used to prescribe a certain specific DMS to their dealers. This is however no longer officially allowed under to the so called Block Exemption Regulation
Block Exemption Regulation
Block Exemption Regulation is an exemption in a business line or industry, which debars organizations in the industry from some business activities in order to create competition. The regulation is highly known in the automobile industry due to the effect caused by the BER regulations from the...
.