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Suzuki is PEP-ping up its workshops’ efficiency

Wednesday 30 September 2009, 10:06

"Aftersales managers are often kept in the dark about best practice in areas such as efficiency or CSI. So we were looking for an online best practice guide." - James Richardson, Suzuki GB national aftersales manager

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Suzuki GB is working with its network of car dealers to improve the efficiency and profitability of their workshops. The manufacturer is concerned that around a quarter of the network is failing to capitalise on the potential earnings from aftersales.

It has enlisted consultancy TTL Automotive to work with its retailers and improve results. Based on TTL’s i-pop (internet performance optimisation pro-gramme) solution, a Suzuki
Performance Enhancement Pro-gramme (PEP) provides each dealer with a benchmark for aftersales KPIs and indicates how the workshop compares to those benchmarks.

James Richardson, Suzuki GB national aftersales manager, said: “We recognised that service managers have often been promoted from the shop floor by a dealer principal with a sales background who does not necessarily understand aftersales. 

“Aftersales managers are often kept in the dark about best practice in areas such as efficiency or CSI. So we were looking for an online best practice guide.

“Getting the right people following the right processes will make a successful business.”

Richardson said around 70% of the 160-strong network of Suzuki dealers and authorised repairers are using PEP to some extent. None are compelled to use it.

“Suzuki is not a “big stick” franchise, but more about working hand-in-hand in partnership with dealers,” Richardson said.

Nevertheless, Suzuki zone managers can view their dealers’ performances through the PEP, which displays below benchmark results clearly in red and strong performances in green, split by monthly, three-monthly and year-to-date results. PEP also indicates monthly improving or worsening
performance, so a decline can be discussed immediately and coaching put in place. 

PEP incorporates a toolbox, which suggests processes and best practice which can be implemented within the workshop to improve performance and aftersales managers can input their action plan for the zone manager to review and monitor progress.

For further support, TTL Automotive is running a series of regional PEP review workshops. These identify particular strong and weak areas and collect ideas to move dealers forward.

Asked what benefit Suzuki GB gets from the programme, Richardson is quite open: “We’ll sell more parts and that’s good for us, and in driving up dealers’ performance we’re helping them still be here tomorrow.”

Key efficiency drivers

  1. Labour gross profit as a percentage of retail sales (benchmark 75%)
  2. Parts gross profit as a percentage of retail sales (benchmark 22%)
  3. Retail hours sold as a percentage of total hours (benchmark 70%)
  4. Recovered rate as a percentage of retail labour rate (benchmark 80%)

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Author
Tim Rose
Deputy Editor
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