APD has launched ProfitPlanner+, a new budgeting and forecasting software system that integrates and streamlines data between OEMs and dealer networks.
The automotive business management services firm believes the biggest threat to an OEMs dealer network comes from an inability to view the financial picture across the entire network accurately, support dealer's viability and to recognise and react to market changes quickly enough.
John Waring, CEO at APD, said: “Increasing efficiencies to drive profitability should be top of all organisations' priorities over the next 12 months and beyond, as we are likely to see a less active and a more distressed market than we have witnessed over the last two years.
“Dealerships will need to be more proactive and effective in their sales process to generate footfall and increase the percentage of sales and added value products and services. Similarly, they will need to become more effective in managing existing customers, reviewing their retention strategy for sales and aftersales.
“Managing new and used car stock will also require more precise forecasting to ensure the pendulum doesn’t swing too far in the opposite direction. Clear KPI’s that deliver two-way reporting and communication between OEMs and dealers is the best way to achieve continued profitability in an uncertain market.”
ProfitPlanner+ is available worldwide, which enables global organisations to gain an accurate overview of market, region and dealer budget projections and aftersales opportunities and measure performance more efficiently across an international network.
APD believes 2023 will be a “tough year” for the automotive industry, as the cost of living crisis, fuel prices and rising interest rates have already started to dampen the market, and the introduction of agency models may further impact dealer’s sales volume or supply of used stock as seen in some early adopter markets.
Software-driven transformation is expected to help connectivity-embracing OEMs in automotive gain 9% higher market share on average than their peers.
A report from the Capgemini Research Institute, ‘Next Destination: Software — How automotive OEMs can harness the potential of software-driven transformation,’ highlights how software-driven transformation is expected to deliver benefits for automotive OEMs in the next five years, such as such as improving productivity up to 40%, reducing costs by 37%, and improving customer satisfaction by 23%.