When it comes to your lot, there are tons of decisions that you need to make regarding your business model and ability to acquire, manage, and sell cars. Whether you are a seasoned dealer or new to the game, you’ll want to take the time to ensure your choices related to systems and solutions are in the best interest of your operational goals. Specifically for the automotive industry, it is critical that you select the correct software tools for your dealership. As you examine the possibilities for an inventory management system, you’ll want to pay close attention to these key factors.
First and foremost, every dealership today needs to be hyper-focused on aged inventory. In basic terms, aged inventory applies to cars that are in low demand and aren’t moving quickly off your lot. These vehicles tend to pose issues for automotive retail operations because they impact your bottom line. As capital gets tied up in unsold automobiles, expenses will add up and shrink profit margins. Having a next-generation solution for inventory management helps alleviate these headaches by offering insights and visibility into pricing, merchandising, and selling inventory at all levels.
So, how does a proper inventory management solution handle these situations? One factor that directly impacts your ability to manage aged inventory and improve the time on your lot is a solution’s ease of use. You want a tool that is intuitive, forward-thinking, and can scale to meet your operational needs. Particularly for automotive retail in 2023, an inventory management solution’s ability to be flexible allows complete visibility into what’s on your lot by providing clean data and next-level competitive information to drive decisions. You move from guessing with gut reactions, and instead, make informed conclusions based on real-time industry trends.
Beyond that, your inventory management solution needs to bring you value and transparency. Too many solutions are bloated and will bog down your operations. Especially when you are considering the impact of aged inventory on your lot, you need a solution that delivers the ability to hold more gross on every transaction. A next-generation inventory management system should empower your dealership by giving you insights into your lot as opposed to restricting your ability to make powerful decisions to move your metal. You need a solution designed for your success, not just for the unnecessary purpose of completing an out-of-date dealership tech stack.
Finally, when selecting an inventory management solution, consider a system that seamlessly integrates with other vendors and tools. The ability to play ball with others is an invaluable trait needed for your dealership’s success. When united, your inventory management solution should amplify the power of your other tools to help your dealership break free from the pack. This collaboration makes you more powerful while providing opportunities for consumers to shop better, buy more confidently, and get on with their day.
As we navigate the early part of 2023, it’s critical that you put yourself on the path to experience peak performance. No longer should you be left to guess about how to deal with aged inventory. Instead, move beyond guessing with your gut and integrate data that helps your dealership make powerful operational decisions.
Your inventory management solution should be an ally as you look to conquer and own your used car market in 2023. Data empowers your decisions, gives visibility into the darkest corners of your inventory, and enhances your ability to acquire, manage, and sell like never before.
It may seem troublesome to make large-scale software solutions if you have been utilizing a tech stack that you deployed years ago. But fear not. MAX Digital’s next-generation solution for inventory management brings an unparalleled focus to your dealership by illuminating every aspect of your lot.
In the end, you gain a greater understanding of your vehicles while learning how to best handle aged inventory. With so many issues troubling the used car market today, it’s important that you make informed decisions about your lot based on actual data. If you are considering updating your system for inventory management, then look no further than MAX Digital. Schedule your free consultation today and discover all the ways MAX can help you break away from the pack in 2023.