Over the next five months, P&A Magazine will be profiling companies within our industry that connect providers, administrators, and dealers. We will be discussing where we are today, what tomorrow looks like, and what it means for the players.

The reality of interconnectivity between a dealer’s DMS system and those that provide goods and services to the dealership has been slow to evolve. When PC’s began to replace the old “green screens” in dealerships around the turn of the century, the genesis of the current revolution began.

Surprisingly, it was not the dealers that demanded greater efficiencies and better processes, but rather software developers that saw the true value of the dealer’s data and the potential for the efficiencies they could create, even when the dealer was slow to recognize this fact.

The software solutions and integration strategies becoming ubiquitous today in dealerships are not the result of truly unique or groundbreaking cutting-edge technologies. It is simply our industry catching up to the benefits enjoyed by other industries.

Part I: The Connected Industry

For the first installment of our multi-part series, P&A will be profiling two companies that are at the forefront of integrating providers and administrators with dealerships: F&I Administration Solutions (F&I Admin) and StoneEagle. We will be exploring the internal processes they support, how they connect to dealers and third parties, and what the future looks like as the adoption of integrated technology evolves in our industry.

Connecting Internal Processes

The reason why we need to start by looking at internal processes is because the end result, at some point in the near future, needs to be a totally paperless end-to-end transaction process. Eliminating single points of failure (errors) and tedium in the back offices throughout the work flow is critical.

Why? Incorrectly rate a contract and it costs someone either money, customer satisfaction, or a lost sale (and possibly all three). Dealers that slow-walk remittance hold up agent commissions and harm the agent’s cash flow. The whole claims process, from origination, to payment, to inspections, to looking up parts costs, needs to be smoothly integrated, or again, it costs time and money. On the flip side, creating administration efficiencies for dealers and providers can save money, either through allowing volume growth without the need to hire, or by redeploying/reducing head count.

The good news is, innovators like F&I Admin and StoneEagle are diligently working towards that ideal paperless work flow, where efficiencies can be measured in cold hard cash for the participants.

Both F&I Admin and StoneEagle provide comprehensive end-to-end solutions supporting the administration of VSC, GAP, pre-paid maintenance, etch, tire and wheel, and other F&I products. Nothing other than a computer with internet access is required of their customers. Users benefit from extensive security, reliable data processing, and intuitive reporting.

F&I Admin’s SCS Auto platform is a fully integrated, web-based solution consisting of modules that are specifically designed to support each F&I product. StoneEagle’s SEcureARCH system boasts minimal maintenance and support costs and multiple hosting solutions. Both companies’ products support claims processing and automated claims payment, interfaces for dealers and agents, integration to third party applications through web services (more on this later), and integration to the leading DMS providers.

Connecting Dealers and Third Parties

Connecting providers and administrators with dealers through the aforementioned integration is the key ingredient that makes the whole process work. Nothing is more critical to achieving the end-to-end paperless transaction process than integration across a myriad of disparate platforms. Let’s explore the current state of integration as it exists today.

F&I Admin is currently connected to 19 different selling systems, all of whom are connected through the same standard interface. This means that any change in the admin system will immediately be reflected through the third party software. This way, rates and contracts are managed in the administration system ONLY, so no additional administration is necessary to support the next third-party selling system. The benefit? Agents can focus on selling product, not software, because, for the most part, a dealer is connected electronically no matter what system they are using.

Incorporating the dealership into the integration mix is F&I Admin’s “DAP” dealer administration system. DAP is branded as the administrator’s website and is where the dealer can get and save quotes, print contracts, get reports, do online remittance, and more. All of this is directly connected to the administration system so the administrator will never have to enter something again that the dealer has already entered.

Of course, DAP is integrated with the dealer’s DMS. Double data entry at the dealership level is significantly reduced when the business manager does not have to re-enter information already contained in another system. Multi-level integration like this will allow more time for selling product by relieving the overburdened business managers from onerous clerical duties. Even more important, many of these duties are performed while the customer is taking delivery and everyone is pressed for time. Eliminating mistakes here and allowing the process to flow smoothly will make a more stress free and enjoyable experience for all.

StoneEagle provides a scalable web service called SEcureIntegration to F&I menu providers, bi-weekly payment providers, third party administrators, aftermarket product providers, OEMS, and additional approved third party service providers. SEcureIntegration enables a real-time bridge between these applications and the DMS to eliminate errors associated with duplicate data entry and speeds up processes within the F&I department.

Creating efficiencies by connecting to third party dealer systems is a common theme with both companies, and significant success has been achieved with Menus and DMS systems, but what about other connectivity options? There are also credit card processing solutions for claims, VIN decoding systems, and systems that provide parts identification and values, among others. These third party connections must be facilitated for our goal of an end-to-end solution to reach fruition. As you will see below, companies are already experiencing the benefits of integration from these areas too, and are saving money.

F&I Admin is connected to the Wright Express credit card processing system to streamline the claims payment process. Payments are initiated within the claim screen, a unique card number is generated by Wright Express, and a fax is sent to the dealer. The dealer then processes the credit card and Wright Express returns a file each night of the payments made. F&I Admin’s system automatically reconciles the payments made within the system and each morning the provider only needs to follow up on exceptions, of which there are generally none.

F&I Admin expects to process over $50 million in claims through their system this year. Each of their VSC customers has redeployed on average two people because of the efficiencies this represents – clearly offering absolute and direct savings to its customers.

Further supporting the contracting and claims process, both F&I Admin and StoneEagle are connected to VIN decoding systems and parts identification and value data bases. One development still on the horizon is to get deeper data from the VIN decoding, allowing the provider to identify a vehicle more completely when in for a claim. If the VIN decoder can provide an even more sophisticated level of data to account for things like factory or aftermarket installed sunroofs, the claims process could be a lot sharper.

StoneEagle integrates with Warranty Inspection Services, Southwest Inspections, and Carr Appraisals. Integration to each of these providers allows SEcureARCH users to submit inspection requests, receive alerts when inspections have been completed, and receive links to completed reports all directly from within the SEcureARCH system.

Integrated Technology and the Future

If there is a theme among the “integrators” that will connect providers, administrators, and dealers as well as third parties, it is that some form of open architecture will be necessary. The interested parties need to start demanding that no limitations be placed on the ability to share, manipulate, and manage data. This will only be accomplished when there is a common “language” integrators and software developers can work from.

We are beginning to see the benefits of common platforms with open architecture. F&I Admin, as mentioned earlier, has created a common integration point to their SCS Auto that is easy for anyone to connect to and serves all systems equally for all data requirements within the dealers’ world. StoneEagle’s SEcureARCH allows third party vendors to integrate with ARCH on their own schedule.

Looking towards that future, for F&I Admin it is facilitating the inspection ordering process and access to refurbished parts databases. Keeping the inspection ordering process, forms, data, and photographs all on one system will eliminate multiple data entry points and provide notification when the inspection is complete.

The ability to offer refurbished parts prices alongside OEM parts in one system will provide more efficiencies and cost savings to the claims process. Currently these processes are done on the phone or through individual websites that require significant data entry and time.

Another peek into the future is to provide real time data through mobile devices such as smart phones. Mobile apps, branded as the provider’s applications, delivering real time data to all constituents in the F&I industry – providers, agents, customers, and dealers – would be a very powerful tool.

F&I Admin and StoneEagle offer one very important thing that most providers, dealers and agents may not even realize. These two companies are highly adaptable and listen to their customers. They understand that changing a dealer’s process is not the best solution when asking users to take advantage of their technology. Their forte is providing turn-key solutions and customizing platforms to fit precisely the way the dealer and the provider does business.

There are processes that are still not connected to third party providers and with some that are connected, there is still so much more that can be done. For example, inspection companies, refurbished and OEM part providers, DMS providers and deeper VIN decoding could all be better integrated within the industry. This is where we as an industry need to encourage, persuade, cajole, and dare we say demand that the integrated work flow becomes a reality. Our future profits and survival in a super competitive environment leave little room for argument.

Our industry is racing ahead toward a truly integrated and connected environment where data is accessible and can be manipulated across multiple platforms with ease. This will free up our human resources to spend more time taking care of our customers, innovating, generating more cash flow, and ultimately increasing the profitability of our organizations.

Today’s vehicles are rapidly increasing in complexity and are loaded with sophisticated technology. Compare a similarly equipped vehicle from as recent as ten years ago with a current model of the same brand, and no one could argue that there is considerably more value (read technological improvements in safety, performance, content, and economy) for what amounts to very little extra cost.

The “deal” just keeps getting better and better for the consumer.

Take that same model today and equip it with the package that has everything: touch screen and/or voice activated navigation and entertainment/communication control system, rear seat entertainment system, speed sensitive rain sensing windshield wipers, heated and/or cooled seats, adaptive cruise control, lane departure warning system, back up camera system, automatic parallel parking system, dynamic vehicle stability control, intelligent brake assist, smart key fob with start/unlock/alarm functionality, GPS telematics, 2,000 watt 16 speaker AM-FM-CD-Bluetooth-USB-iPod-Sirius/XM audio systems…the list goes on and on.

Add lithium battery packs, electric motors, regenerative braking systems, DC/DC converters, voltage control units, charging systems with cables and connectors found on hybrid vehicles, and we are describing a new species, not just the same animal as ten years ago.

We spoke to dealers, F&I managers, general agents, and service contract providers and asked a simple question: over the last five years, have premiums for the top level vehicle service contracts that you sell gone down in price, stayed relatively the same, or gone up? The consensus was that the premiums have stayed relatively the same. Admittedly this was not a scientific survey, but the respondents were universally consistent. Hmmm…this requires further analysis.

If the consumer is happy to “pay to play” and purchases the vehicle described above, while willingly paying extra to do so, why are vehicle service contract premiums that cover “everything” cost about the same as they did before all this extra content, complexity, and technology materialized on our vehicles?

Is the vehicle service contract industry supply chain keeping pace with vehicle technology as it relates to risk, claims handling, and pricing? Let’s take a closer look.

Risk

We were intrigued by a recent conversation with a second-generation Ford dealer. His fixed operations business has dramatically changed in the last few years, mostly due to the fact that there is so little warranty work available. His store’s entire focus is now on customer pay labor, scheduled maintenance, and his wholesale parts business.

“What happened to all the warranty work, the cars don’t break down anymore?” we asked. His reply was that he would be out of business if he relied upon factory warranty work. In spite of all the high-tech content present in even the least expensive model, the likelihood of a breakdown while still under the factory warranty was extremely low.

The dealer went on to say that with a completely new model in the first year of its release, you could expect some problems now and then, but overall, the expectation is that waiting for vehicles still under the manufacturer’s warranty to come in “on the hook” is a game for fools. New model problems are sorted out very quickly in subsequent years or do not materialize at all. One could conclude then, that as technology advances, so does reliability.

According to the Ford dealer, reliability does extend beyond the factory warranty, but not to the extent that the customer pay for labor after 36 months is absent. There is plenty of business, he says, when components fail and must be paid for by the customer or a service contract provider.

There is another shoe that might drop, however. Did you notice in the description of tech features above how many times the word “system” was used? “System” sounds complicated. And expensive. In the old days, cruise control consisted of an actuator, solenoid valves, a vacuum hose and tank, switchgear, and a few cables to maintain a set speed. Troubleshooting why the cruise control doesn’t cruise was pretty simple and a repair was expected to be inexpensive.

Now try to troubleshoot an “adaptive cruise control” system that doesn’t cruise and what do we have? Radar sensors, computer modules, cam bus wiring, sophisticated switchgear, and a tech that performs diagnostics first, and then starts swapping out parts until the trouble codes go away. Then we check to see if the cruise control cruises.

If the manufacturer’s warranty has expired and the vehicle belongs to an extended service contact holder, does the underwriter have more exposure on today’s computerized whiz-bang systems or yesterday’s cranks and pulleys? This brings us to the next step in the supply chain, the claims handling process.

Claims Handling

Staying with the above example, your dealer client identifies a VSC holder’s adaptive cruise control system required a one hour diagnosis to determine that the vehicle needs a new radar sensor ($2,000) and cruise control module ($240). The sensor is not in stock (who is going to stock a $2,000 part?) and must be ordered. It will take three days to arrive so a rental car must be provided as stipulated in the contract. Do we send an inspector to the dealership for this repair to validate the tech’s diagnosis?

There are no broken bits to take pictures of, the cruise control just doesn’t work as advertised. Are inspectors even familiar with the workings of adaptive cruise control systems that utilize a radar sensor to maintain a safe following distance? Is there any kind of ongoing training or certification for inspectors to stay current on the rising tide of steadily advancing technology?

In this example, we are already well past the premium reserved on the policy on just this one repair. When we asked administrators if they have prepared themselves to handle situations like this (specifically on an advanced, modern cruise control system), most reluctantly admitted they were not. Particularly as it pertains to pricing…

Pricing

As stated earlier, VSC premiums have generally not risen relative to the escalating high-tech content found in today’s vehicles based on our informal survey question. Further, some administrators admitted that they have not adjusted their premiums to account for what most undoubtedly are higher repair costs.

Although some providers have a “high tech” surcharge that covers components like nav systems and the like, high-tech surcharges are not ubiquitous. Why? If certain consumers are willing to pay a premium for a feature-laden vehicle, it stands to reason that they would pay a premium for a service contract that covered all of their high-tech options.

Consumers are already conditioned to pay surcharges for lower deductibles, turbo and supercharging, diesel engines, and four wheel/all wheel drive. Perhaps we should consider a higher premium for an all-inclusive VSC to reduce our risk, or offer a surcharge option to upgrade to the all-inclusive like some providers are already doing.

Consumers also like choices, so this could be handled at the point of sale. The worst thing that could happen would be for the consumer to not have been offered an option to upgrade, and then be told in the service drive, after spending $2,000 for a service contract, “Sorry, it’s not covered.”

There is a delicate balance between price, adoption rates, coverage, and profit that each of us, as providers and administrators, must calculate and adjust. Let’s hope we have made the adjustment when we have to replace one of those $2,000 radar sensors…

Everyone in the supply chain, from the provider to the consumer, benefits from immediate access to information. The popularity of smartphones and tablets has created a whole new platform to reach the consumer through the proliferation of mobile apps. First, let’s take a brief look at how the OEM’s are embracing mobile apps, then we will explore how providers and administrators are already beginning to innovate.

Today, the smartphone has changed the information landscape in ways no one could have dreamed of as recently as the 1990′s. The single most appealing aspect of a smartphone for a business and the potential to connect with its customers is the fact that the device goes everywhere with the user. As the cell phone morphs from a voice communication device into a personal information portal, how can we capitalize on this trend and bring more value to our customers?

Ford has been a trailblazer with the launch of AppLink, which allows SYNC users hands-free voice activation of mobile apps like Pandora. Mercedes Benz’s mbrace allows users to interact remotely with their vehicles using the iPhone and Blackberry for such things as remote door lock/unlock, vehicle finder, concierge services, and contact assistance for roadside assistance, customer service, and their financial client care center.

OEM’s like Porsche and Kia are using mobile apps for marketing. Porsche has a mobile app that provides information on the Pamanera, while Kia has not developed its own branded mobile app but advertises through third parties within other apps. Ford and Mercedes Benz, by delivering mobile apps that interact with the vehicle and provide useful services, may be better positioned to capitalize on this burgeoning technology because only 10% of users think ads on mobile devices are acceptable.

If a mobile app is a better website and is a clever answer to the question, “Who is going to type in lengthy URL’s into a smartphone?,” a mobile app is just like a “favorite” or a “bookmark.” Mobile app developers are combining information and functionality, not just in the smartphone, but within the vehicle itself by the use of third-party apps rendered via smartphones into the vehicle head unit. OEM’s like Hyundai, with its monitored telematics solution BlueLink, Ford’s Focus Electric and the Nissan Leaf are hosting connected services directly into the head unit as native apps.

Mobile apps, whether accessed from a smartphone or a tablet, offer opportunities for the provider or administrator to connect with its supply chain. “Communication through mobile devices is becoming an integral requirement for most businesses and this part of the auto industry is no exception,” states David Trinder, CEO of F&I Admin.

Connecting administrators and consumers through mobile apps can provide information to VSC contract holders to better maintain their vehicles. Allstate Dealer Services, through their mobile app CarMor Vehicle Care Center, offers consumers free access to manufacturer’s recommended maintenance schedules, recall alerts, a vehicle maintenance log, details of the service agreement, and dealer contact information.

The apps are free, easy to download, and are accessible from the smartphone or tablet “desktop.” Once in the application, while browsing through, for example scheduled maintenance, the user may find coupons and specials that apply to the next service. This increases the likelihood of a visit to the selling dealer. The possibilities for marketing tires, quick lane service, and other accessories and services through the mobile app are limitless and dovetail nicely with the dealer’s fixed operation retention efforts.

The possibilities for mobile apps to connect administrators with inspectors, agents, and dealerships are just over the horizon. F&I Admin’s innovative leap into this arena is just the start of what will surely be a growth sector within our industry. The company maintains that as an F&I administration solutions provider, it is crucial that they deliver the latest technologies and capabilities. Trinder sums it up by saying, “Providing mobile solutions is imperative if the intention is to provide the tools you need, the connections you need, and a system that helps you grow your business and build efficiencies in every way possible.”

These devices and applications could expose pertinent data that are contained in a variety of repositories to users. “Imagine the value to agents and other field staff,” says Trinder, “when the provider delivers mobile access to updated contract information, sales production reports, and territory analysis.”

Agents play a huge role for providers as an independent, indirect sales force. Supporting agents with real-time analytics and tools to help them understand the dealer’s activity keeps both parties on the same page and will improve customer service. Better customer service for the agent and dealership generally results in higher revenues for the provider.

Implementing mobile devices and applications is an inevitable technology solution for insurers. F&I Admin’s COO, Kumar Kathinokkula, told P&A, “Just as system integration and industry standardization provide significant efficiencies for providers and administrators, mobile devices and applications bring about efficiencies in business processes and administration through immediate access to information.”

The potential efficiencies of utilizing mobile apps which Kumar speaks of regarding business processes has not translated yet into marketing and sales in our vertical. An interesting quote from Jim Stogdill, writing for a website about emerging technologies, reads: “You aren’t buying a computer when you buy an iPad, you are buying a 16GB Wal-Mart store shelf that fits on your lap…and Apple got you to pay for the building.”

Substituting the name of your company for Wal-Mart in the above quote raises some interesting possibilities. Since many mobile apps are really web pages without URL’s, is there a way to monetize them? What about a mobile app that offers answers to FAQ’s a consumer may have about vehicle service contracts, then asks them to select which brand of vehicle they are contemplating purchasing? The app then directs the consumer to the nearest dealership selling that brand, and coincidentally sells your products. Would a dealer pay for that lead?

We are seeing just the tip of the iceberg today with mobile apps. Major vehicle manufacturers like Ford, Mercedes Benz and Porsche, and content providers like YouTube, Pandora, and Twitter, are working feverishly to meld hand-held devices with content, services, and marketing. The vehicular mobile app landscape is in its infancy, and innovators within our own community are already exploring the opportunities that this exciting technology has to offer.

As F&I product providers and administrators continually work to improve and streamline their operations, technology solutions are driving the latest evolutions in the industry. Patrick DeMarco, president of Ristken Software Services, spoke with P&A Magazine about the technological advances he’s seen in the past few years and Ristken’s efforts to lead the way in the future.

Q. How do you add value to your clients?

We consider ourselves a technology service provider, which powers the forward-facing agenda of our customers. We have two elements to our business: our service application business (F&I menu and F&I reporting) and our e-business solutions. We take our customers’ process and technology requirements as they relate to e-rating, e-contracting and e-remittance and build an appropriate e-business solution. While there are elements of each customers’ solution that are similar, much of it is customized and driven by what our customers want to provide their dealers.

Q. Looking back over the past few years, how have your processes changed?

Our processes have evolved because the markets evolved and our customers’ needs for technology have changed. The appetite and requirements for technology to drive a dealership’s business and a service provider’s business has grown and evolved. Technology is so much more relevant in the dealership today.

We’ve gone from essentially providing applications like menu and reporting tools to being more partner driven. We take our customers’ business needs, apply our technology solutions and make them more efficient in their operation. We’ve obviously had to grow and make improvements to our technology.

Q. Looking forward, what changes do you see in the near future?

We’re going to continue to see the requirements for technology continue to grow. Providers and administrators are going to demand more robust, efficient solutions and technology will have to be taken to another level to meet those needs. I only see growth and greater appetites for bringing new technology to dealerships.

Fortunately, we are now seeing great acceptance at the dealership level for technological advancements. Dealerships are showing that they have the ability to change culturally from paper forms to electronic forms. Dealers have not only accepted, but, in many cases, really embraced new technology.

Q. Ristken has been developing product rates, electronic forms and electronic remittance for a couple of years now. Have there been any challenges in the evolution of e-business services?

We definitely encountered some pitfalls. There’s a bit of customization to what each provider wants to do, so scalability is challenging at times. You can’t build something for Service Provider A and rubber stamp it for everyone else to use.

Some of the biggest challenges have involved understanding customers’ requirements and business processes and truly becoming an integrated partner with our customers. Building an appropriate e-business solution requires us to understand their needs and how they want to service their dealers.

We’ve also had to get our clients to understand what integration is and to start looking beyond the basic menu with some sort of electronic rates attached, which everybody has. The e-business solutions that we’ve built can be used with our menu or they can be used as a standalone system. The dealerships don’t have to use our menu and they don’t even have to be sold in F&I. For example, they can be sold in the service drive. There’s been a need for education in the marketplace to try to differentiate how we handle e-business and how we build it and how we work with our customers. The message is definitely getting through as we have seen a surge in demand for our e-business solutions just in the last quarter. Companies are understanding that they need these types of solutions to stay competitive.

For service providers, this is not their core focus. A lot of them decide they’re going to build their own e-business and host their own forms and there’s a lot more to it than they might think. We try to educate them about the issues they really have to consider. The following are important questions that must be asked: Are you building a system that your dealers will actually use? Do they have to use it with certain menu providers?

Q. Compare the efficiency of development and the ability to consume technology related to e-rating, e-contracting and e-remittance.

E-rating is the easiest for service providers to get their arms around because it can be viewed as an iterative process. We’re starting to see strong evolution from paper rate books to an electronic format regardless of whether that is integrated into a menu application or on a standalone system. The process of making service providers’ rates available to the dealer electronically is most prevalent right now.

The electronic contracting piece is interesting because it has gone in a couple different directions. There are service providers who say “we’ve got our own forms library and anybody who wants to electronically contract can do that and we can do it ourselves.” A company like Ristken can either build an entire back-end e-business solution and host all forms or build web services that allow our system to communicate directly with the service provider.

We’re starting to see more and more e-contracting and dealers are becoming more accepting because there are efficiencies realized both at the dealership level and service provider level. Ford has been out in front and other OEMs are starting to take initiatives. A lot of them have it on the retail contract side, but then they don’t necessarily have it on the F&I product side.

E-remittance is different because many providers don’t have a system set up to be able to accept electronic remittance. This functionality requires some business intelligence and business process about how exactly the provider wants these forms remitted. For example, what constitutes a finalized contract? Quite frankly, a lot of service providers are not technically able to receive electronic remittance at this point. Right now, it’s often a hybrid: they may do full electronic rating and contracting and their remittance is still manual. I anticipate that in the next 24 months – and hopefully even sooner – we’re not going to be having these conversations and everyone is going to be paperless. We’re not going to be sitting here in five years talking about printing out contracts and using the mail or a fax machine.

Q. Are dealers on board with e-remittance if service providers could accept it?

If you build a system in which there is ease of use at the dealership level, they will use it. Dealers are thriving and seeing efficiencies in their business operations because of e-business initiatives, whether it’s just e-rating or the full gamut of rating, contracting and remittance. I don’t anticipate that that’s going to do anything but grow. Dealers, if provided the opportunity to sell a service product that they can electronically rate, electronically contract and electronically remit, they’re going to lean toward selling those products rather than the products of a service provider that doesn’t offer those types of technologies. I think it’s becoming the competitive nature of the marketplace that service providers that are able to provide those types of efficiencies are ultimately going to win.

Q. How do you see mobile technology fitting in to menu and reporting applications?

Mobile technology is definitely something to pay attention to. We’re currently working on some applications related to reporting, so I absolutely think you’re going to see growth along the lines of mobile devices and mobile applications. What mobile devices can do today versus 12 months ago is amazing.

The applications we’re working on will allow an F&I manager or dealer to review any reports that we have via our F&I reporting tool on their smart phone. The industry is starting to realize that tomorrow’s F&I manager is sitting in a college dormitory right now and will never accept the current technologies that are provided in the F&I office of a dealership.

Q. Where do you see the business of menu and reporting evolving?

There are two parts to this answer that are interconnected. The first consideration is the business of menu and reporting as it relates to DMS integration. If you’re not in a certified program with a DMS provider, then your applications and your ability to have consistent delivery to your customers (i.e., service providers or dealers) is going to be jeopardized. The certification of the DMS is going to be critical to the ability to deliver a consistent application to dealers. Back-door integration can put customers in jeopardy and the companies using that approach are going to be short-lived in the industry.

The second piece in this evolution is a greater focus on the reporting aspect and the ability for service providers and dealers to use reports in a way that we can better drive the operations of their business. Menus have become more of a commodity because you either believe in the menu selling process or you don’t and you either put that process in place or you don’t. I think dealers and service providers are going to require any vendor to provide a full, comprehensive F&I reporting system whether a menu is in place or not.

NAC has hired two new employees to join the Westerville, Ohio-based provider and administrator of vehicle service contracts and ancillary products.

Paul Leary is the national sales manager/strategic relationship manager. Previously, he was national sales director/business development leader for Warranty Solutions. Leary’s new duties with NAC include working with agents in the western United States and building on NAC’s recent expansion initiative.

Henry Paoli is the national business development manager. He has served as the southeastern United States regional sales manager for Warranty Solutions. Paoli’s new duties with NAC include managing agents in Ohio and Michigan, recruiting new agents and focusing on current client relationships.

CHICAGO – Resource Automotive, Inc., a unit of The Warranty Group, Inc., announced that Charlie Robinson has been named President and COO of Resource Automotive, with responsibility for all North American automotive segments including Resource Dealer Group, First Extended Service Corporation, reinsurance, BDC and national accounts and sales.

“Charlie has been with Resource Automotive for 24 years in various positions, including president of Resource Dealer Group, and he has made a positive impact for our company and for our customers with each assignment,”said Mike Frosch, president of North America for The Warranty Group.

In addition to his tenure at Resource, Robinson spent four years as an executive at Asbury Automotive, where he served as vice president of financial services.

Resource Automotive, established in 1964, is a global provider of automotive financial services products and programs, including vehicle service contracts, GAP, pre-paid maintenance, used vehicle certification, inventory management and a wide range of participation options.