SOUTHFIELD – Open Dealer Exchange, LLC, announced a partnership for integration with VW Credit, Inc., the captive finance company which provides financial products and services specifically to Volkswagen and Audi dealers and their customers throughout the U.S.

The partnership includes processing credit application and contract data within the dealer management system (DMS) as part of VCI’s FinanceSource™ dealer program. The FinanceSource program allows VCI and various dealer service providers (DSPs)—like ADP Dealer Services, Inc. and The Reynolds and Reynolds Company—to streamline the F&I process within the DMS to expedite application processing and ensure accurate and validated contracts.

“This integrated solution will help our dealers improve profitability and the overall sales experience by creating a more efficient and smooth funding process,” said David Wicks, Vice President of Sales and Marketing for VCI.

Successful pilot programs with Audi and Volkswagen dealers using ADP and Reynolds and Reynolds systems in California and Massachusetts have showed promising results. Full dealer rollouts will continue on a state-by-state basis over the next 24 months.

“Open Dealer Exchange is proud to partner with an industry leader like VCI to provide technology solutions that allow the dealer and lender to interact seamlessly within the DMS. There’s no need for their dealers to ever leave the DMS in the first place,” said Steve Luyckx, General Manager for Open Dealer Exchange.

“And, with our solutions, a dealer doesn’t have to worry about the integration costs associated with third-party portals that go outside their normal workflow.”

Open Dealer Exchange, founded in 2009 as a joint venture between ADP Dealer Services and Reynolds and Reynolds, integrates a finance source or F&I product provider directly within an auto dealership’s DMS.

By eliminating the need for dealers to log into multiple systems or re-key data into various applications during a vehicle sale, this innovative process results in increased operational efficiencies, reduced contract errors and a more streamlined process with a lender or provider’s franchised dealerships.

In this issue the View From The Top takes us into the IT arena. As technology continues to move e-contracting forward, Ron Greer, Vice President of Provider Exchange Network shares an in-depth analysis of their company and solutions they offer.

Please briefly describe what PEN does.

For clarity, it is easier to begin by explaining what we aren’t. Provider Exchange Network [PEN] is not a dealer software provider; instead, we seamlessly enable electronic contracting for F&I products. PEN helps providers and administrators conduct e-commerce with their dealership partners by allowing them to interact directly within the dealer management system (DMS). Our patent pending interface sits within the DMS – it’s not a third-party dealer software – and allows providers to present and rate products, prepare contracts and deliver bookable contract data that can be electronically accepted into their systems. Providers can “integrate to one” and be done.

What is the relationship between PEN and Open Dealer Exchange? How do they work together?

Open Dealer Exchange, LLC is our parent company, founded in 2009 as a joint venture between ADP Dealer Services, Inc. and The Reynolds and Reynolds Company. PEN is a division of Open Dealer Exchange created specifically to manage the relationship between the dealer and the provider. PEN leverages shared services of the parent company such as high availability IT infrastructure and links to the Founders’ dealer systems. PEN has its own distinct branding and market strategy tailored to our audience — providers and administrators. Open Dealer Exchange’s other division focuses on the relationship between lenders and their dealers.

What are the main benefits to a provider or administrator signing with PEN?

There are two main benefits for providers who use PEN: Increased efficiency and the ability to directly communicate with the majority of dealers in the U.S.

First, PEN offers a simplified and effective IT solution for a provider or administrator to communicate with their dealers. We offer flexible options for the provider by giving them a single integration connection that links to multiple dealer system software applications. The dealer experiences the benefits of e-contracting functions without having to purchase, learn or use specialized software.

Second, PEN works with any dealership software system that they use — whether it’s a menu, desking, CRM or most importantly, the DMS. This simplified dealership user experience results in greater dealership acceptance of new sales cycle processes because they don’t have to change their behavior when booking a deal. And when released by ADP and Reynolds and Reynolds, PEN will offer the largest footprint of dealerships available for e-contracting in the U.S.

Do dealers sign up directly with PEN?

No, dealers do not sign up directly with us. Rather, PEN serves F&I product providers and dealer service providers [DSPs], which then gives dealers the ability to rate products, print contracts and register sold contracts, all within any PEN-enabled dealer system. PEN works like a universal connection to make multiple systems work through a single interface. For example, a dealer accesses many providers through their single system. This all happens behind the scenes and the dealer is supported by their DSP. Most dealers will never know PEN.

What are the main benefits for a dealer when their providers are connected to PEN?

Dealers will see benefits in three main areas when their providers are integrated with PEN.

First, they will immediately have an accurate presentation of available products and ratings without jumping to and from other systems. That means accurate ratings the first time specific to every deal they are managing.

Next, dealers can automatically prepare and print the contract on either plain paper or in certain applications, even electronic signature. PEN also eliminates the need for pre-printed forms or forms programming. The dealer or agent no longer has to manage stacks of paper forms or worry about which ones are accurate.

Lastly, PEN ensures automatic registration of all sold contracts so the dealer does not need to re-key the deal information. Deals are sent automatically to the provider without any extra effort from the dealer. This can help boost customer satisfaction by minimizing dealership errors throughout the process as well as ensure immediate contract registration.

Our understanding is that PEN will work directly within the Reynolds& Reynolds DMS and the ADP DMS but that it is not yet available with either. When will it be available with each DMS and which versions of each DMS will it support?

Reynolds and Reynolds is expecting to release soon in three product platforms—ERA, Power and F&I Menu. DocuPad will be released later. Release plans for Canada are to be determined.

ADP already supports over 3,000 dealers on its F&I Menu platform. Core DMS integration is being developed for the current DMS platform, Drive.

By delivering the functionality you describe into the DMS, is the intention of the DMS systems to replace the menu through the PEN connectivity? If not, when would the dealer use this as opposed to using a menu?

PEN does not replace any software function within the DMS. We simply enhance the usability of the DMS by integrating products real-time into the dealer preferred process. Today, the dealer or software provider needs to maintain offline tables of products and forms, but PEN integrates them real-time. This is the single most important part of what PEN does and the reason we were created.
Electronic menus are usually closely tied to F&I e-commerce. Presenting F&I products to a customer in a sales presentation remains an essential function of any dealership selling tool. PEN specifically supports the e-commerce functions, which can be performed within an electronic menu, desking, CRM, F&I desking, or even a Service Department application.
Basically, we partner with DSPs to handle the “heavy lifting” of provider integration which allows them [DSPs] to focus more energy on improving the overall dealership experience.

What sets PEN solutions apart from other similar technology in the marketplace?

PEN’s biggest differentiator is our patent-pending Application Programming Interface [API]. Through this we can integrate our customers into any dealership software, which is something no one else in the industry can do.
We provide a universal, managed connection to the industry that works within the dealer’s existing software. Think of us like a universal power adapter…a provider integrates to PEN and then our solution connects them to all the DSPs, menu companies and other dealer software providers in the market.
Unlike commercial e-commerce portals, PEN supports common functions without the dealer having to use multiple software applications to complete a sale. It’s much easier for the dealer and it also eliminates the need and cost to transfer data between software applications.

And unlike customized integration between a provider and a dealer system, PEN simplifies the IT efforts for the provider, and ultimately the dealer systems that partner with PEN. Our API allows for most F&I product changes to be implemented in PEN with no development on the dealer system, making provider changes much easier to manage.

What does the PEN product roadmap look like? Is there functionality planned beyond simply delivering connectivity to providers and administrators?

PEN is much more than just connectivity. As a forward looking technology leader, we drive a standard approach to e-commerce that unites software of all kinds – provider systems as well as dealer systems – behind a better experience for the dealer.
Our focus over the next few years is to solidify integration and utilization with leading providers and dealer systems. Our partnerships in place today potentially connect more than 80% of franchised dealerships in the U.S. to the majority of non-captive providers. Technology and utilization initiatives will be PEN’s focus in the immediate future as the industry continues to evolve and embrace better ways of doing things.

During the next couple years, PEN is also focusing on future product integration. We currently support capabilities like electronic (or digital) signature, but unfortunately, it is in limited use at the dealership. Other initiatives such as risk-rating of all product categories, not just service contracts, and support for online remittance and reconciliation to improve upon the existing paper based process are things PEN has on our radar. We also anticipate getting additional dealer system exposure of the PEN API to other selling opportunities in the dealership such as the service drive, Business Development Center or even in the cashier’s office. Future capability to support provider integration after the sale may also help providers increase efficiency in their administration.

What challenges on the provider side has PEN encountered and how have these challenges been overcome?

Whether the root cause is financial or simply a hesitation to change, some business challenges come from the provider’s varied acceptance of e-commerce in general. PEN helps providers incorporate e-commerce into their everyday business practices because most have an eventual goal of 100% e-contracting. Providers must accept there will be a transition period where a mix of paper and electronic processes are managed.
Some technology challenges hamper a provider’s ability to expose their products through web services. PEN has assisted several providers with overcoming these hurdles through direct IT consultation.

Where do you see e-contracting and e-commerce heading in 2012 and what new products or technology do you think will affect the creation of new solutions and improvement of those already in being used?

2012 will see e-contracting move from limited acceptance into real dealer participation and demand. It’s been trending that direction for some time now and those who have embraced it are seeing its rewards. What was once limited to participating menus and provider or commercial e-contracting portals will soon be made available to the PEN network, which has access to the leading DMS and menu systems representing more than 80% of franchised dealership sales. Dealers will become more aware that these services are available and will start expecting all of their products to be integrated into their systems.
Providers will continue to improve upon the technology they use to expose products. We will see more and more products become web rated due to the widening range of risk associated with products such as Tire and Wheel, GAP and Appearance Protection.
Providers will further migrate to their own forms building service. Rather than depending on the dealer system or even PEN to prepare a contract, leading providers are already exposing their forms web services to streamline deployment and reduce the chance of errors while printing contracts at the dealership.

Electronic contracting is no longer a great idea before its time, and the progress the industry continues to make is exciting because the technology is just waiting to become the “norm”. As PEN works with our customers, and they with their customers, to further demonstrate the benefits to those throughout the auto sales cycle, the efficiencies will increase.

Our coverage of DMS integration continues with the following questions and answers from StoneEagle’s CEO Brent Allen. Brent shares an informative and candid perspective on this integral segment of the industry.

How do you describe your products to potential customers?

It’s difficult to apply a single description to our products. StoneEagle offers several products and they are quite diverse. Our Enterprise Admin Systems include a Credit Life system and SEcureARCH, our new Service Contract Admin system. SEcureARCH is a C#.Net all service oriented architecture that we believe is the future in administration systems. Our F&I sales and reporting application, SEcureMetrics, is one of the earliest reporting programs. It has been integrated to several DMS’s for over a decade and is used by thousands of dealers in the US and Canada. SEcureSalesTool is our Service Drive Sales system and can be integrated to include appointments and RO pull. It will sell multiple products, handle credit card or financing, has fully integrated e-contracting capabilities and remits sold business back to the product administrator. SEcureTransmit has been available to dealers and agents as long as our reporting tools and includes a user interface for generating a remittance register to allow any sold F&I product to be transmitted back to the administrator electronically. At NADA this year, we will be introducing Service reporting. This product will allow the dealer and servicing agent to monitor and develop very impressive income opportunities in the service department.

Traditionally, one of our most recognized services has been integration. StoneEagle has been providing integration services longer than most DMS providers have offered certified interfaces, and it is an essential part of almost all products.

When asked to describe our products, we find it just as important to describe our customer service. For the last 25 years we have made it our goal to provide the best service in the industry. We believe that the product is only as good as our ability to support it.

How did StoneEagle get into the integration business?

In the 90’s, one of our earliest business partners asked us if we could help them with administration of a product which they had been pulling from the DMS electronically. We eventually acquired their programing staff and technology as a byproduct of that initiative. Shortly thereafter, another client asked if we could produce F&I penetration reports in a timely manner by pulling data directly from the DMS. We found that creating effective F&I reports required much more effort than simply pulling data. Almost all dealers configure some part of their DMS differently. Each dealer requires “hands on” configuration for reliable results. This “hands on” knowledge eventually led to requests for properly configured data sets for many other areas of the industry. Ultimately our understanding of the inner workings of the dealership and their processes became our strongest asset for offering “best in class” service.

Which DMS providers do you work with, and what is your official status with each?

Today we offer some level of integration to the following DMS providers:

* – Dealer or DMS provider must send data to StoneEagle
** – Not currently supported, will require additional time and development charges to integrate
*** – May be possible but will require additional time and development charges
($) – Dealer may/will incur extra charges for setup, field switches or both

Considering the changes taking place in the industry today, this list is subject to change.

How do you push and pull data, and why would your solution be better than others?

Certainly we do consider the exact technology of how we push or pull data proprietary, but we do offer both functionalities to a limited number of DMS systems. Pushing data is a very tricky business. Very few companies will do it, and very few products take advantage of it. Improper pushing to the DMS can cause costly errors to the dealer. After a decade, StoneEagle has had no reported errors in our pushing process. We believe our success and longevity coupled with the innovative solutions we provide make us stand out above most other competitors.

There seems to be building controversy about DMS integration – How do you see the industry today, and where do you think it will be in the next five years?

In a previous question I pointed out that third party integration itself actually out dates the integration certification concept. Today, advancements in technology and security have caused a general movement among all DMS providers to create secure standard interface processes that require some sort of fee for access. From there, DMS providers of all sizes seem to be in one of two camps regarding integration to their systems. One camp sees product and service provider offerings as enhancements to their systems. They certainly don’t want to see an outside company cannibalize a product that they offer, but they also seem to understand that dealers will never see all services the same. These DMS providers can create reasonably priced integration tools that create a revenue stream but also stimulate the growth of technology from smaller more agile “niche product” companies. The second camp is much more guarded. They see any competing technology as a potential threat to their control of the dealer. These providers are typically difficult to deal with and offer cost prohibitive pricing for their integration tools.

The controversy today revolves around DMS providers moving to a “certified only” model where any other outside access is branded as dangerous and aggressively discouraged. Telling a dealer what he can or cannot do with his data is one issue, but forcing him to require certification is a much bigger issue for the dealer than the product providers themselves. Even a small dealer is doing business with as many as five outside product vendors. If all five are forced to certify their products and pay (for an example) $100 in fees, those fees are inevitably passed on to the dealer. At that point, the dealer is faced with not just one fee, but five fees for the same service now costing $500. The model needs to change. The dealer should be able to subscribe to the service and allow the vendors access to it. Product and service providers can compete on the merit of their systems, not the cost of their integration.

One way or the other, we think non-certified interfaces will eventually disappear over the next several years. The cost of supporting non-certified technology is going up, competition from other products is increasing, and service oriented system architecture is definitely becoming the accepted model. We just hope that DMS providers will open their systems in a way that is reasonably economical and creates a “best man wins” environment for product providers.

We don’t want to discount the issue of security. It is very important that dealers recognize the importance of their customers private information, and that it be safeguarded properly. There is a need in this industry to make sure that vendors are following all governmental and ethical rules concerning data. Proper service agreements and contractual obligations are essential. Having dealers, DMS providers and vendors work together to establish standards in this area would benefit all players without stifling business, but most importantly, it would protect the customer.

How do your current clients feel about the changes in integration?

Most of them simply feel blackmailed. They feel like they are being cornered into a position where they have to pay fees for services that have worked well for years and are now just being taken advantage of simply because the opportunity was there. Most are happy to pay for advances in technology that increase their ability to sell product. In this case, they feel like it’s simply another expense that must be passed on to the dealer who will then pass it on to the customer. Remember, we are not talking about one point of integration. We’re talking about five, 10, even 15 points of integration that can ultimately mean hundreds of dollars to the consumer.

How are you planning to re-invent your products and services to adapt for the future?

For StoneEagle, planning for the future is and always has been important. As a family owned business, we must rely on re-investing annual profits in R&D for future product and service planning. We have been preparing for the change in integration certification for a few years now. We have been re-developing old products and inventing new ones in order to capture other segments of the auto dealer market. We have certified our products with various DMS providers and are in the process of doing so with others. Re-focusing some of our efforts and resources from integration will mean terrific advances in our product offerings over the next few years.

REDMOND — Microsoft Corp. and Nissan Motor Co. Ltd. announced a strategic relationship to collaborate and create a next-generation dealer management system based on Microsoft Dynamics CRM.

The solution will utilize the Windows Azure platform, taking advantage of the economies of scale and flexibility offered by Microsoft’s public cloud offerings, according to Nissan.

“Customer loyalty and retention are essential to the success of any business. Microsoft Dynamics CRM helps businesses better understand and build deeper relationships with their customers and partners,” said Kirill Tatarinov, president, Microsoft Business Solutions.

The new DMS will initially be rolled out to Nissan’s dealership networks in Japan and other strategic regions across the globe, according to the company. The system will have the flexibility to be customized for the needs of a specific country, region or automotive manufacturer, with broader availability to be explored in the future, reported F&I and Showroom magazine.

Nissan also intends to explore how Microsoft Dynamics CRM and Windows Azure can work together as a platform to deploy applications across the company’s global network and to standardize its information architecture on the cloud, according to Nissan.

“We are delighted to be working with Microsoft to deliver the next-generation dealer management system,” said Andy Palmer, executive vice president of Nissan. “Nissan is seeking a solution that will help meet our business needs, especially to better understand our customers and dealers.”

MINNEAPOLIS – Wolters Kluwer Financial Services announced that Integrated Dealer Systems, a provider of dealer management software (DMS) for the recreational vehicle (RV) and marine industries, will integrate the Wolters Kluwer Financial Services’ AppOne® platform with its Astra G2 product.

The integration will help RV and marine dealerships manage the sales and F&I process more efficiently.

AppOne helps to automate the indirect lending, credit approval and compliance processes for vehicle dealerships and lenders. Astra G2’s Sales and F&I module helps dealers seamlessly manage and monitor every step of the sales process from prospect management through the closing.

Through a new AppOne interface in Astra G2, dealers can pull all of the needed financial data already entered into the DMS system to populate credit applications and easily submit them to lenders for approval via AppOne. This eliminates duplicate data entry, helping make the processing of loan applications faster and less error-prone.

Once submitted, dealers can also access and print Wolters Kluwer Financial Services’ state-specific Bankers Systems® loan documents, including retail installment contracts and required ancillary forms, from within AppOne.

The Bankers Systems line of documents is built upon more than 50 years of experience and is protected by Wolters Kluwer Financial Services’ limited compliance warranty.

“This relationship will allow our dealers to save time and simplify both the credit application and contract creation process,” said Grant Farrer, dealer development manager at Integrated Dealer Systems. “At the same time, we can help them connect with lending sources that are using AppOne.”

“By helping more dealerships access AppOne, our lender customers can gain peace of mind knowing that the challenges surrounding document preparation are being addressed before each loan application crosses their desk,” said Jason Marx, vice president and general manager of Indirect Lending and Mortgage at Wolters Kluwer Financial Services.

“We are excited to work with Integrated Dealer Systems and further our commitment to the recreational lending market.”

We have often been asked by our readers to do an in-depth analysis on Dealer Management System (DMS) integration. We wanted to start out by asking Open Dealer Exchange how they view DMS integration. Below is their response. Next month we’re going to hear from the others in the industry, so stay tuned.

What type of DMS Integration is right for F&I Product Providers?

By: Ron Greer

For most F&I Product Providers and Administrators, the primary sales channel is an automotive dealer, this distributed network often presents unique challenges to conducting efficient business. The F&I process is one of the most sophisticated processes to accurately transmit data between an F&I product provider and the DMS. Federal, state and county regulations, add-on services, sales campaigns, credit processes and approvals all require the integration between the DMS and the provider to be up-to-date and accurate at all times during and after the sales process. For instance, even the most well thought out F&I product and integration strategies can inevitably hamper the dealer’s network, cause system compatibility issues, and potentially place the dealer and consumer at risk if the data is not properly transmitted in a timely manner, calculated properly, validated, secured and monitored.

Those that conduct business through an automotive dealer know there are a variety of software applications used in the dealership sales process. Many applications have a specific purpose such as CRM, Sales Process and Tools, Specialized Deal Desking and more, and when used as part of the entire F&I process, each application is a critical part of a successful sale. But because each of these applications is often from a different supplier, the movement of the data, the transmission frequency and the requirement of accurate data complicates the process and, if not done in cooperation with the DMS, can cause the data flow to become disjointed.

The DMS is the system of record for all transactions stored in the DMS and transmitted to an outside F&I service. The DMS is where the forms are usually printed, where vehicle inventory is converted to customer inventory, and where the deal is sent to the accounting software. The term “DMS Integration” means a variety of things and without a full understanding of it and why it is important to the overall sales process, roadblocks continue affecting the accuracy of the data and the successful transmission for data transactions. By understanding internal needs and available options, F&I Providers and Administrators can find the right solution for their businesses.

Solutions vary based on need and circumstance, and there are three major ways for Product Providers and Administrators to conduct business more efficiently with their dealer partners, which all require some type of data exchange or integration:

• Data Interface between the DMS and other software or reporting solutions
• Forms/Contract Printing Management used in the dealership
• Transaction Integration between the Provider and the dealership

Data Interface

Moving data from the DMS to populate fields in a specialized software application has created buzz in recent years and is a requirement for the DMS to provide. Data Interface from the DMS to other software has been called by many different product names such as a Download, Certified Interface, Third Party Access, and Unsupported or “Hostile” Integration. Most major specialized software applications, such as CRM or Electronic Menus, need to make data flow between the two systems as streamlined as possible for the dealer. These specialized applications rely on accurate data to be passed from and updated to the DMS in a near real-time manner. The data needs to support the business processes defined by the application and supported by the DMS. F&I managers will not tolerate the extra work to re-key customer, vehicle and deal information, inaccurate payment and tax calculations, or bad data being transmitted into their specialized application. DMS software providers—including Automatic Data Processing (ADP), The Reynolds and Reynolds Company and other DMS providers—have developed programs to securely share data between software applications which helps to remove these obstacles.

DMS integration is becoming more and more complex due to the need for timely, reliable access to F&I data. Access to DMS data once a month, once a week or once a day does not meet the need for F&I type services. Real-time secure access is a requirement to ensure success. This type of integration has increased the risk to the dealer as well as the F&I software vendor for receiving accurate, safe and secure access if not directly received from the DMS provider. DMS providers like ADP and Reynolds and Reynolds have implemented comprehensive programs that support this type of access ensuring the dealer’s data is protected, system performance is reliable and the data transmission supports the DMS business rules.

Technical considerations for a smooth process are also significant and can only be provided successfully from the DMS provider. Mapping data to ensure that a field (such as customer name) is properly converted, state and county tax percentages are calculated correctly, rounding and payment calculations match those fields in the DMS as well as field lengths and formats between systems match all help avoid software support issues and awkward moments when data is mixed up in front of a customer during the sales process.

The entire process is complex, however, and extracting data from the DMS is just one aspect. There is also the entirely different and complicated matter of pushing data back to the DMS to complete the sales loop. This has to be done in cooperation with the DMS provider in order to assure the data of record in the DMS is accurate and secure. This data is used throughout the entire dealer’s network and therefore cannot be any risk.

The most reliable, secure and industry-supported method is a certified data interface with the DMS vendor. Programs such as Reynolds and Reynolds Certified Interface or ADP Third Party Access Program are available to certify partners who comply with the business rules and processes inherent within the DMS. These programs meet the business rules in the DMS, assuring the specific needs of the certified vendor.

A DMS approved application can also be used if the software provider has a specific need to receive a nightly “push” of data. The DMS has a “download” application that supports the dealer in moving data from the DMS to a dealer defined destination on their LAN. The data is then managed by the dealer and can be provided to any service or application provider.

In the last several years, non-certified access has been perceived as reliable, secure, low cost or even free. This type of access to the DMS requires due diligence. Because the success of accessing the DMS depends on a reliable stream of accurate data, these “hostile” integrators pose a potential risk. DMS vendors routinely change their applications and methods of access in order to support new automotive business rules and security requirements. Dealers expect these changes to be made. The “hostile” integrators have to react to these changes which may hinder the business by providing “unreliable data” and/or unexpected “breaks” in the data interface. Ask yourself, does the risk outweigh the security of a DMS certified interface?

Tip: If your dealers require a very specific business function that is only satisfied through a specialized software application, then consider leveraging a Certified Data Interface to assure safe, secure and accurate data.

Forms and Contract Printing Management

Forms and Contract Printing Management is a very common solution and a simple choice. Even today, most contracts are printed on forms stock in the dealership using what’s called an impact printer. Within the DMS there is a forms formatting program that places fixed data in defined line and column locations, as well as prompts the user for variable data that does not reside in the system. A Digital Forms Library replaces the old process whereby the Provider or Agent (forms owner) supplied a box of forms to the dealer. The dealer printed a deal, and sent it with five blank copies to their respective DMS Vendor to “program” the forms format. Multiply that process by all of the dealers a Provider does business with and the reliability of all necessary forms being updated diminishes significantly.

The technology advancement in utilizing a Digital Forms Library allows for a smoother transaction and according to Rod Allen, National Enterprise F&I Products Manager for ADP Dealer Services, there are definite benefits.

“Providers who participate in the ADP e-Forms Library indicate that they are proactive in using technology to assist dealers in improving the dealership F&I process,” Allen says.

ADP and Reynolds and Reynolds currently manage their respective libraries of digitized forms to streamline their dealer’s process. The company who owns the copyright and publishes the forms (forms owner) works directly with the DMS vendor to “push” updates to the dealer. In most cases, each dealership still requires customization, but the process is managed much more effectively upstream, reducing implementation time and increasing the chances of an accurate and timely dealer form.

Another feature of this forms library is the availability of advanced digital forms printing solutions. Dealers now have the option to have all of their F&I forms printed on laser printers, which enables a highly customizable consumer and dealer experience. This combination of software and services minimize dealer costs through paper efficiency including control over customizable page printing and printer routing. It also provides benefits such as electronic signature, deal jacket archival and the ability to email a very personalized electronic document folder to the consumer.

Connecting to the DMS Forms Library offers a single point of contact for F&I Administrators. Whether the dealer prints on traditional forms, or uses optional laser printing features, the process of maintaining accurate forms is centrally managed.

Tip: Participation in the DMS Forms Library improves the process and paves the way for future capabilities. This is usually available to Providers at no charge.

Transaction Integration

The industry has conceded that the DMS cannot be everything to everyone. It is a lot of work building and supporting a system to satisfy a diverse population of dealers. Factor in compliance to Regulatory, OEM, Lender and Provider processes and it is clear why a DMS might need to narrow the F&I Aftermarket Screen to a simple “input only” function.

It is in this arena where the game is changing and the market need was apparent. There is a third solution, commonly known as Transaction Integration, which is advancing the industry towards a seamless and secure data flow. The logic behind this integration is that the DMS could hold all functions and processes to fully complete a product sale in the F&I office, from correct ratings to e-Contracting.

Currently, F&I Managers in the dealership need to utilize various systems, portals or software tools to complete a sale. With Transaction Integration, the dealer can support full e-Contracting within the same workflow in the DMS. By using this service, a Provider can virtually eliminate the cost and overhead associated with hosting their own contracting portal.
Not only does the flow stay within one dealership software application, a Provider can also present only eligible products and coverage for a specific vehicle and customer under the conditions of the deal. This allows for an accurate point of sale experience based on specific VIN and driving conditions. A DMS that has enabled Transaction Integration can present accurate and instant product ratings, customized forms printing, electronic signatures, and deal data transfers – all within a single workflow.

In a perfect world, every dealership would use the same software applications in the same way. Today’s reality, however, is that even two F&I Managers that share a printer might utilize different software applications, differently. And as long as they both quote correct rates for eligible products that are printed on the correct contract and automatically register at the time of sale, it should be a non-issue for the Provider regarding what software solution they used. This is where the most significant benefit of Transaction Integration lies. No matter what software the dealer chooses to present F&I Products (e.g. menu, CRM, Desking), Transaction Integration can link to them all in order to complete and print the contract. Providers no longer need to incur large integration or system costs to develop custom integration to all of these systems – they can integrate to one and be done.

Tip: If the Provider is neutral on dealership software preference and only requires real-time integration to the consumer point of sale, then Transaction Integration is the emerging technology to consider.

DMS Integration is an issue that should be carefully considered by F&I Providers and Administrators, and depending on their unique needs, each option or combination of options outlined has its benefits. Regardless of which path is chosen, the end goal is to ensure a successful dealership experience that efficiently maintains the integrity of the data. As the field continues to broaden, Providers and Administrators should carefully evaluate their own needs and feel confident that there are technology tools at their fingertips to help strengthen and grow their business.