SOUTHFIELD – Provider Exchange Network (PEN), a division of Open Dealer Exchange, LLC, announced integration with AUL to offer dealers the ability to rate and contract for AUL F&I products directly through the dealer system.

The connectivity to PEN enables F&I aftermarket product e-contracting directly from the dealer software. Embedded into the system, e-contracting functions eliminate the need for the dealership user to access multiple applications or re-enter critical deal data in order to complete the transaction.

Currently, ADP Menu (formerly MenuVantage) and The Impact Group Fusion menu integrate to PEN. This same technology will soon be made available direct from the dealership management software from Reynolds and Reynolds.

“The connection to PEN is valuable to AUL because PEN connections and services are best aligned to solve a long standing industry need,” says Rand Monroe, General Manager of AUL. “Doing business electronically must be easy for dealers to adopt and PEN supports this very well.”

“AUL is an outstanding organization with a strong dealer base,” said Ron Greer, VP of Provider Services at PEN. “This relationship brings us one step closer to our goal of e-contracting for every dealer in North America.”

PEN is an electronic data exchange that streamlines the sales process by integrating the F&I product provider with dealers’ point-of-sale systems, whether through a menu or directly with the DMS. This integration approach eliminates the need for separate applications to enable e-contracting for aftermarket products. Functions include electronic ratings, forms preparation and contract origination.

DULLES – The Impact Group announced its latest certified interface, a direct integration relationship between ADP DMS systems and the Fusion F&I menu platform, as well as TFS’s FS Presentation. The ADP approved interface now allows Fusion and FS Presentation users increased efficiency, stability, and accuracy throughout their F&I processes with real-time and bi-directional integration.

ADP Dealers using Impact’s menu applications can select the certified integration service through their E-store account with ADP.

Dealers on the Fusion menu can also request the conversion through Impact directly. Impact and ADP will then complete a prompt and seamless transition process to the certified platform. This conversion will substantially decrease the time necessary to pull deal information into the menu, or update it following the customer F&I presentation.

“We are pleased to announce this latest addition to Impact’s offerings. We feel that the direct and certified relationship with ADP will not only enhance the user experience for our F&I managers, but continue to make the Fusion Menu and FS Presentation the most robust, stable, and viable menu solutions in the marketplace today” stated Mark Thorpe, President of The Impact Group.

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.

TROY – Provider Exchange Network (PEN), a division of Open Dealer Exchange, LLC, has launched an integration project with National Automotive Experts (NAE) to offer dealers the ability to electronically contract Vehicle Service Contracts and other F&I products.

“NAE is continually working to improve our process as a preferred dealer partner,” said Kelly Price, President of National Automotive Experts.

“PEN will simplify the F&I process by making it easier for the dealer to rate products and generate the right documentation. Our dealers will spend more time selling and less time on administrative tasks because the process will be seamless within the dealer’s system.”

This connectivity enables F&I Aftermarket Product e-contracting directly from dealer software. Embedded into the system, e-contracting functions eliminate the need for the dealership user to access multiple applications or have to re-enter critical deal data in order to complete the transaction.

PEN will directly connect NAE products to four leading menu software vendors. This same technology will soon be made available direct from the dealership F&I software from The Reynolds and Reynolds Company and ADP Dealer Services, Inc.

“NAE has a great presence in the industry and we see a lot of growth on their horizon,” said Mark Virag, Managing Director of PEN. “PEN looks forward to being a key partner to support NAE business efficiency.”

In this last installment of our connectivity series, P&A will be exploring the integration of parts suppliers and inspection services into the admin systems of providers and administrators. We will be profiling C&K Auto Parts, LKQ Corporation, Big D Auto Parts, Warranty Inspection Services (WIS) and Carr Appraisals.

For parts suppliers who must maintain large databases not only of individual parts, but types of parts (i.e. new, used or remanufactured), and the inherited legacy of not cataloging used parts with OEM part numbers, integration presents a special challenge. This challenge is that there are several different databases, all of which have different part numbers for the same items, and parts and costs are constantly changing. A more in-depth look at this will come later.

The solution to this problem is not an easy one, but can be achieved. As it currently stands, parts suppliers’ databases are not synchronized with each other and are also not connected with administration systems. This means that the providers have to spend a lot of time searching for one part on several different databases to get pricing estimates. If all of the parts suppliers were connected into one universal database, the process would be seamless for the provider. Ideally, the provider would look up one database where all competing prices are listed under the same part number. After selecting the parts supplier, the provider can then negotiate the desired price for their clients.

On the other hand, the inspection industry is particularly suited to integration because it is far less complicated in what needs to be done and, in particular, it is already far down the road in automation. The data entry portion of the inspection process is relatively high, so the ability to have the administrator’s system talk to the provider’s system can provide significant benefits even with a minor integration. At this stage all that is necessary is for the players involved with this process to make it a priority for this integration to happen.

Parts Connectivity

Considering the challenges required, the goal is to deliver the right part quickly, at the lowest possible price while making multiple parties – the provider/administrator, the dealership, and ultimately the policyholder – satisfied and happy with the result. For the claims analyst and the underwriter to find the part, whether it is a new OEM part, a remanufactured part, or a used part, with availability and pricing information readily accessible, is certainly valuable.

C&K Auto Parts already provides parts and parts value data electronically for both new and remanufactured parts to multiple providers and administrators. The integration has been accomplished directly with the administrators and through software companies the administrators use.

The company has been aggressively pursuing integration for the past two years with a number of projects currently under way. C&K’s in-house IT department has invested heavily in proprietary software that allows customization specifically tailored to meet the particular needs of the VSC industry.

LKQ Corporation states there is nothing preventing them from providing parts data to VSC administrators. However, they question if the client even desires electronic connectivity. If there is a compelling business case to make this integration a reality, LKQ is set up to accomplish it. The simple answer is to upload parts data to the integrator in real-time who in turn would make the data available to the administrators, however…

LKQ’s customers generally like the personal touch of a phone call or e-mail with a parts sales associate. With the very nature of recycled parts’ price fluidity, often changing on a daily basis or even more frequently, and the fact that recycled parts prices may be negotiated by the administrator, it is easy to see why LKQ views itself as “customer centric.”

Big D Auto Parts faces similar challenges with electronic connectivity. Again, the company values the interaction with claims personnel. If a particular part is not in stock, many times they are able to locate one from an associate or up sell to a remanufactured part that has not shown up in their inventory. Further, each claims office, and more specifically each claim, has different requirements pertaining to parts condition, shipping and warranty. Each of these requirements has to be considered when pricing an item.

Big D, like many parts recyclers, maintains an inventory management system hosted by a national organization. Inventory is part of an electronic data base that is online and available free to everyone. “It is great when working with individuals, however, when working with professional claims adjusters who have specific parameters for each individual claim, the ‘one size fits all’ philosophy does not work very well,” states Hugh Pettigrew, owner of Big D.

To summarize, the issue is not whether part providers are utilizing databases. They all are. And they can be connected to electronically on an individual basis. The challenge is to create a universal database where there is some referencing commonality and where everyone is connected.

Inspection Connectivity

For WIS, the inspection process can be broken down into a few different components: the initial setup, the expected ETA of the inspector on-site, and the inspection itself (broken down into the verbal report, written report, photos/videos and any computer data relevant to the inspection). Each component is possible to automate and integrate to a certain extent, depending upon how far the administrator wants to go.

As suppliers to this industry, WIS explains, as much as the company would like to believe they are central to the administrator’s daily operation, they cannot forget that they are an extra, a service that is common but not essential to the administrator’s prime function. As such, it is vital for them to do whatever they have to do to make it easy for the administrator to use their services. WIS have worked extremely hard and have invested significantly in connectivity and integration, as they believe it will be impossible to remain a significant player in the industry without it.

The feedback that WIS has received over the past two years has convinced them that there will be an expectation of integration capability going forward. It has been beneficial in every respect, although it does present a new expense to the provider. The administrators who have integrated have always been large enough to have their own IT staff, whereas this expense is a significant one for most small providers.

Carr Appraisals contends that the 100 percent automated transfer of all inspection data (from initial assignment through the return of inspection findings/written/photo documentation) through external integrations would streamline the inspection process. Obviously, the quicker the exchange of all information the quicker the claim resolution, which translates to greater customer satisfaction not only for the administrators, but the policyholders as well.

The benefits of external integration and connecting the inspection process with the administrator are evident, but have not yet been fully realized. When compared to the level of internal integration present in our profiled inspection companies, there is still a long way to go. A summary of the level of internal connectivity utilized at Carr Appraisals is indicative of what most inspection companies are already doing today.

Currently all stages of the inspection processes between Carr Appraisals and the inspector is 100 percent automated. Inspectors access inspection requests assigned to them from the company website, then they post corresponding written reports and photos to the web. Their inspection invoice is included in the report they uploaded to the web, which is automatically processed for payment every two weeks and paid via ACH/auto deposit for the most part—some inspectors are old school and still prefer paper checks delivered via U.S. Post Office, but even this is as automated as Carr can make it. Inspectors use digital cameras, some more expensive than others. Photos via a cell phone are not acceptable in most cases as there are flash issues and lack of zoom ability.

All forms and guidelines required to perform inspections are available for download directly from the web. Carr communicates on a mass basis directly with inspectors via an “announcement board” on their website —clients are also privy to these communications. The company notifies each inspector of impending inspection request assignments by direct contact, cell phone, pager, text, or email (this varies depending on inspector capabilities and preferences). Inspection assignment completions are tracked utilizing similar methods. Each inspection request assigned to the company website automatically gets the appropriate online report format (mechanical, tire/wheel, pre-purchase, etc…) attached, as well as an individual invoice.

With this level of detailed internal connectivity, the natural evolution would be for bi-directional data transfer between inspection companies and administrators: data entry to the inspection company and completed inspection reports back to the administrator. As we will see, this may be easier said than done.

Stumbling Blocks to Integration

Adaptability is a major stumbling block to integration, whether you are a parts supplier, inspection company, or provider/administrator. There is not much that is “standard” in this business. Each administrator has their own needs and each one does business a little bit differently. There are many different software platforms that they use and most have been customized over the years, so it is not possible to create a simple plug-in, off-the-shelf, integration program.

Used parts present a unique challenge for integration. George Laurie, national sales manager for LKQ explains, “Unlike new parts, recycled OEM part suppliers generally do not inventory parts utilizing the OEM manufacturers’ original part numbers. We believe that most integrators are currently using an MSRP parts database for new OEM parts. Therein is the challenge. Recycled parts suppliers use different software. Recycled parts are bar coded with an inventory number, VIN, part description, part condition and year, make, model part interchange information; but not the OEM original part number.”

Even if used parts were inventoried using the OEM part number, there is still the issue of price negotiation. Perhaps a system where used parts availability and pricing is made available online using OEM part numbers to accurately locate the part would solve the cataloging issue. Then, if necessary, the personal touch could be implemented when it comes to pricing. An alternative could be an online parts bidding mechanism in place of the personal contact, but that may change the dynamic beyond the comfort of the suppliers.

The “easiest” integration is accomplished through third-party integrators like F&I Admin or StoneEagle using an API interface – a web service that allows the push and pull of data. There can be different levels of connectivity, e.g. inspection request versus the return/availability of inspection reports and photos. The latter would most likely be accomplished via a hyperlink, as it is probably not very cost effective for two separate systems to store reports and photos.

“Easiest” integration does not translate, however, into a painless understanding between the parties as to who will bear the cost of the integration. Inspection fees have remained mostly constant over the last 10 years, in spite of the increased costs borne by the inspection companies for web services, digital photography and photo transfer from the repair facility. Third-party integrators have indicated that they cannot pass on the cost of inspection connectivity to their customers (the providers).

Without sacrificing the overall quality of an inspection, inspection companies are willing to accept their fair share of costs associated with providing “added value” for their product through technological advances. Participating in the cost for a third-party integrator to provide connectivity to an administrator, who at the end of the day benefits the most from the integration, may be too much for the inspection company to bear when one considers their already stressed margins.

The answer is for administrators that do not currently communicate through API’s to consider doing so. L’Tonya Carr of Carr Appraisals states, “Carr Appraisals has had the ability for external connectivity since 2001 [web service with an API interface for standard mechanical inspections], and I suspect other major inspection companies have this ability as well, but not one of our clients utilize that format for auto data transfer.”

In Conclusion

A common theme throughout this series has been the distinct awareness among the profiled companies, and the providers, administrators and dealers they serve, that the path forward is paved with improving communications at all levels.

A universal database for OEM and refurbished parts should be available. Used parts create a significant challenge for the industry and that database would take a lot of work on everyone’s part. However, integration of inspection services is just a matter of time.

There is no doubt that our industry is fully engaged in an integration revolution. In fact, for many, the metamorphosis from legacy processes to state of the art electronic processes has been agonizingly slow. The good news is that with forums like P&A Magazine, VSCAC, Industry Summit, Agent Summit and the newly formed F&I Providers and Administrators Association (FIPAA), the industry is now able to more openly examine and discuss the challenges we all face and begin to chart a path forward in a healthy community atmosphere.

WAYNE - MaximTrak Technologies announced a strategic partnership and integration with F&I Administration Solutions, LLC, a provider of software for the administration of automotive F&I products.

This integration enables auto dealers to electronically rate, contract and register contracts for all providers through the SCS Auto administration platform without having to leave the MaximTrak system.

“We are very pleased to have completed this integration as it further expands the reach of MaximTrak. Our strategy is to open up our network to other providers and enable connectivity to all parties. We have a collaborative approach and our new platform not only offers product integration to MaximTrak directly but also through industry partnerships such as F&I Admin,” said MaximTrak Technologies President & CEO Jim Maxim Jr.

“This integration dovetails with our mission to enable every possible channel for providers and dealers to more efficiently conduct electronic transactions,” said David Trinder, CEO of F&I Admin.

“With our connectivity to MaximTrak, auto dealers can now conduct an entire transaction, from quote to contracting, without leaving the MaximTrak menu. It makes the entire process extremely efficient and also enables my provider customers to present products on the MaximTrak system with no added effort.”