In today’s dealerships, the menu systems in use have become the means for not only presenting the dealership’s financial and aftermarket options in a consistent and compliant manner, but have become the new portal for connecting to many of the third party systems available to the modern F&I manager.

F&I’s importance as a primary profit center underlines the need to be informed of the current integration state-of-the-art in the business office. The challenge is to integrate the ever increasing number of third party systems the F&I manager must access to reduce their workload. This will enable more time for productive selling, and is a role that the menu systems have assumed beyond their original design.

P&A contacted a veritable Who’s Who of menu system providers, including Innovative Aftermarket Systems (IAS), Ristken Software Services, MaximTrak, MenuVantage, and VisionMenu. Our intent was to profile the companies and learn which third party systems menu providers are connected to now, and which third party systems they plan to connect to in the future.

Perhaps even more important, does connecting to and integrating third party systems actually streamline the workflow? We will also discuss the menu providers’ availability and utilization of bi-directional integration.

Lastly, menu utilization becomes critical when the software connects to a growing list of third parties. What is being done about menu utilization and are menus being used consistent with their design? It is important to know what the menu providers and other parties are doing to keep menu utilization rates as high as possible.

Connections

If there was ever any question about the multitude of third party systems an F&I manager may have to access in the normal course of business, the following general list of systems our menu providers connect to should put that to rest:

• DMS Providers like Reynolds & Reynolds, ADP, and DealerTrack DMS. Some menu providers connect with Tier 2 and Tier 3 DMS providers as well.
• Lender portals like DealerTrack and RouteOne.
• Aftermarket product providers: VSC, GAP, and other ancillary products.
• Rating and enrollment providers like PEN, F&I Express, F&I Admin and StoneEagle for e-rating, e-contracting, and e-remittance.
• Bi-weekly payment providers.
• Sales and compliance training.
• VIN decoding.
• Electronic identity verification systems like OFAC and Red Flags.
• Credit bureau aggregators like Equifax, Experian, and TransUnion.
• CRM systems.

Our menu respondents did not indicate individually a connection to all of the above third parties, so the following is a brief summary of specific connections.

IAS integrates with DMS providers Reynolds & Reynolds, ADP, and DealerTrack DMS with certified interfaces. The system also integrates with about twenty different VSC and ancillary product providers for e-rating and e-contracting. IAS connects to identity verification systems to verify customer identity and prevent fraud.

Ristken connects with Reynolds & Reynolds, ADP, DealerTrack, and RouteOne with certified integration. Ristken also integrates with other Tier 2 and Tier 3 DMS and DSP providers, in addition to the Provider Exchange Network (PEN), bi-weekly payment provider Equity Driver, OFAC, and Red Flags.

MaximTrak connects with the major DMS providers, credit aggregators TransUnion, Experian, and Equifax, and adds a connection with RouteOne for credit application submission. The company recently added connections to PEN and F&I Admin for e-contracting and e-rating. Rounding out MaximTrak’s portfolio of connections are bi-weekly payment calculators, numerous product vendors, VIN rating, insurance calculations, e-contracting, OFAC, and Red Flag scores.

MenuVantage blends a comprehensive suite of integration to include point of sale providers, credit aggregation, lender submission, automated compliance screening, and DMS. The system allows for multi-directional deal flow as not all deals follow the same path.

VisionMenu integrates with most DMS providers, connects to over thirty product rating and enrollment providers, and offers both sales and compliance training plus a CRM connection for Powersports dealers. VisionMenu will connect to any bi-weekly payment provider that has an available web service.

Future Connections

Selecting a menu provider should include individual inquiries as to exactly which third parties they connect with or plan to connect with. Looking to the future, the strategy among menu system providers is to accommodate as many third party systems as possible so as not to limit the eligibility of a system to any dealership based on who they do business with.

The technology is evolving as this is written, and the universe of possible third parties that could conceivably connect through the menu is a moving target. The “menu as a portal” idea, aggregating many of the functions listed above on to one screen, offers a fascinating look at where we are headed with this technology.

All of our menu system providers are aggressively chasing this herd of cats and our entire industry will benefit from their efforts.

A brief look into the future is IAS’s plans to add functionality whereby video recordings are stored alongside tiered and final menus within their menu system for a true historical perspective. IAS’s newest tablet application will also integrate with their menu to provide interview results electronically to F&I managers before the customer enters the business office.

Ristken, cautious not to integrate for the sake of integration, carefully chooses their third party connections based on the value it provides to their clients. Ristken is always looking to integrate with third parties that provide a mutual benefit to the dealers they serve.

MaximTrak already integrates with over seventy-five companies today. The company envisions a future where as technology advances to allow for more functionality, the goal is to stay on the cutting edge and facilitate higher CSI scores and sales by aggregating all of the functions into one application.

MenuVantage believes providers with exclusive contracts with third party delivery systems, those that do not allow the dealer to choose which vendors they do business with, may be forced to accept a more open architecture. According to MenuVantage, the trend in the industry appears to be one where closed arrangements that limit the dealer’s choices will be replaced with an arrangement where the dealer retains control.

VisionMenu sees the menu as a hub between the DMS and other product providers, and plans to connect to anyone with a web service that helps eliminate dual data entry, saves time, and encourages the F&I manager to use a tool that has proven to make them more money.

Deal Flow and Integration: Pull and Push

From a practical standpoint, it has been established that the menu is fast and efficient compared to traditional methods. Custom menus can be generated and modified in seconds. The choke points are in populating the menu with deal data, rating contracts, re-populating DMS with finalized deal data, printing forms, and electronically remitting the sale of aftermarket products.

Streamlining deal flow begins with populating the menu with customer data, vehicle info, and deal structure. Menu systems integrate with DMS and/or lender portals to pull this information and populate the menu deal screen, eliminating duplicate data entry from the outset.

A connection with VIN decoders and product providers’ rating engines can then supply a list of eligible products. The F&I manager only has to select time and mileage bands based on the consumer’s driving habits to populate a custom menu. No fumbling with rate matrixes or forgetting surcharges are possible when only eligible products are presented to the F&I manager to select from.

Once the final deal structure and product selections are agreed upon, the next step is to update DMS and print forms. Here is where things get really hairy with integration. MaximTrak, Ristken, and MenuVantage offer bi-directional communication with DMS. “Pushing” finalized deal data back into DMS and updating a deal record, however, is not allowed by all DMS providers.

MaximTrak postulates that bi-directional functionality will become more integral to the overall process because aftermarket contracts will stem directly from the menu sale. Ristken has found that the majority of their dealers utilize DMS integration capabilities even though some F&I managers still choose a manual input process. Either way, Ristken’s menu retains full functionality. The majority of MenuVantage’s dealerships benefit from a bi-directional interface, customized with line-by-line detail.

IAS’s certified DMS integration is not bi-directional at this time, but the company has not seen this to be a complaint from actual users. Although the company believes that theoretically bi-directional integration makes sense, “in the trenches” it’s not a true concern.

VisionMenu pulls data from DMS. When the company first established DMS integration, it was believed integration needed to be bi-directional – pulling and pushing. They have found that a dealer has no problem manually updating a few products in DMS. According to VisionMenu, this is all a push accomplishes, since the F&I manager has to go to DMS to print forms anyway.

Most F&I managers are accustomed to manually updating DMS with finalized transaction data, even if offered the option of electronically updating the record in DMS. Why? Chalk it up to old habits dying hard when a finance manager is unlikely to wait more than a few seconds for the update process to complete.

Forms for sold products can be printed the old-fashioned way with impact printers and multi-part forms, or with e-contracting right from the menu. Which path is chosen here is determined primarily by the product provider and whether or not they connect with companies like PEN, F&I Express, F&I Admin or StoneEagle to facilitate e-solutions.

The expense of supplying multi-part forms and not having transaction data electronically will ultimately drive late-adopting product providers to join the e-contracting club. Every participant in the supply chain, from the provider to the consumer, will benefit from 100% adoption of e-rating, e-contracting, and e-remittance.

Menu systems are becoming the de-facto hub through which third parties connect in the F&I office.

Utilization

If you agree with the above statement, then menu utilization becomes an important factor in order to gain the efficiencies, cost savings, and increased profits menu systems are known for, particularly when access to third party systems is built-in to the menu process.

Utilization for any software application is dependent upon factors like ease-of-use and accountability. For menu systems, industry usage statistics are unclear as to the percentage of deals with a signed final menu. Nor is it clear if menu systems are being used properly.

For IAS, generating a nightly report compiling menu usage data and emailing it to the general managers and agents is a first step. Next, IAS’s staff reviews menu usage statistics for every store on a weekly basis. IAS then personally contacts every F&I manager whose usage has dropped off. Ascertaining the reason for the drop off has resulted in an improvement nearly every time.

Ristken evaluates each enterprise and their needs to develop a strategic utilization plan. As dealerships become more comfortable with technology, combining effective training, collaborative sales tools, and valid results has improved utilization rates.

MaximTrak’s research has shown that when a menu is used consistently, PVR will increase an average of $200 per vehicle and VSC penetration will rise an average of 14%. MaximTrak believes the best way to enforce menu adoption is through management buy-in. Once management sees the potential for increased profits, directives and pay incentives will help finance mangers follow suit.

MenuVantage has incorporated several processes to ensure menu utilization and continuously works with dealers and agents to maximize the experience.

VisionMenu focuses on ease-of-use, believing the F&I manager will take advantage of the profit opportunity it gives them. The agent is often paying for the software, so menu usage is mandated because the system adds income and is part of the agent’s value proposition.

It is interesting to note the different approaches the various menu providers take when it comes to utilization and accountability. One thing is certain, menu utilization will not magically happen on its own. In most cases, it will take hands-on involvement and constant monitoring to get the desired results.

It is clear that many of the innovations in the finance office are built around the powerful application the menu has become. Our industry is fortunate to have some very bright people willing to push the integration envelope, transforming a sales tool into a commerce hub.

If you missed Part 1 of P&A’s connectivity series, click here for “Connecting Providers, Administrators and Dealers: Administration Systems”

RICHMOND, Va. – StoneEagle is now able to integrate inspections from Warranty Inspection Services into its SEcureARCH administration system. The integration will allow StoneEagle’s 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.

As a result of the integration, StoneEagle’s users will enjoy significant time savings and the elimination of data entry mistakes when using WIS for inspections.

“We have been working to develop an integrated module to help our third-party administrators manage outside vendors,” said Brent Allen of StoneEagle Group. “With Warranty Inspection Services’ introduction of VeriScan, we immediately recognized that our customers would want access to this new technology. Any time we can improve accuracy and save time and money for our customers, integration makes perfect sense.”

“Our VeriScan technology offers the first real advancement in the inspection industry since digital cameras became commonplace, and is potentially beneficial to every administrator in the industry. We are excited to be working with StoneEagle to get this new technology into the hands of their extensive customer base of administrators in a smooth, seamless manner,” said Chris Rand, co-president of Warranty IS.

VeriScan is a proprietary tool designed to increase the accuracy, timeliness and thoroughness of inspection reports. VeriScan facilitates encrypted WiFi/cellular transmission of vehicle data (through an OBDii interface), photos, and the inspector’s initial written report to WIS’s secure servers. This system allows the administrator to receive more data and more accurate data faster than previously possible. VeriScan gives customers the ability to see the computer data from the vehicle and to view the written report and photos while taking the verbal report. Any additional photos or report editing required can be completed while taking the verbal report, allowing for clarification of any technical issues, making the verbal report much more accurate.

SEcureARCH is StoneEagle’s third commercially available warranty administration system and combines decades of industry experience with the latest technologies. It is fully integrated and compatible with all of StoneEagle’s other offerings as well an array of other providers.

Automation, systems integration and industry standardization can deliver great efficiencies, service improvements and cost reductions in the claims adjudication arena of the service contract industry.

In an age where technology is making business in every industry more efficient, the claims process is no exception. However, there is much that can still be done. Challenges to delivering a more efficient and automated process are not all due to technology.

A lack of industry standards in database structures, naming conventions and price codes as well as the lack of established industry standards themselves stand in the way of delivering on the promises that technology holds. Everything from filing the claim to getting it paid can be optimized further by establishing standards and more fully utilizing and developing available technologies.

Parts Pricing Automation

Many systems are integrated with a parts MSRP database. However, getting the recommended manufacturer price is only the first step. There are numerous suppliers of used and refurbished parts, and especially with the repair of older vehicles, these products/prices need to be considered when approving a claim.

Few, if any, of these product supplier databases are connected to claims systems with the result that claims agents have to spend considerable time searching for parts and prices online or have to make long and inefficient phone calls to obtain the information.

The part needed is already in the claim system, so why not link directly into the refurbished parts database and automatically get the pricing? Well, it’s not so easy. Many, but not all, of the suppliers of these parts have adequately sophisticated systems but most importantly, the product coding in use tends to be unique to each supplier so that cross referencing of parts is actually one of the most significant stumbling blocks.

Labor Guide Automation

Along with integrating parts pricing, claims agents would gain significant time savings from integration with published labor guides. Having standard labor times for standard operation codes at the push of a button would avoid the current process of manual and online lookups. Today, labor guides are all electronic, but there are very few, if any, claims adjudication systems with integrated labor guides that provide standard labor times for common repairs.

Automation in this area is an important but challenging task. Automating the labor guide lookups would require either integrating with multiple labor guide sources (which is expensive) or an industry standard for labor times and costs for common repairs.

As with the refurbished parts industry, data from different service centers is generally organized differently, with unique codes for repairs. Standardization would help considerably to make it possible for this to become a more automated process.

Automating Inspection Requests

An inspection is required in 10 percent to 20 percent of claims. Today, most inspection companies can take the inspection request online, but in most instances, it requires the details to be entered into a separate inspection website.

Again, all the details required for the inspection are in the claims system. It should be possible to order the inspection request with the touch of a button within the claims system. This process could be further automated by the claims software automatically requesting the inspection with certain claims – based on cost and/or claim code.

Of course, the report of the inspection should also be automatically linked to the claims system so that it can be viewed from within the claim itself.

Online Claim Submission

Having a repair facility submit claims online with the details of parts and labor into a website that is directly linked into a claims system adds further to claims process efficiencies. The challenge here would be to make the process as efficient and smooth as possible so the service centers have an incentive to do it online.

Although it is not necessarily required to enable first notice of loss capability, the integration of parts and labor rates would certainly add some smoothness to the process. Claims adjusters would need to monitor a first notice queue and would make faster progress on approving a claim if the repair facility had already entered the complaint, cause and correction as well as the details of the parts and labor required before making any calls required to give final approval.

This process must have service metrics defined that set expectations for the service centers leading to predictable times of adjudication of claims just as with phoned-in claims. In addition, web-based communication tools such as online chat for help while entering a claim, and e-mail/online alerts for when a claim is updated or paid would prevent further phone calls.

Add to this an automated inspection order for certain jobs and the claims each agent could manage each day would increase significantly.

Automatic Delivery of Repair Order

Along with the automation of inspection reports, repair orders can be automatically delivered through integration with the dealer’s DMS. Currently, repair orders are completed by the service center and faxed or mailed to the claims center. Someone then reviews the repair order to ensure that the service center has done what was agreed upon before the payment is processed.

By integrating with a dealer’s DMS, a claims adjuster can access all information related to that repair order, peruse that information, confirm that the repair was performed as authorized and pay for the repair. In fact, with sufficient standardization, it might even be possible to translate the repair order information from the DMS directly into an online ‘first notice of loss,’ saving further keystrokes and phone calls from the service center.

Integrated Credit Card Payment

Credit card payments are often the preferred method of payment for repairs. Today, many providers give the credit card number over the phone once the repair has been approved.

Often a provider will be operating with between one to five credit cards and the reconciliation of payments made with the credit card statements at month end are time consuming and often very challenging.

Credit card payments can be automated through integration with credit card providers. This accepted process takes advantage of a card provider’s ability to issue a unique credit card number with every payment using an electronic interface with the claim adjudication system. In addition, the card is only approved for a set amount and to a certain category of vendor.

Once the card payments have been made, the reconciliation is automated within the claims system. Automating this process has proved to save the work of two people in a medium-sized provider.

Self-Authorized Claims

While the idea is somewhat controversial for many claims managers, it is quite possible to enable a repair facility to self-authorize claims with the right integration and controls when claims are well defined. Of course, such repair facilities would have to be carefully chosen, but in this day of reinsurance treaties in which the dealer stands to gain significantly from the success of a service contract program, self-authorized claims are within the bounds of sensible business practices.

General Motors is one company that has a process in place that would allow for self-authorized claims for repairs covered by its manufacturer’s warranty. Each repair has its unique code which, when entered by the claims adjuster, automatically shows the part number, the number of parts, the price of the part and the labor associated with replacing that part, and there is an agreed-upon reimbursement rate for that repair. With this system, a large proportion of claims can be self-authorized.

Outside of the OEM world, the first step in self-authorization and one that has been used to great success is for prepaid maintenance programs. The nature of the product is such that the parameters for claims are clearly set and the participation of a claims adjuster is both unnecessary and too expensive. With the same level of controls in place, certain service contract claims could be authorized in a similar fashion. In fact, that is exactly what GM is doing.

Every service contract provider has developed and deployed at least some of these strategies to various degrees. We don’t know of anyone who has done all of the above. The claims process remains an area that has much opportunity for building efficiencies through the combination of industry standardization and technological development.

It is amazing that in 2010, 50 years into the Information Age, one of the toughest problems we face in our industry is the integration of various mission-critical software applications with the typical dealership management system (DMS). P&A Magazine spoke with industry experts about the current “State of the Industry” as it pertains to integration. Although roadblocks still exist, progress is being made.

No doubt, it is an interesting time for software providers and DMS companies. This relationship continues to evolve as software companies look for efficient, affordable, secure ways to access the data they need.

IAS, an ancillary product provider and third-party software developer, has been able to access the DMS companies’ open architecture by using their certification/approval program. Widespread acceptance and utilization of Internet web services has sped up development and allows for simple business-to-business communication.

“The DMS providers we work with have outstanding support and documentation for the interfaces they provide,” says Matt Nowicki, director of information technology for IAS. He says the same is true for the various product providers and administrators IAS works with.

However, some software providers are still wary of working directly with a DMS company and continue to use homegrown or third-party “hostile” interfaces to access data on the DMS.

“The problem with this is security,” Nowicki says. “Most dealers in America do not truly understand or appreciate the fact that most hostile interfaces expose their data in a very insecure way.”

It is now the law that dealers take measures to ensure the confidentiality of customer data and DMS providers share in the responsibility of this effort.

“If DMS providers don’t lock down their systems, they will surely be named in future lawsuits when the inevitable happens: customer data gets stolen en masse from a dealer’s system,” Nowicki adds.

The issue of security ultimately leads to questions about who owns a dealer’s data. This is an age-old question and the answer is not so straightforward: consider, for example, a customer’s Social Security number or birth date. The dealer certainly holds the data, but that does not mean he can do anything he wants with it.

“In our opinion, the dealer owns the dealer’s data, but we understand that many partners review and use that data,” says Patrick DeMarco, president of Ristken Software Services. “The ownership of the data is less important than how various partners use that data to provide better services for the industry.”

The sensitivity of some customer and employee information should make dealers think carefully about the kind of interface that is in place and the potential that exists for data to be exposed to third parties.

Standardizing and Streamlining the Process

Bob Corbin, president and CEO of IAS, says data standardization is still a concern today. How one product provider defines “in-service” data can differ from provider to provider and from software application to software application.

To address this issue, IAS supports electronic rating and contracting for many VSC providers using its certified interface.

“IAS private labels products and software for many providers that simply don’t have the resources or desire to invest in what is necessary to accomplish this degree of standardization,” Corbin says.

Fortunately, multiple data entry of the same basic customer information into disparate software applications is becoming a thing of the past.

While a streamlined process is already possible, the involvement of multiple vendors is still an issue, says David Trinder, CEO of F&I Administration Solutions. Until all the DMS providers open their systems to third-party vendors, full integration will always be a challenge.

DeMarco says, “The good news is that both the DMS providers and the application providers realize that eliminating double entry is a win-win solution.” Ristken has certification agreements with all the major DMS providers, which provides dealers with full integration.

“As we look to the future, I think you will see a consolidation of application providers who can provide dealerships with full integration capabilities,” DeMarco adds. “The main objective is that we all align our goals in assisting the dealers with selling and servicing vehicles.”

Moving Toward a Paperless Office

To achieve an ideal DMS-integrated environment, the dealer will play a key role in securing his own system and forcing software providers to develop direct agreements with each DMS provider. This need will only become more critical as a growing number of parties try to access sensitive customer data.

Likewise, an ideal product-integrated environment would include the electronic generation and submission of all documents used in the F&I department. Generating electronic contracts has been a priority for a number of years, but there are still challenges to overcome.

“Part of the issue [with generating contracts electronically] is that there is a lot of paper that gets printed in the F&I office other than product warranties including odometer statements, the LAW contract, etc.,” IAS’s Nowicki explains.

Fortunately, when full integration finally becomes a reality, there will be few losers in the industry. Third-party “data brokers” and those that refuse to switch from a hostile interface will not fare well, but everyone else will benefit.

“DMS providers may feel like the losers at first, but they will be the winners in the end because dealers will no longer be so upset about their approach to integration,” Trinder says.

Furthermore, certified vendors would have stable integration, dealers would maintain secure data and the F&I department and other end users could count on a reliable interface.

Achieving these ideals would translate into faster turnaround in F&I with more accurate results. Cancellations would decline, chargebacks would be eliminated and errors would be minimized.

Despite the barriers that must still be overcome, Nowicki is optimistic about the industry’s ability to achieve these ideals.

“I expect that by the end of this decade – 2020 – either all or the vast majority of F&I offices will be paperless, at least from a backend processing standpoint,” he says.

LAKE SUCCESS, N.Y. – Jaguar Land Rover North America LLC intends to integrate its dealer communications platform with DealerTrack Systems, Inc.’s Dealer Management System (DMS) during 2010.

“We are looking forward to partnering with Jaguar Land Rover to provide full integration with its dealer communication systems, which should significantly enhance the appeal of the DealerTrack DMS to all Jaguar and Land Rover dealerships across North America,” said Rich Holland, vice president and general manager, DealerTrack DMS. “Jaguar and Land Rover dealers considering our DMS will be able to proceed with confidence that the DealerTrack DMS can meet their technology needs, consistent with all OEM communication requirements.”

Following the planned integration, dealers using the DealerTrack DMS with the new factory communication interface will be able to expedite critical transaction processes and eliminate many potential data errors. Information will transfer seamlessly from one system to another without having to be re-keyed.

Dealers will be able to electronically transfer or receive a wide variety of communications, including financial statements, parts orders, warranty claims and reconciliations, and labor time guides.

“Jaguar and Land Rover dealers are increasingly interested in the DealerTrack DMS because of its competitive pricing and ‘Software as a Service’ model, as well as the open access it provides to other vendors,” said Russ Miller, Retailer Systems Manager at Jaguar Land Rover North America. “We will work closely with DealerTrack to ensure that our integrated communications solution creates new efficiencies and enhances the flow of information to and from our dealer base – consistent with our ongoing commitment to help drive sales, profitability and customer satisfaction at Jaguar and Land Rover dealerships across North America.”