Above: Marty Phillips (right), ADP Territory Manager, demonstrates the Used Vehicle Network to Leon W. Edwards, Owner, Edwards Chevrolet Company, Birmingham, AL and President of the National Automotive Dealers Association (NADA). This network helps dealers to identify used vehicles in inventory that they intend to sell, or to request used vehicles they would like to buy from other dealers on the network.
Dealer Services, with 13,000 clients, over 160,000 computer devices, and over 100,000 client applications is the world’s largest provider of computing and consulting services for auto and truck dealers. Dealer Services accounts for 15% of ADP’s revenue.
Auto dealers use ADP’s on-site systems to manage their accounting, inventory, factory communications, scheduling, leasing, sales and service activities. In addition, ADP offers more than 95 manufacturer subsystems for warranty processing, pricing updates and factory ordering. ADP also provides dealers with a communications network for parts and vehicle locating, credit checks and electronic vehicle registration.
In ’95, Dealer Services revenue grew by over 30%. This unusually rapid growth was due to both increased market penetration and the acquisition of value-added products, in both the U.S. and abroad.
Last year, ADP achieved record new client sales, fueled by robust auto industry growth. Market share was also expanded by the acquisition of V- Crest which provides dealer management systems to 500 Volkswagen clients in the U.S. and Canada.
Above: Process Reengineering Service is a new program that is designed to build customer loyalty and profitability through effective system management and a series of management and service advisor seminars. David Jones (seated), ADP Major Account Executive and Camille Matthews (center), ADP Major Account Manager, demonstrate the service to Shau-Wai Lam, President & CEO, and Bill Wong, Chief Financial Officer and Director of Dah Chong Hong (USA), NY, NY.
Our strong growth was also assisted by the sale of additional ADP products to existing clients and the introduction of new value-added products. Dealer Services continued to automate the business processes at our client dealerships by incorporating paperless parts cataloging, repair pricing, shop scheduling, laser printing, electronic data archiving and document storage, real-time lien verification, and service merchandising.
ADP’s LaserStation replaces costly pre-printed, multipart, carbonized forms with professional looking originals. It is extremely popular with thousands of dealers because it allows dealers to print onto blank paper at a single laser printer all types of customer communications, including customer satisfaction surveys, service reminders, invoices and statements. Dealers save handling time, storage space, unnecessary copy usage and the cost of preprinted forms. ADP’s clients now utilize 12,000 LaserStations, a 50% increase over last year.
Dealer Services recently introduced a new product designed to create a new paperless office called Document Storage & Data Archiving. It uses optical scanning and disk technologies to electronically scan, store and retrieve purchase orders, invoices, checks, other documents and even customer signatures. Digitized records replace stored documents and can be retrieved from any ADP workstation for viewing, faxing or printing. With this product, Dealers have the opportunity to eliminate all paper, computer tape, microfiche and traditional filing cabinets.
We also introduced a New Vehicle Order System, a Used Vehicle Locator Network and a Reengineering Consulting Service. The New Vehicle Order System increases vehicle order accuracy, improves vehicle management and reduces floor plan interest expense. The Used Vehicle Network helps dealerships manage their used vehicles more efficiently.
ADP continued its strategy of international expansion in ’95 to better satisfy auto manufacturers’ desire for reliable global suppliers of dealer systems. In March 1995, we acquired Turbodata, a leading European auto dealer service with 3,000 clients in Benelux, France and Germany. We also acquired a small company that gives Dealer Services a presence in Taiwan.
Major investments were made in 1995 to improve client service quality, including laptops for all sales account executives and field engineers.
Bob Benson (left), Executive Vice President of Benson Automotive World, Metairie (New Orleans), LA and Bill Sadin, ADP Major Account Executive, discuss the New Vehicle Order System, which provides a tool for better vehicle order accuracy, improves non-performing vehicle management and reduces floor plan interest expense.