David Inglis
incremental profit generator

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DOCs - Daily Operating Controls

Management starts and ends with numbers, because if you don't known the numbers, how do you know where you are now, let alone where you need to be?

Throughout my career I've been stunned at the number of businesses, both motor trade and non-motor trade that don't have effective DOCs in place.

What DOCs should be included?

Well the first to do is consider everything you SELL on a daily basis within each Department and so let's consider these below:

Sales Department

  1. New Vehicles
  2. Finance on New Vehicles
  3. Accessories on New Vehicles
  4. Used Vehicles
  5. Finance on Used Vehicles
  6. Accessories on Used Vehicles

Service Department

  1. Hours per Day
  2. Retail Hours per Day
  3. Internal Hours per Day
  4. Warranty Hours per Day

Parts Department

  1. Parts per Day
  2. Retail Parts
  3. Internal Parts
  4. Trade Parts
  5. Warranty Parts

Having considered what you SELL each day (Unit Sales) we now need to apply a SALES VALUE to each of the above, thus we can identify each Department's TURNOVER and SALES MIX within it.

The next thing to monitor is GROSS PROFIT and this is a little more difficult to do on a daily basis because many costs are paid monthly, but nevertheless each Department Manager should have a rough idea of the average daily COST OF SALE.

Within the Sales Department, the Sales Manager should know exactly how much margin there is in each new and used car being sold.

Within the Service Department, the Service Manager should know the average daily cost of employing his Technicians.

Within the Parts Department, the Parts Manager should know their average buying margin.

Primarily DOCs are produced by each Departmental Manager to monitor unit sales performance and by monitoring this on a daily basis, each Manager is more likely to achieve and exceed month end sales targets.

Providing the DOC's to the Dealer Principal each day enables him/her to look at the bigger picture - that's Dealer Turnover and Profitability.

It's quite interesting to note, one of the most common reasons why a Retailer begins to run into financial trouble is that they have stopped monitoring their DOCs.  

And if a Retailer has financial problems, guess what's the first thing a Consultant or perhaps even the Receiver will do?  Immediately re-introduce DOCs.

How effective are your Retailer DOCs - are they for real?

Author: David Inglis

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 Worked with:

  Urban Science
     Int. (UK)

 Castrol Business
     Services (UK)

 ALSS/TUV GmbH

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