"DST Asks": The Use of Computerized Business Management Systems and their Potential for Generating ROI - aftermarketNews

“DST Asks”: The Use of Computerized Business Management Systems and their Potential for Generating ROI

Tremendous technological advances have made the use of computerized business management systems the paradigm of the aftermarket. All tiers of the supply and service chains have benefited from technology -- manufacturers, warehouse distributors, jobbers, national and regional parts and service chains, multi-store independent parts and service enterprises and single-store independent parts and service facilities. Gone are the days when a capital investment in technology was merely another overhead expense. Savvy managers now know that computerized systems can become their own profit centers, generating an impressive ROI.

MISSION VIEJO, CA — Through this new weekly column, DST is embarking on a journey with aftermarketNews.com readers where the destination isn’t as important as the trip itself. We’re hoping to use this space as a forum in which we can share our thoughts and expertise with you concerning technology in the aftermarket, while hopefully learning more about what you’re thinking too.

We started this series with a couple of pretty basic questions:

1) Do you utilize a computerized business management system?
2) If so, can it generate its own ROI?

The poll results showed that eight out of 10 respondents, mostly Warehouse Distributors, use a computerized business management system, but less than half of those systems generate an ROI. These impromptu results, though not scientific, match the industry research that DST has done on the topic. Some of you took the time to provide comments with your answers, which we greatly appreciate. To assist you in establishing a dialogue with us, we have now provided an e-mail address (noted at the end of this column) in which you can ask questions or make comments and receive a reply from DST.

We’re committed to making this forum a success in the same way we have been successful in delivering the best of breed technology-based business management systems for the aftermarket. We live right where it makes the most sense to benefit you…at the intersection of business processes and technology. We’ve been there for more than 15 years. During that time, we’ve learned how to make technology a pivotal tool for your business.

Tremendous technological advances have made the use of computerized business management systems the paradigm of the aftermarket. All tiers of the supply and service chains have benefited from technology — manufacturers, warehouse distributors, jobbers, national and regional parts and service chains, multi-store independent parts and service enterprises and single-store independent parts and service facilities.

Gone are the days when a capital investment in technology was merely another overhead expense. Savvy managers now know that computerized systems can become their own profit centers, generating an impressive ROI. Supply chain technology represents the best way to reduce costs and gain efficiencies. Applying technology enables any company in any market to cut costs, improve accuracy, eliminate waste and save time; much more attainable and realistic than raising prices or grabbing more market share.

Supply chain technologies can address compelling distribution problems — problems that translate into increased costs and decreased profitability:

* Depressed margins and sagging prices;
* Stagnant inventory turns;
* Mounting returns;
* Rebates;
* Inventory and overstock;
* Increasing warranty claims;
* Unreasonable customer demands.

Every week, we will ask readers a different technology-based question, usually requiring only a simple “yes” or “no” or multiple-choice answer. (All anonymously, of course.) We’ll post the results of each week’s poll before asking a new question.

On Wednesday, Jan. 21, we will begin a new poll looking at the increasing use of service and installation facilities in parts businesses as profit centers.

We’d love to hear your thoughts on the topics we post, suggestions for additional questions and anything you’d like to share. Send us an email at: [email protected].

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“DST Asks” is written and sponsored by DST Inc. The opinions expressed in “DST Asks” articles appearing on aftermarketNews.com do not necessarily reflect the opinions of AMN or Babcox Publications.

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