An Extra Hour in the Day

Transcription

1 An Extra Hour in the Day A Focus on Streamlining Processes How can tech fix inefficiencies that are slowing down the vehicle repair industry?

2 Introduction It is well known that technology is reshaping businesses of all sizes across all sectors. Worldwide spending on digital transformation technologies including hardware, software, and services hit $1.3 trillion in 2017, according to IDC 1 and this investment is showing no signs of stagnating in 2018 and beyond. The vehicle repair industry is no different when it comes to the growing adoption of digital transformation technologies. Bodyshops and repair centres are being pushed to accelerate this investment by the rapid integration of new technologies within the vehicles hitting the roads today. One example is Autonomous Emergency Braking (AEB), a safety technology that considers the traffic conditions ahead and will automatically brake if the driver fails to respond to the conditions. This significant upgrade in vehicle safety has the potential to save 1,100 lives and 122,860 casualties over the next 10 years 2, according to Thatcham Research. AEB systems use Lidar, Radar or Camera technology and frequently a combination of the three, which equates to an increase in the overall work required to get a vehicle with this technology built in back on the road. In addition to advancing vehicle technology contributing to the need for innovation across the sector, growing customer demands for a more empowered digital service are also feeding this industry-wide shift. This need to fix inefficiencies in the vehicle repair sector with technology has been analysed by Audatex in its An Extra Hour in the Day research, which explores how tech can drive efficiency by automating processes, enabling employees, satisfying customer needs in a more open, transparent way and building better supplier relationships. The first area of streamlining processes will be explored in this first in a four-part series of insight reports using the latest research by Audatex

3 Manual processing in the vehicle repair sector The current state of play The research of 250 independent and franchised bodyshops across the UK, found that workplace inefficiencies cost UK bodyshops on average one hour per day per employee. With budget restraints, an increasingly competitive market and more pressure than ever before from consumers to receive transparency on their repairs, there is no doubt that every business in the sector would jump at claiming this hour, effectively 11%, back. This can be done in part by streamlining processes. The research found that currently more than half of bodyshops still use a manual approach to vehicle collection and delivery (60%), courtesy car management (54%) and workshop planning (46%). All three of these areas impact greatly on the customer experience. A software solution is more likely to be used for invoicing (62%) and accounting (68%), yet a third of bodyshops still perform these tasks manually. What are the software tools that you use in your day-to-day job? Vehicle collection/ delivery tooling 40% Workshop planning 54% 68% Accounting 60% 46% 32% Courtesy car management 46% 62% 88% Invoicing Damage estimating 54% 38% 12% Software solution Manual task

4 Experience has shown that manual or paper-based processes result in inefficiencies in most workplaces. Examples of this in bodyshops specifically are poorly filed or missing documents, incomplete or damaged reports, inefficient job allocation and cumbersome collection, delivery and courtesy car forms. This admin heavy manual approach not only runs a high risk of human error, but also slows down each step of the vehicle repair process for both the bodyshops and the customer. In today s Amazon world where we all expect next day delivery and timely updates on all services we receive, the sector needs to assess the systems available to take care of these fundamental front and back office tasks, which are not being fully utilised in vehicle repairs currently. Spotlight On Fleet Car Management Fleet car management is also a manual process for 50% of bodyshops, resulting in customer needs again being deputised and a lack of car choices disappointingly, becoming the norm. These findings suggest that more than 90% of fleet car and parts provider processes are performed outside of the Bodyshop Management Systems (BMS) in a standalone or manual system (e.g. post, telephone and ). A lack of system integration caused by under-utilising the systems available such as BMS, is the primary source of inefficiency in bodyshops and is resulting in a significant amount of unnecessary manual task work being performed.

5 Claiming back valuable time though streamlined processes Forrester 3 recently reported that digital transformation efforts are running into roadblocks amidst confusion, delusion, and resistance to change. The research has shown how this is particularly evident across the vehicle repair industry, revealing a clear lack of engagement with streamlining processes through technology. As vehicle technology evolves and advanced driverassistance systems (ADAS) become standard in modern cars, the vehicle repair industry can t afford to not meet the needs of its customers and the requirement for up-to-date repair and claim processing method. Integrated systems needs to be made a key priority. Previous research found UK bodyshops are investing in technological solutions that go well beyond the standard invoicing, accounting and estimating software systems. Seven-in-ten (69%) leaders of these companies believe a BMS will have the greatest impact on their business over-and-above all other technologies aimed at improving service offerings, such as computerised paint matching and estimating systems. But despite bodyshops investing in technology and an increasing number of off-the-shelf technology and software solutions available, this latest research finds there is still heavy dependency on manual tasks or paper-based solutions. A more reliable and intelligent software-based solution needs to be either adopted or used more efficiently. 3.

6 A key strategic consideration for bodyshops is making the most of BMS capabilities and being fully integrated across a broader range of tasks. This reduces cross-platform, multi-platform or manual ad-hoc tasks. It is more accurate, consistent and more efficient in managing standard tasks from invoicing to damage assessment, job allocation and fleet/courtesy/rental car management. Although modern technology has largely been embraced by bodyshops, there is still significant scope for its integration to improve. Solutions such as bodyshop management, invoicing, vehicle damage assessment software and parts and services ordering systems have surpassed the day-to-day requirements of the end user those who deal directly with customers. This reflects the seismic move towards the adoption of comprehensive management systems, which are being used to achieve the strategic goals of vehicle repair businesses across the UK. Audatex s An Extra Hour in the Day research was conducted by Coleman Parkes in 2018 with 250 independent and franchised bodyshops across the UK. The research delves into the changing nature of the vehicle repair industry and the impact technology is having on businesses achieving their goals.

7 Audatex (UK) Limited, A Solera Company. 24/10/2018 v1