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Letter to the Editor

Getting Things Under Control

Top tips for choosing - and using - a shop management system

Depending on how the number gets calculated, there are 40,000 to 45,000 collision shops in the United States. One recent report pegged the number that have estimating systems at 29,000 (although it seems difficult to fathom that one in four shops does not). But even far fewer – just an estimated 9,000 – have a shop management system.

Even though this number does not include dealership shops (which generally use dealer management software in operating their body shops), most industry observers concur this number is far too low. Once a shop’s sales exceed $750,000 or certainly $1 million, there are efficiency, financial, and management gains to be had by using one. Again, using generally-accepted industry sales-per-shop estimates, this means that an additional 10,000 or more shops that should have such management software do not.

Whether you are among the 10,000 who might be in the market to add such a system, or if you are among the 9,000 with a system and wondering if it is the right one for your business, INSIGHT this month offers a collection of ideas and advice on choosing and using a shop management system to get the maximum benefit for your business.

Know what you want out of it.

Tim Wilder, of LTW Enterprises, has spent a fair portion of his career over the last 20 years building or implementing shop management systems, and said far too often those frustrated with their system did not take the critical step of determining in advance what they hoped to accomplish with it.

“A lot of people are unhappy with their systems, but it’s because they have the wrong one, or they’re looking for the wrong thing from it,” Wilder said at a seminar he led at NACE last year.

Most shops do not use all the features included in shop management systems, Wilder said. Therefore, base your buying decision not on which one seems to provide the most, but on which one seems to most easily provide the features and information that will be of value to you, the information you will want and actually use on a regular basis.

Wilder said one key decision, for example, is whether you’re looking for the system primarily for administrative gain, or for help with production flow.

“Some management systems have great bells and whistles on production scheduling, production management, and technician scheduling,” Wilder said. “But typically, smaller shops are looking more for accounting and administrative improvements because they can run production with a quick look around. A $5-million or $6-million operation can’t do that. So their emphasis is different. You need to understand what you are looking for help with so when you look at a product, you don’t choose one that’s strongest features aren’t the ones you really need.”

Think about your needs, and even rank them, Wilder suggested, deciding which features you absolutely require and which you may be willing to live without.

Try before you buy.

As with any major purchase, whether you are buying your first shop management system or considering a change, ask the supplier for the names of some shops actually using the software. Get their impressions of it. Ask about the training and support they receive. Ask what they do not like about it.

And take it for a test run. Most software suppliers will give you a demonstration of the software. Or spend some time trying the software at a trade show or at a shop that currently uses it. There is no substitute for actually seeing what it is like to import some estimates and produce some management reports.

Use it to drive your goals.

Scott Rome, president of Rome Technologies, said there is a simple reason that more than 4,000 shops use “CompleteShop,” his company’s management system.

“If you can measure it, you can manage it, and if you can manage it, you can improve it,” Rome said. “A good management system gives you the ability to make better decisions, very informed decisions, so you can have better throughput in your shop.”

Wilder said an example of a goal a management system can help you drive is closure of every file within 24 hours of the car’s completion and delivery to the customer.

“If you decide you will set that as the rule and enforce it, and you have the procedures in place, you’ll quickly start to find the problems in your system, both software and processes, that are stopping you from meeting that administrative goal,” Wilder said.

But once identified, you can work to correct those problems. The software will not do it, Wilder cautioned, but it can help implement the processes needed to reach the goal.

Get some training.

“It is amazing how many shop owners tell us they can learn how to use the software on their own,” Frank Terlep, president of Summit Software Solutions, said. “What they don’t understand is that making shop management software work properly requires that the software company and shop owners and management work together to not only train and educate the actual users in the shop, but also, in some cases, to change some of the shop’s business processes to make the shop more efficient, productive, and profitable.

“To get the most benefit from a new shop management system,” Terlep continued, “the shop must be willing to accept change - new or different business processes, new or different job responsibilities for some employees, perhaps new hardware or accounting software.”

Develop some in-house expertise.

Understanding the training and support that is included or available for a fee as a purchaser of the shop management software is important. But working to ensure at least one person in your operation really digs in and understands what the system can do can help you use it more effectively – because unlike anyone at tech support, that person also understands the specific processes you are trying to put into place at the shop.

“And if your business is reaching the size where you can have an in-house IT person, what you really want is someone who can help you get value from the system, not just keep your network running,” Wilder suggested. “Invest in someone who can help you do the analysis, who can help you use some of the custom reports to make your shop more efficient and give more information and answers to your staff. That’s a better use of your IT dollars.”

The smart collision repair facility owner must put the same kind of care and consideration into purchasing computer business system software - and learning to use it - as when shopping for equipment and shop tools. You must decide to purchase a software tool that will work for you.   o

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