How Canadian Auto Dealers Can Stay Prepared for a DMS Outage
Dealerpull Bot
September 17, 2024 1:24 PM
How Canadian Auto Dealers Can Stay Prepared for a DMS Outage
The recent cyberattack on CDK Global, one of the most significant Dealer Management Systems (DMS) providers, has shown how important it is for auto dealerships to be ready for unexpected outages. Dealerships rely on these systems for everyday tasks like managing inventory, paying employees and communicating with customers. When the system goes down, so do many critical business functions.
If you’re a Canadian auto dealer, preparing for situations like this is crucial so your operations can keep running smoothly, even when your DMS is offline. Here are some practical ways to be ready.
Key Strategies to Stay Up and Running
Spread Out Your Tech Needs
Relying on just one provider for everything—inventory, payroll, customer management—can be risky. Consider working with different tech partners for different parts of your business. That way, if one system fails, your entire operation doesn’t go down with it.
Also, ensure the vendors you work with are familiar with and up-to-date with the latest security standards. Further, routinely check in on their processes to avoid surprises.
Have a Backup Plan Ready
You need a solid plan for what to do if your DMS suddenly stops working. Make sure your team knows who is in charge of what and how to keep things running, even manually.
Regular training and drills are essential. Don’t just make a plan and forget about it. Get your team involved and make sure they know exactly what to do if something goes wrong.
Keep Your Customers in the Loop
If your system goes down, don’t leave your customers wondering what’s happening. Be transparent and let them know how you’re handling the situation.
Offer extra support if needed—maybe a discount or a free service—to smooth things over and keep customer trust intact.
Simple Steps to Keep Operations Going
Even if your DMS goes down, there are some simple steps you can take to make sure the dealership stays operational:
Backup Your Data Regularly: Make sure you manually back up key data like inventory, customer lists, and leads every month. Store this information somewhere secure and easily accessible so you can still get what you need during an outage.
Paper Copies of Important Documents: Have paper versions of key documents—bills of sale, service orders, etc.—ready to use if needed. These will come in handy if you can’t access your digital systems.
Alternative Tools for Calculations: Set up a third-party tool to handle lease or finance calculations. If your DMS goes down, your finance team can still manually calculate payments and keep deals moving.
Independent Phone System: If your DMS provider also handles your phone system, that could be an issue during an outage. Set up a separate phone service to keep the lines open with customers.
Multiple Internet Providers: Consider subscribing to more than one internet provider. If one goes down, you can switch over to the backup to keep your dealership connected.
Printed Inventory Lists: Each week, print out an updated list of your vehicles, including VINs, prices, and availability. This ensures your sales team can continue selling, even if the DMS is inaccessible.
Third-Party Accounting and Payroll: Relying on your DMS for accounting and payroll? Consider having alternative services lined up. This way, you won’t be caught off guard if the system fails during a critical time.
Create an Operations Manual: Write up a clear manual outlining what to do if your system goes down. Include step-by-step instructions for accessing backups, handling paperwork, and contacting third-party services. Make sure everyone on the team knows where to find it.
Leadership During a Crisis
When a DMS outage hits, dealership leadership becomes more important than ever. Leaders should be ready to communicate frequently, make quick decisions, and keep the team focused. Clear communication and supporting your staff will help keep everyone on track during the disruption.
Call to Action: Start Preparing Today
Don’t wait until disaster strikes to figure out how to handle a DMS outage. Start implementing new strategies at your used car dealership now to protect your store from future disruptions. Create and test a backup plan, diversify your technology providers, and train your employees regularly. Ensuring compliance with legal regulations, setting up alternative communication methods, and securing backup services for critical operations like accounting and payroll are just some of the ways to stay ahead of the game.
By taking these steps today, you’ll be well-prepared to face any challenges that come your way, keeping your dealership operational and your customers satisfied, even amid a system failure.
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