Dealer Benchmark

Find out your strengths and weaknesses


Who to be compared too

Many dealers have a mix of products and are therefore involved in several different types of industries. So when you want to compare your performance, you can do that for part of your business or your whole business. Your industry key is generated by looking at your mix of products. Some examples of how;

Cars(25%),Trucks(25%),Farming(25%),Construction(25%) generates a profile like [Cons Farm Truck Cars]

Cars(10%),Trucks(40%),Farming(25%),Construction(25%) generates a profile like [Truck Cons Farm]

Cars(10%),Trucks(65%),Farming(15%),Construction(10%) generates a profile like [Truck Farm]

Similarly, your type of business impacts financial and operational performance. We look at three types of business; importer, wholesale, and dealer. To be able to compare to peers, you need to define your role in the value chain:

The importer's role usually is the role of holding the country's (or regional) stock of units and parts. It could be an exclusive or non-exclusive contract with the manufacturer. The dealership is then selling these products to the end user.

From the manufacturers' perspective, the wholesale role is the same as the importer. But here, the dealership is instead selling the products to a network of dealers interacting with the end user.

The dealer's role is buying units and/or parts from an importer or wholesale dealer and then offering these to the end users. The business agreements are normally not signed by the manufacturer but by the manufacturer's local partner (importer/wholesale). Still, the dealership is an official partner and might have access to manufacturers' systems

As a user, you can also define if you want to benchmark within your country, with other dealerships within your regional area, or with all dealerships globally.

As a user you can also define if you want to benchmark within your country, with other dealerships within your regional area, or with all dealerships globally.

The area is set by the system depending on the country of the dealership. The continental regions are OCEANIA, SOUTH EAST ASIA, EAST ASIA, SOUTH ASIA, CIS COUNTRIES (EX RUS), MIDDLE EAST, EAST EUROPE, WEST EUROPE, NORTH AFRICA, SUB SAHARA AFRICA, NORTH AMERICA, CARIBBEAN and SOUTH AMERICA..


Calculate Score

First of all. All your benchmarks and scores are saved, enabling you to follow up on trends

Depending on your selection of industry, type of business, and area of reference, the system will identify other records. By looking at the dealership size, the system will then take down the number of dealerships to 9-20 by filtering on the number of employees and branches to compare with peers in size as much as possible. Locally the difference in size within the cluster will fluctuate more than globally.

The best and worst performances are excluded from the query set before defining your score. Then the quartile values are identified and you get a score calculated as the linear position between your quartile minimum and maximum score.

An example; You benchmark a net margin of 5%

The system has identified the following net margins to compare to; 4%, -2%, 2%, 7%, 6%, 4%, 1%, 6%, 5%, 0%, -3%, 3%, 2%, 2%

We take away the worst and the best -3% and 7%

Now the lowest is -2% the first quartile end with 1%, second quartile ends with 2%, third quartile ends with 4% and the max value is 6%

Your 5% is then giving the score of 75+((5-4)/(6-4) * 25) = 88. Because the 5% is halfway between end of third quarter (4%) and the max value (6%).


My Score

TThe most relevant comparison might be the country-level comparison since that is the competitive environment of the dealership. But at the same time, a wider outlook will ensure a dealership of a similar size as your own. In larger countries, it makes more sense to compare within the country.

Since a score based on less than eight other dealerships is considered less valuable, you will not be charged the credits for that comparison. This enables you to change the selections for the comparison until you find a query set that fits you.

For each benchmark, you will get a confirmation showing your score and your last three years of development.

Dashboard

In "My Dashboard" you can track your performance. By selecting kpi category you will impact the content.

The graph is activated by selecting a benchmark using the radio buttons inside the table

From this screen you can also update your profiles or request a new benchmark.

If you want to exclude a value from the reports, you will have to edit the item in "My Data".

Profile


You access your "Dealer Profile" through "My Dashboard"

On this page you set your profile, combining your industry and type of businesses"

You can also add and remove other users access to your dealership."

From this page you can also update your user profile

Benchmark

In "My Dashboard" you can initiate a new benchmark.

When you select what KPI to benchmark you will get a short explanation and an example of it is calculated

You define which industry, type of business and area you want to compare within.

You can either enter a calculated value or put in the base values and let the system calculate the kpi.



Questions and Answers

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Questions and Answers


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