Maximizing Efficiency and Growth: Why Dealerships Must Embrace Digital Transformation

The heavy equipment industry is at a turning point, modernizing at a breakneck pace. The industrial sector is now one of the largest consumers of computer chips, indicating the incredible pace of technological evolution.

And it’s not just the products that are becoming more sophisticated—it’s the businesses as well. According to the 2022 State of Manufacturing Report, 93% of industrial companies are looking for technology solutions to increase operational efficiency.

Heavy machinery dealerships are no different—to increase profitability and customer satisfaction, dealerships must evolve or risk falling behind. Digital transformation is no longer optional—it’s a necessity for survival and growth.

In this post, we’ll explore the current challenges dealerships face, how modern ERP solutions like NAXT can drive digital transformation, and the tangible benefits that come from an integrated, data-driven approach.

The Challenges Facing Heavy Equipment Dealerships Today

Running a successful dealership involves juggling multiple business functions, from sales and service to inventory management and finance. However, many dealerships struggle with silos and poor business visibility caused by legacy systems. Operational silos create isolated workflows that hinder collaboration between departments, leading to inefficiencies and delays in service delivery.

Sales teams may not have real-time access to inventory levels, leading to overpromising to customers or missing sales opportunities due to outdated stock information. Or, the service team may struggle to get accurate, up-to-date information on available parts, delaying repairs and reducing customer satisfaction. In one extreme example, Foley, Inc. had developed more than 70 applications—completely in-house—to run their day-to-day operations.

The consequences of inefficient systems can be significant. Businesses that fail to modernize often face:

Reduced efficiency due to disjointed systems
Difficulty in tracking and managing inventory
Poor customer service due to miscommunication between departments
A lack of real-time insights for strategic decision-making

To remain competitive, dealerships can embrace digital transformation, breaking down these barriers and enabling a more agile, connected operation.

How Modern ERP Solutions Drive Digital Transformation

The key to efficient processes is a robust ERP system. Modern ERP solutions empower dealerships with the tools to streamline operations, enhance visibility, and make business decisions using accurate data, setting the foundation for sustainable growth.

Connecting Systems and Syncing Processes

In the fast-paced world of heavy equipment dealerships, disconnected processes can hinder efficiency and slow down operations.

Operational silos prevent efficiency. By integrating systems and ensuring departments work together, dealerships can eliminate these inefficiencies, improve operational speed, and enhance overall customer satisfaction.

Modern ERP solutions, such as NAXT, integrate various departments—sales, service, inventory, and finance—into a unified platform. This not only streamlines operations but also enhances collaboration and decision-making.

For example, Foley, Inc. simplified its complicated patchwork system of over 70 different applications to less than 20. NAXT365 now provides Foley, Inc. with a central, localized system that connects all employees across the organization. Implementing NAXT365 led Foley, Inc. off of an antiquated ERP and onto a modern platform.

Enhancing Cross-Departmental Communication

People can be disconnected, too. When different departments operate in isolation with poor communication, information does not flow seamlessly, leading to misaligned priorities, duplicated efforts, and delays in decision-making. For example, if the sales team is unaware of current inventory levels, they might overpromise to customers, resulting in fulfillment issues and dissatisfied clients.

ERP solutions bridge the communication gap, ensuring that information flows seamlessly between teams. This integration allows dealerships to:

Improve response times for customer inquiries and service requests
Enhance scheduling efficiency for maintenance and repairs
Ensure sales and inventory teams work in sync to prevent stock shortages or overages

With NAXT, dealerships can streamline workflows and enhance team collaboration, ultimately leading to better service delivery and increased customer satisfaction. For example, at Ziegler, NAXT365 allowed the team to combine data from across the company to create meaningful insights and operations.

“Microsoft Dynamics 365 and NAXT kind of act as this connective tissue between Dealers… We are just scratching the surface of all the data that we can harvest from this system.” – Isaac Berling, Vice President of IT for Ziegler Companies

Enabling Data-Driven Decision-Making

Access to real-time data is crucial for making informed business decisions. Organizations that lack immediate and accurate data have to make decisions based on outdated, incomplete, or inaccurate information. This can result in inefficiencies, missed revenue opportunities, and delays in critical decision-making processes.

Immediate access to key performance metrics gives dealerships the power to proactively address challenges, identify growth opportunities, and improve overall operational agility. Instead of reacting to problems after they arise, dealerships can anticipate challenges and take corrective actions before they impact overall business performance.

ERP systems like NAXT empower dealerships with a centralized platform that aggregates, organizes, and analyzes data from multiple sources. Some of the key performance metrics that dealerships can track using ERP solutions include:

Sales trends and revenue projections
Service efficiency and customer satisfaction scores
Inventory turnover rates and stock optimization

By leveraging data insights, dealerships can identify growth opportunities and optimize operations to meet market demands.

Delivering Tangible ROI

Investing in digital transformation is a strategic decision, but how can dealerships measure success? After implementing NAXT, Lindsey Connolly, Director of Financial Planning and Analysis of Foley, Inc., reports significant time-saving results in NAXT in the Finance space:

Better fixed asset depreciation maintenance. Foley, Inc. saw major efficiency gains in fleet transfer maintenance, saving 14 hours monthly on audits and reconciliations.
Improved financial operations. Bank statement reconciliations, which previously took Foley, Inc. staff 8-16 hours a month depending on transaction volume. It now takes just 10 minutes per day, saving more than 8 hours a month.
Streamlined receivables. Automating the receivable lockbox process cut manual matching efforts in half, saving over 80 hours a month. The time savings were so significant that Foley, Inc. now needs only a part-time staff member to perform the work that used to require a full-time employee.

Foley, Inc.’s experience highlights how ERP-driven digital transformation can result in significant operational efficiencies.

Transform Your Dealership with NAXT

Digital transformation is no longer a distant goal—it’s a present necessity.

By integrating modern ERP solutions like NAXT, dealerships can streamline operations, improve decision-making, and drive profitability. The time to act is now.

Are you ready to build a connected dealership? Contact us today to learn how NAXT can help you achieve your transformation goals.

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