DECEMBER 2008

From the CEO

Is the worst of the downturn
behind us?


“Financiers more discerning” was the sobering headline that followed the decision by GE and GMAC to withdraw from the Australian and New Zealand market. Since then some well known dealerships have closed their doors and hundreds of dealership staff are faced with the bleak prospect of Xmas without a job.

The gloomy headlines continue: “Battered Car Industry”, “Car Sales Slide”, “Crunch Hits Dealers”. We are indeed living in interesting times but despite the fact that profits are down, life goes on and the cycle of boom and gloom will ever define business life in this fortunate country.

Why the need for the Australian markets to so closely mirror the Dow? Unlike America we have four of the twenty top rated banks on the world stage, and a quarry in our back yard capable of meeting the manufacturing needs of our close neighbours, China and India, for many years to come.

In its latest update on the Chinese economy, the World Bank forecast a 2009 gross domestic product growth of 7.5 percent and whilst this would represent the first single digit growth rate for China in more than a decade, it’s hardly the end of the world for a country so admirably placed when it comes to supplying much of the raw materials needed to fuel this amazing rate of growth.

So in this writer’s opinion, we have plumbed the depths. The markets have already been in decline for twelve months, and confidence will begin to return well before the end of the financial year as interest rates continue to ease and consumer confidence is restored.

The Year That Was

Auto-I.T. is in the business of supplying retail Dealer Management Systems to two niche markets. These are the retail Automotive industry and the retail Agricultural, Trucking, and Construction Equipment Industries. Our very existence depends on the continued referencability of our products and services by our clients and to obtain this we need to demonstrate our ability to deliver to their most demanding expectations. Auto-I.T. clients are entitled to expect us to remain innovative in our product offerings, to provide value for money, and to remain in financial health, as a substantial and long term supplier in all markets we choose to participate in.

In this regard I am pleased to affirm that Auto-I.T. has a strong balance sheet, we continually look for new initiatives to improve the products we offer to our clients, and the growth of new client licenses sold in Australia, New Zealand, and overseas over the past 12 months has been substantial.

In short, Auto-I.T. has been supplying products and services to its dealer clients now for twenty eight years, our customers have never been more supportive, and our future has never looked brighter.

Season’s Greetings

Auto-I.T. trades on its core values and ethics and prides itself on providing value for money products and services.

If you know of another dealership that’s doing it tough and not getting value for money or feeling that their DMS supplier is taking them for granted please let us know and we’ll be more than happy to help.

Once again it is nearly time to embark on the holiday season. I hope you share my optimism that 2009 will bring with it a return of consumer confidence, and a deeper understanding by our political and business leaders that there is no room in the future for the excesses of the past.

Once again I reaffirm that in lieu of sending Xmas cards to our valued clients and associates, Auto-I.T. continues to support underprivileged children through the World Vision program, Saley Mahamat, an eight year old boy from Chad and Kana Mondol, a little 7 year old girl from Bangladesh.

Please accept our good wishes for the Christmas season, Auto-I.T.’s thanks for your continued support and our wishes that 2009 will bring with it health and happiness to your families and loved ones.

Ken W Fife | Chief Executive Office | Auto-I.T. Australia Pty Ltd |
kenfife@auto-it.com.au  

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Major Mexican Implementation of EQUIP™

 

 

"The system has enabled us to keep our fingers on the pulse and when required, to act more promptly - especially important in today’s economic situation (something that was lacking on the previous system)."

Spec Woodley
G & J East

Auto-I.T. Australia Pty Ltd has struck a deal to install its retail dealer management software system in all John Deere agricultural equipment dealerships in Mexico. To organise the implementation, JDIS and the Mexican Team attended a conference at Auto-I.T..

The deal follows the sale earlier this year of Auto-I.T.’s proprietary software system to John Deere Information Systems (JDIS), a supplier of software to all John Deere dealers in North America.

Ken Fife, Auto-I.T.’s Chief Executive Officer said the deal with JDIS made in January had paved the way for sales into other international markets which are potentially estimated to be worth in excess of A$1.5B. Mexico represents the first successful entrée into new markets since endorsement of the product by JDIS.

“JDIS exercised an option, which was available to it in an agreement struck in 2003, to purchase the source code for Auto-I.T.’s EQUIP™ software,” Mr Fife said. “This means JDIS effectively became a fully-fledged reseller of our software in the agricultural and construction equipment markets in the United States and Canada.”

Meanwhile in India...
 

 

Auto-I.T.'s Development Manager, Luan Tran recently visited the John Deere Technology Centre in Pune, India.

He is pictured with Julie Abdel-Fattah, PMP Project Manager, EQUIP JDIS and Malek Abdel-Fattah, Technology Architect - Collaboration Project Area, Advanced IT Architecture.

“However, Auto-I.T. retained the right to sell EQUIP™ and its other software systems into all markets internationally, including John Deere dealerships worldwide, as well as into non-agricultural, forestry and construction dealerships in North America,” he explained.

According to Mr Fife, currently Auto-I.T. has a presence in Australia, New Zealand, Brunei, Malaysia, Singapore, Fiji and South Africa but is planning for rapid growth into at least two new countries each year.

“The installation of our software into John Deere Mexico is the first in our international push into Latin America, and requires the software to be translated into Spanish. This gives us an even greater foothold in other international markets,” he said.

EQUIP™ is a fully integrated software system, which is designed specifically for retail dealerships in the agriculture, construction and trucking industries. The system is intended to be rolled out to 34 dealer groups in 115 locations in the John Deere network in Mexico over the next three years.

John Deere Mexico’s IT Manager Mr Mario Garcia said, “Auto-I.T.’s EQUIP™ dealer management system is endorsed and ratified by JDIS, which gave us great confidence in the system’s ability to handle our technical, managerial and reporting requirements. We expect the roll-out of EQUIP™ in all John Deere dealerships will improve each dealership’s interface with head office, while boosting dealer efficiency and profitability.”
 

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CRM - Top 5 Tips for EQUIP Users

 

Michael Cross, International Man of Mystery & Business Development Manager at Auto-I.T., lists the top four Customer Relationship Management (CRM) ideas he has recently encountered.

 

Idea 1 - Support Your Most Loyal Customers


Identify your most loyal customers, those that have purchased equipment and returned to the dealership over a three year period. Look to thank them formally in some way. Also look at their current finance arrangement i.e. what is the estimated payout value compared to the market value? Perhaps you can finance them into new equipment for much the same repayments?
 

EQUIP™ supports this style of marketing activity.
 

"The team at Auto-I.T./Equip have always been helpful and have an excellent understanding of our business requirements and I would highly recommend this system to anyone looking at upgrading their business systems."

Matt Wittholz
Operations Manager
Gawler Farm Machinery

Idea 2 - Try a Different Medium
 

Why not perform a video walk-around presentation of  used equipment and email it to an interested customer? The marketplace is changing - customers are more savvy and using technology such as the internet to research and purchase goods, including equipment. By preparing a personalised video walk around  presentation for a customer and then emailing it to them, we are communicating in a format that they prefer to use. It could be personalised by using the customers name and pointing out features that the customer has mentioned as important to them.

 

Dealerships can also take generic videos and attach them to used equipment stock numbers. Sending a customer a video presentation can save them time coming into the dealership, particularly if they live a long way away. It is also less threatening and has a point of difference.

Idea 3 - Monitor Business Communications


All communications inbound and outbound should go through a business communication centre so all incoming enquiries can be analysed to determine things such as advertising effectiveness, where the leads are coming from, what customers are interested in etc. Equipment dealers are big advertising spenders so we need a process to measure effectiveness.

 

EQUIP™ has inbuilt functionality to support this initiative.

Idea 4 - Measure Lost sales


Most dealerships capture information on customers who have purchased equipment. Few actually capture lost sale information to enable follow up to find out why they missed an opportunity or what we could have done better. Customers will usually tell you. This information may be used to coach staff or improve processes to avoid missing the opportunity in the future. The information could also be useful for manufacturers to understand why customers are bypassing their products.

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Tough Times Lead to Better Practices

 

We know that many dealerships are doing it tough and many want to get more from their marketing. We are here to help. Speak to your Account Manager and ask them how our marketing features can help your business.

"We settled into the software very quickly and it is a pleasure to use a business system that is basically faultless from a performance point of view.”

Brad Ramsey
Ramsey Brothers

 

For example, we have recently signed an ‘industry first’ agreement with Sensis to link our products to the Sensis White Pages® database. If you are going to market to your database it may as well use accurate and up-to-date information. We can also show you how to more effectively use our text messaging and email marketing campaign functions and services.

At the end of the day, if business isn't walking in the door and general advertising is not picking up new customers, then targeting clients that have already used your services and products is probably the way to go.

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New Interfaces

 

Auto-IT has and will continue to write all available Factory Interfaces. Many of these interfaces can assist in making your business more efficient and effective. Don't miss out on giving your business a competitive edge! To find out more about how these interfaces can benefit your business and how to set these interfaces up please speak to your Account Manager or Aaran Newman on anewman@autoit.com.au or 0418 253 368.

 

CASE New Holland Status
Parts Stock Order and Receipting software Available
Daily Parts Price updates Available
   
John Deere  
Electronic Parts Receipting Available
PMPro Pick List into DMS Available
Parts Locator Available
Parts Electronic Ordering Available
Marketing Service Times Available
Financial Reporting Interface Available
   
Hino  
Hino Stock Receipt Invoice Available
Hino Purchase Order Extract Available

 

*For more information and pricing please contact your regional Account Manager.

 

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White Pages® Customer Check

 

"We found the on-site training provided by Auto-I.T. staff to be invaluable in overcoming any uncertainty that was sure to come with any significant software migration such as this."

John Vandersee
Vanderfield Pty Ltd

In these tough times its more important than ever to market effectively to your existing clients within your database! But what if your database is invalid or out of date? Did you know that approximately 17%

of the population or 4 million people in Australia change address on a yearly basis? Checking the validity of your database is impossible without using an external list source and what better source is there other than Sensis White Pages®?

Otherwise a good direct marketing idea might turn out to be costly with little return and with material not reaching its anticipated destination or going to non-existent clients.

Auto-I.T., in conjunction with Telstra's subsidiary Sensis White Pages
®, have built a ‘Dealer Industry First’ LIVE Link into the Sensis White Pages® database for accurate entry of client details as well as a "BATCH" matching system to help cleanse your existing database!

BEFORE you start your marketing campaign get your database in order. Click on to the link below and speak to your Account Manager today for more information.

 

Download CustomerCheck Brochure

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New Clients

 

We would like to welcome the following dealerships as Auto-I.T. clients.

 

Farmpower

O'Hallaran Motors

John Page

Tasmania Farm Equipment

WD Lewis

Greenline Ag

Howard Machinery

Cunninghams

Twincity Trucks

Wickham Flower

Beaconsfield Tractors

Phillips Farm Machinery

MJ & MA Charltons

Barossa Machinery

Booleroo Agencies

General Transport Equipment

WB Truck n Trailer

Independent Storage Systems

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Tech Tips
 

"I have no hesitation in recommending the system to prospective clients."

Spec Woodley
G & J East

For users accessing EQUIP™ via Terminal Services you may sometimes come across an error message saying that you cannot connect to the remote computer due to an error in the licensing protocol.

Unfortunately this is a Microsoft bug which they have still not fixed after all these years. The solution, however, is rather quick and easy. Simply click on the “Start” menu and select “Run”. Type in “reg delete HKLM\SOFTWARE\MICROSOFT\MSLICENSING /F” and click OK. You should now be able to connect to the Terminal Server as per usual.

 

Stuart James - Technical Services

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FAQs

 

Trade Debtors Reconciliation


Question:

What do I need to do if the Debtor’s Subsidiary Ledger is out of balance with the General Ledger balance, when I print the GL Reconciliation Report?



Answer:

Run the ‘Restore Debtor Master’ from the Transaction program for all debtors, to update the outstanding balances. This will keep the balances in line with the transactions posted to the debtor’s accounts.



If the balance is still out, run the ‘Rebuild GL Master’ from the Transaction File program, for the trade debtors General Ledger account. This will keep the balances in line with the transactions posted to the debtors General Ledger account.



If the balance continues to be out, produce the reports ‘Aged Debtor’ and ‘General Ledger Account Scheduling’ for the trade debtors control, General Ledger account. Compare the balance of each debtor account number to the same reference number value in the General Ledger. Once you have identified which side requires adjustment, contact Support at Auto-I.T.

Trade Creditors Reconciliation

 

Question:

What do I need to do if the Creditor’s Subsidiary Ledger is out of balance with the General Ledger balance, when I print the GL Reconciliation Report?
 


Answer:

Run the ‘Rebuild GL Master’ from the Transaction File program for the trade creditors General Ledger account. This will keep the balances in line with the transactions posted to the creditors General Ledger account.


If the balance continues to be out, produce the ‘Creditors Aging Detail Report’ and ‘General Ledger Account Scheduling’ for the Trade Creditors control, General Ledger account. Compare the balance of each creditor account number to the same reference number value in the General Ledger. Once you have identified which side requires adjustment, contact Support at Auto-I.T.

Closing Accounting Periods

Question:

How do I close the accounting period to prevent accounting transactions from being posted to previous periods in error?

Answer:

To prevent accounting transactions from being posted to a previous period in error, it is advisable to enter a Closed Year End Date and Period Number. By doing this, you ensure no-one can enter transactions dated within the defined Closed Period.

To close the account period, you first need to select the Company Maintenance Program as follows:
 


Then from the following screen, simply enter the Closed Year End Date and select the period number you need to close. Then Save and Close.
 



Contributed by Kelvin Gilbert – Auto I.T. Support Team Member

 

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Auto-I.T. Australia Pty Ltd 
ABN: 57 091 383 854
Suite 2 / Level 1, 333 Drummond St, Carlton VIC 3053, Australia
Ph: (03) 9349 3062 :: Fax: (03) 9349 3067
  www.auto-it.com.au