DOCs - Daily Operating
Management starts and ends with numbers, because if you don't known the numbers, how do
you know where you are now, let alone where you need to be?
Throughout my career I've been stunned at the number of businesses, both motor trade and non-motor trade that
don't have effective DOCs in place.
What DOCs should be included?
Well the first to do is consider everything you SELL on a daily basis within each Department
and so let's consider these below:
- New Vehicles
- Finance on New
- Accessories on New
- Used Vehicles
- Finance on Used
- Accessories on Used
- Hours per Day
- Retail Hours per Day
- Internal Hours per Day
- Warranty Hours per Day
- Parts per Day
- Retail Parts
- Internal Parts
- Trade Parts
- Warranty Parts
Having considered what you SELL each day (Unit Sales) we now need to
apply a SALES VALUE to each of the above, thus we can identify each Department's
TURNOVER and SALES MIX within it.
The next thing to monitor is GROSS PROFIT and this is a little more difficult to do on a
daily basis because many costs are paid monthly, but nevertheless each Department Manager should have a rough
idea of the average daily COST OF SALE.
Within the Sales Department, the Sales Manager should know exactly how much margin there is in each new and used
car being sold.
Within the Service Department, the Service Manager should know the average daily cost of employing his
Within the Parts Department, the Parts Manager should know their average buying margin.
Primarily DOCs are produced by each Departmental Manager to monitor unit sales performance and by
monitoring this on a daily basis, each Manager is more likely to achieve and exceed month end sales
Providing the DOC's to the Dealer Principal each day enables him/her to look at the bigger picture - that's Dealer
Turnover and Profitability.
It's quite interesting to note, one of the most common reasons why a Retailer begins to run into
financial trouble is that they have stopped monitoring their DOCs.
And if a Retailer has financial problems, guess what's the first thing a Consultant or perhaps even
the Receiver will do? Immediately re-introduce DOCs.
How effective are your Retailer DOCs - are they for real?
Author: David Inglis
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