Microsoft Dynamics NAV for car importers and dealers
Journal IT Systems No. 7-8/2009
Microsoft Dynamics NAV is one of the world's most used ERP systems in Czech companies. Originally Danish software, known as Navision, is used by more than 770 Czech organizations, the number of implementing partners reach of 40. Extensive partner network provides long-term base for the development of Microsoft Dynamics NAV. To strengthen their competitiveness, particular partners develop various solutions. We will introduce one of the best in the following article.
Certified solution as a competitive advantage
Zlín company AXIOM SW already entered into a partner Navision network in the mid 90 years. During 15 years in the Czech market, it has acquired many major customers in various fields of business. As the space in the market gradually filled, it had to come up with something that would have excelled over the other partners of Microsoft Dynamics NAV and suppliers of competitive ERP systems. It decided to develop professional solutions designed to car importers and dealers. It came to the focus to this specialization on the basis of more than 10-year-development of customer modifications based on Microsoft Dynamics NAV.
Zlín company AXIOM SW already entered into a partner Navision network in the mid 90 years. During 15 years in the Czech market, it has acquired many major customers in various fields of business. As the space in the market gradually filled, it had to come up with something that would have excelled over the other partners of Microsoft Dynamics NAV and suppliers of competitive ERP systems. It decided to develop professional solutions designed to car importers and dealers. It came to the focus to this specialization on the basis of more than 10-year-development of customer modifications based on Microsoft Dynamics NAV.
In order that this solution could compete not only in the Czech market but also in the world, the company AXIOM SW came up with the idea to apply for its international certification. For Microsoft partners the highest level of certification is to obtain Certified for Microsoft Dynamics Microsoft. Currently throughout the world some hundreds of solutions are evaluated by this high level. One of them is offered by AXIOM SW, and it is called Automotive Business Solutions (ABS).
What is guaranteed to a customer by the certification?
Certification is a subject to strict rules, which are laid down by an international independent agency VeriTest. This company in cooperation with the company Prometrik provides standard certifications of partners and individuals for Microsoft, SAP, Oracle, as well as companies such as Toyota and others.
Status of certified solutions provides customers primarily with standardization of processes, relationships of customers and suppliers in a given filed and functionality of the information system. Before certification there have to be testing of prescribed parameters such as online help, the method of coding, compatibility, installation, backup, form layout, technical materials and other requirements, which are verified by already mentioned independent authority. These are the best practices (Best Practices), which the author of certified solution can apply for other own modules or newly created professional solutions.
Status of certified solutions provides customers primarily with standardization of processes, relationships of customers and suppliers in a given filed and functionality of the information system. Before certification there have to be testing of prescribed parameters such as online help, the method of coding, compatibility, installation, backup, form layout, technical materials and other requirements, which are verified by already mentioned independent authority. These are the best practices (Best Practices), which the author of certified solution can apply for other own modules or newly created professional solutions.
AXIOM completed the Award Certified for Microsoft Dynamics software by other professional standards, such as car dealerships for Ford, or communication with Mitsubishi, Hyundai, Mazda, Nissan, Infiniti and Škoda Auto and more. Types of particular certificates and conditions for obtaining them differ at each supplier, e.g. ways of communication with the producer or importer.
Some words to Dynamics NAV platform
Microsoft Dynamics NAV (the NAV) is the world renowned ERP solution for midsize organizations that operate in the sphere of trade, servicing, manufacturing or work in the health sector and other areas of public and state administration. It uses 70 thousand organizations in more than 30 countries worldwide. In the Czech Republic, as we have said, Microsoft Dynamics NAV is actively used by 770 organizations. Let’s add the number of consultants to the system in the Czech Republic to the list of interesting numbers. At the end of 2008 there were 550 in our market, which is in terms of NAV support an impressive number, comparable only with SAP applications in the world.
Microsoft Dynamics NAV creates an integrated whole of functionalities that can be further on enlarged exactly according to the needs of the company. The great advantage of the system is the wide range of options for its modification and enlargement. Customers have three levels of functional and user increase of standard solution at disposal. Basic options are customer modifications, called "partner modules”. The second level consists of so-called "Add-on" modules, which are programmed special add-on applications. They are registered for Microsoft Dynamics and we could find thousands around the world. It is possible to apply them transnationally and under certain conditions they are included in the price list of Microsoft products. The highest level is represented by solutions that are valued as "Certified for Microsoft Dynamics.
Microsoft Dynamics NAV creates an integrated whole of functionalities that can be further on enlarged exactly according to the needs of the company. The great advantage of the system is the wide range of options for its modification and enlargement. Customers have three levels of functional and user increase of standard solution at disposal. Basic options are customer modifications, called "partner modules”. The second level consists of so-called "Add-on" modules, which are programmed special add-on applications. They are registered for Microsoft Dynamics and we could find thousands around the world. It is possible to apply them transnationally and under certain conditions they are included in the price list of Microsoft products. The highest level is represented by solutions that are valued as "Certified for Microsoft Dynamics.
Automotive Business Solutions its market potential
Automotive Business Solutions (ABS) of AXIOM SW, designed especially for car importers and dealers became one of successfully certified solutions in 2008. From the beginning it was clear that if the authors want to work in such a narrow market segment, they will necessarily have to cross the Czech borders. The solution is therefore completely localized into Czech and Slovak, but also into English. ABS is directly delivered only to customers in the CR. Clients from other countries are contacted through the Microsoft partner network, which is an important authority recommending appropriate and serious partner for the country. The core of the system is developed by AXIOM SW, which also delivers innovations of applications and controls its development. Sales and implementation are provided by a local Microsoft partner in the country.
The company has business partners in more than a dozen countries, particularly in Central, Eastern and Western Europe. It also develops new activities in the Middle East and the Persian Gulf. Proof of successful partnerships is e.g. the implementation of part of ABS solution at AAA Auto in Hungary and Romania. Part of the system for importers (ABS IMS) is implemented in the Dutch company AutoBinck and its subsidiaries in Hungary or Slovenia. Currently ABS IMS implementation has been completed in companies M Motors CZ and M Motors SK (Mitsubishi import for the Czech and Slovak Republics).
Basic functionality and ABS principles
ABS solution is designed for import, wholesale and retail sale of new and used cars, commercial vehicles and trucks. It also includes tools and functionalities to manage other activities closely related to the sale of cars, such as service, operational and financial leasing and insurance. The entire solution is therefore divided into individual major series ABS IMS (import), ABS DMS (dealers), ABS LS (leasing). Each of these major series includes a number of other modules that provide full support of particular sub-processes such as car service, car showroom, communication, etc.
In the retail sector the solution is oriented to dealing companies supplying the cars to the end customer (the relationship importer – dealer - customer). In the wholesale it offers special tools for vehicle importers (relationship producer - Importer - dealer).
The core of the ABS system includes a basic configuration in terms of vehicles, especially imports, and dials that are used for other modules (definition of vehicles, equipment, etc.). Particular spheres of Microsoft Dynamics NAV and ABS require their own configuration. In the entire solution the principle of maximum use of standard functions of Microsoft Dynamics NAV is promoted.
In the retail sector the solution is oriented to dealing companies supplying the cars to the end customer (the relationship importer – dealer - customer). In the wholesale it offers special tools for vehicle importers (relationship producer - Importer - dealer).
The core of the ABS system includes a basic configuration in terms of vehicles, especially imports, and dials that are used for other modules (definition of vehicles, equipment, etc.). Particular spheres of Microsoft Dynamics NAV and ABS require their own configuration. In the entire solution the principle of maximum use of standard functions of Microsoft Dynamics NAV is promoted.
What was used from Microsoft Dynamics NAV
As an example of taking over some of the standard functionalities from NAV it is possible to mention so-called Centers of responsibility, which the developers have expanded and modified according to dealers requirements. Centers of responsibility are used at car dealers in Prague with more subsidiaries or motor shows. They provide multi-level security of access and rights. While official workers at the headquarters can monitor all the company's operations, people in offices work only with their own documents and limited numerical series, approaches, etc.
ABS system also uses the traditional Dimensions, one of the strongest weapons of Microsoft Dynamics NAV, which are predefined entities (model make, serial number, VIN - Vehicle Identification Number, etc.). Record of each car, if called up in any part of the system is thank to dimensions automatically linked with other entities, such as primary documents with which a given transaction is connected. Actual dimensions serve especially to create various types of analysis, e.g. for the analysis of business cases, both within Microsoft Dynamics NAV, and the use of well-known Microsoft Excel tools.
Picture 1 - Analysis of Service using MS Excel
Some new functions have been taken from the fifth version of NAV. These include the possibility of defining templates in MS Word and their performance directly from the system, e.g .for contracts printing. Furthermore, standard functionalities for approval are used fully meet the needs of car dealers. It is similar at document management for smaller customers. Those are usually offered the standard functionality in the form of so-called clips. Clients with larger claims use the module DMS (document management system), created by AXIOM SW.
Car import business cycle
Separate module designed for importers - ABS IMS (Importer Management System) - is divided into four separate areas which are completely integrated into the Microsoft Dynamics NAV. It is possible to manage both import and car trade by them, but also with other means of transport.
Separate module designed for importers - ABS IMS (Importer Management System) - is divided into four separate areas which are completely integrated into the Microsoft Dynamics NAV. It is possible to manage both import and car trade by them, but also with other means of transport.
Picture 2 - Importer IMS ABS module in Microsoft Dynamics NAV
ABS IMS includes a complete coverage of the business cycle of vehicles import. It promotes communication in electronic form, which is usually carried out through a web portal. Sales orders are created for the importer, purchase orders for dealer in contrary. Now let's see how the business cycle of cars import functions.
Picture 3 - Web interface for importers
Shipping is often used for transport of vehicles. After the cars are shipped in the port their lists called "packing lists” will be stored in the system. Order is never covered whole, but progressively according to the fact the vehicles are imported. Once the cars go through customs procedures, they are accounted to the stock. Then there is a link to transport services, which are prepared in the port. Traffic orders for transport by train or by road, including monitoring the state of transportation, its location, etc. follow. Consequently, purchase invoice for vehicles and additional costs associated with supplies are accounted. Then there are customs and cars are sent to the dealer. Business cycle works similarly at spare parts and approval of warranties.
How to get the new car to the customer?
The issue of import of new cars is the subject of the new module New cars. It includes communications solution with the producer, pre-order from dealer and following car distribution. This part of the system also includes important functions used for processing bonuses for dealers. The amount of bonus depends on performance of contracted capacity for cars taking (monthly, quarterly or annually).
Business cycle between importer and producer operates as follows. Importer orders type of car, not specifically defined cars. After the vehicles are introduced, they are assigned by the parameters, they receive VIN (Vehicle Identification Number) and a specific car tracking card is created in the system. This card is the basic tool for mapping the life cycle of the vehicle. It contains a range of information relating to the purchase, customs realizations, and sales. Technical part of the card is used for spare parts; it records car technical parameters, equipment, etc. Many of these data are specified directly by the manufacturer.
Picture 4 – Car tracking card
The issue of import of new cars is the subject of the new module New cars. It includes communications solution with the producer, pre-order from dealer and following car distribution. This part of the system also includes important functions used for processing bonuses for dealers. The amount of bonus depends on performance of contracted capacity for cars taking (monthly, quarterly or annually).
Business cycle between importer and producer operates as follows. Importer orders type of car, not specifically defined cars. After the vehicles are introduced, they are assigned by the parameters, they receive VIN (Vehicle Identification Number) and a specific car tracking card is created in the system. This card is the basic tool for mapping the life cycle of the vehicle. It contains a range of information relating to the purchase, customs realizations, and sales. Technical part of the card is used for spare parts; it records car technical parameters, equipment, etc. Many of these data are specified directly by the manufacturer.
Picture 4 – Car tracking card
New car model means for importers to register thousands of records documenting all possible combinations of equipment supported in the country and related information about spare parts, types of service work, etc. in the system.
What the importers work with?
In ABS IMS module there is a whole range of other important functionalities, without which importers can not do. Such examples are Cars Transfer, for controlling the import and distribution of cars from importer. Transfer takes place via the location (defined warehouses) and has two ties. The first of these seeks to monitor in order to determine the location of the vehicle at all times, and the second is the continuity of insurance.
Pricing module serves the dealer for pricing of car, model, color, equipment and special editions for the country. This section is based on price lists, which are part of the standard functionality of NAV.
Picture 5 - Prices for importers
Management of spare parts in the target country and their distribution to dealers are also an important part. Spare parts module is based on the sphere of warehouse management from NAV. It also includes functionalities for compensation and confusion. The management of spare parts is closely linked with Claims module, which provides a communication to any given items.
Picture 6 – Spare part card
After-sales modules serves to secure after sale service , which completely covers the flow of warranties from the perspective of importer, both to producer and dealers. The module automates the management of warranty reporting, which can be thousands, thereby allows managing effectively cash flow associated with this.
Importers also need the management of marketing activities and communications with dealer network and end customers. For this either Microsoft Dynamics CRM manager or relationship manager from NAV are used. Importer’s electronic communication with dealers and producer is provided by Communication module. It usually secures thousands of transactions in the form of orders, cars booking, monitoring their status in the production, certification, etc.
Dealers have also a big choice
Another key functional sphere of ABS is determined to car dealers. ABS DMS (Dealer Management System) has more parts than ABS IMS, some of them are similar, such as New cars, Spare parts - but from the perspective of dealer. It is possible to interconnect Dealer module with Importer module, if both are in a given country.
Another key functional sphere of ABS is determined to car dealers. ABS DMS (Dealer Management System) has more parts than ABS IMS, some of them are similar, such as New cars, Spare parts - but from the perspective of dealer. It is possible to interconnect Dealer module with Importer module, if both are in a given country.
Auto Palace Praha or AutoBinck Holding interconnected importer and dealer system. The importer uses its own system, the dealer can work with several different systems of importers, such as Mitsubishi, Hyundai and Skoda. Dealer has a portal solution, where he can choose from offered vehicles and enter reservations.
Dealers usually focus on a particular market segment. They sell e.g. Japanese cars, because they know that a certain group of customers buy only those cars and they rarely change their habits. In case the customer does not like the new model of his popular car make, they can offer him a similar Japanese car. System, of course, supervises leasing contracts, and it gives notice in advance of their termination. In response to this it is possible to set automatic sending of offers to a new type of car, including discounts and benefits.
Motor show and Car rental
List of functionality for car dealers is actually very extensive. Let us mention at least Motor show module with which it is possible to work with the cars available in stock. Storage card already contains information about a particular car with the specified equipment, status, documents, dealer, potential customer, identification of booking, etc.
Car rental is important for dealers. It is used to control cases when customer requires a replacement car during the long-term service. With this module dealer can monitor not only the individual dealer loans, but also utilization of cars in graphical form. Car rental is typical with its complex price lists, which are designed to minimize frauds with cars. Rates for longer than one-time borrowing are usually set as a beneficiary. If the customer returns the car before the deadline, the price must be recalculated and adjusted according to the rates for shorter period. This activity takes place at the background of the system. Similarly to other modules configurations are available here - such as statistics of car rental to monitor utilization, rental, paid mileage, etc. The module Car rental provides of course loans, of other objects or equipment such as roof rack, etc.
List of functionality for car dealers is actually very extensive. Let us mention at least Motor show module with which it is possible to work with the cars available in stock. Storage card already contains information about a particular car with the specified equipment, status, documents, dealer, potential customer, identification of booking, etc.
Car rental is important for dealers. It is used to control cases when customer requires a replacement car during the long-term service. With this module dealer can monitor not only the individual dealer loans, but also utilization of cars in graphical form. Car rental is typical with its complex price lists, which are designed to minimize frauds with cars. Rates for longer than one-time borrowing are usually set as a beneficiary. If the customer returns the car before the deadline, the price must be recalculated and adjusted according to the rates for shorter period. This activity takes place at the background of the system. Similarly to other modules configurations are available here - such as statistics of car rental to monitor utilization, rental, paid mileage, etc. The module Car rental provides of course loans, of other objects or equipment such as roof rack, etc.
Leasing for importers, dealers and bank institutions
ABS LS (Leasing System) is another separate part that extends the functionality for car importers and dealers by the sphere service. It has three parts: the processing of financial leasing, operational leasing and loan processing.
Individual modules find use both at importers and separately for leasing and banking institutions. ABS LS can also be combined with importer module. Leasing solutions from Axiom SW are used by specialized banking institutions, such as Bank and UniCredit Bank, Leasing Slovenskej sporitelne. The solution is then integrated into the core of the ERP system (SAP, Oracle, etc.) used by the parent company of the financial institution.
The system is able to record the graphic elements. E.g. during leasing evidence it is necessary to work with photographs of damaged vehicles. The system also includes templates to mark damage to the car.
Picture 7 – Leasing contract card
Best practices in the sphere of leasing and granting of credit
Leasing itself represents an important "best practice". This applies in particular to mathematical calculations, methods of taxation into account for different types of costs, accounting of particular items and their dissolution. In each leasing card payments consisting of principal and annuities are recorded. Amount of payments depends on the selected calculation model. Payments are closely linked to the diaries, in order to complete them and account them into chosen calculation model. The link is made to advance payments, invoices for services, exchange differences, credits, insurance, which must be dissolved in particular periods and properly accounted for taxation purposes. Leasing contracts must have the workflow and approval conditions for the operation set. Leasing system is of course connected to module property and service.
The essence of Best Practices in the sphere of leasing is therefore calculation formula. These must be set flexibly, because they often change according to banks offer. Standard formula is based on decades of experience and practices of Axiom SW in the sphere of leasing in general. In addition, the company employs a specialist who deals exclusively with insurance mathematics and helps to push forward the whole sphere. Another setup and preparation of calculation formula is due to the construction of ABS LS system very fast and supports leasing companies in their business activities in relation to the preparation of new financial products.
Second, important "best practice" is a solution of bank loans to finance vehicle of leasing company. These loans also need to be reflected in the client's payment. Therefore it is very important to properly evaluate a loan from the bank toward provided financing to the vehicle. It is necessary to correctly calculate the profit so that the loan was covered. The price of money and other factors have to be taken into account in different markets. Leasing contracts are therefore normally provided so that it is possible to change the calculation of leasing payments on the basis of changes of conditions in market. Information system is able to flexibly adapt to these changes. It is setup so that at any moment it is possible to change the relevant calculation, and thus conversion of specific payments.
How to solve large-volume sale of used cars
The last module of the certified solution by AXIOM SW is intended for business with used cars. ABS UCS (Used Cars System) is focused on large-volume businesses with amount in thousands or tens of thousands of pieces, with which companies such as AAA Auto, Auto ESA, etc do business.
During developing this module it was necessary to get the specific know-how which its content is. This consists mainly in the knowledge how to link and handle effectively a large amount of data needed for each system agenda. E.g. For the form of service order it is necessary to provide information about terms of orders, delivery of car, service completion, records of service work, time worked, etc. When entering information about the car imports from different parts of the system are used, which are chosen on the basis of a pre-set model. Everything must also be linked to all other parts of the system.
The last module of the certified solution by AXIOM SW is intended for business with used cars. ABS UCS (Used Cars System) is focused on large-volume businesses with amount in thousands or tens of thousands of pieces, with which companies such as AAA Auto, Auto ESA, etc do business.
During developing this module it was necessary to get the specific know-how which its content is. This consists mainly in the knowledge how to link and handle effectively a large amount of data needed for each system agenda. E.g. For the form of service order it is necessary to provide information about terms of orders, delivery of car, service completion, records of service work, time worked, etc. When entering information about the car imports from different parts of the system are used, which are chosen on the basis of a pre-set model. Everything must also be linked to all other parts of the system.
Advantages and benefits of ABS
ABS system offers a great advantage in the change of processes in the import and sale of vehicles. Previously, it was a custom to do many things manually, and fill out all the paper documents, such as for each service contract, receipt or sale of the car. Today, these activities are linked and electronically completed with new information, which will significantly shorten the entire process and make it more efficient.
The advantage of ABS for both importer and dealer is a particular data repository for all agendas - the registration of vehicles, contracts, customers, business cases etc. The possibility to monitor the life cycle of cars is also important. The system records how many owners the vehicle had when it is returned to the same dealer as used for sale and of course, contains all historical data starting with importer’s purchase from the producer and ending with the sale and service interventions for the end user. Finally, the system provides a wide range of analyses and economic evaluation of both individual business cases and the entire business, which is very sensitive for pricing and development of offer and demand.
About the author:
Hana Klčová is an Analyst of Center for Information Systems Research, assistant professor of the Faculty of Management and Economics, UTB in Zlín and Consultant of consultation company CVIS Consulting
