Best Practices

Why Dealers Need a Vendor Management System and How They Can Benefit

SponsoredAuto dealers are faced with tremendous operational challenges today. The pressure to always be increasing sales volume, service and retain customers, train employees, etc., and do it all profitably, is no small feat. It also cannot be done alone, which is why dealers depend on strong partnerships with many different providers.

While there is a multitude of services and solutions available that are designed to help dealers do everything they need to grow and maintain their businesses, the industry lacks solutions designed to enhance the dealership experience of its numerous partner relationships and systems. For lack of a better term, there is no Vendor Management System.

Technically the definition of a vendor is a “person or company offering something tangible for sale,” but the term vendor has become the de facto label of outside companies providing any sort of product, service, or solution for dealers.

What is a Vendor Management System (or VMS)?

A true VMS in this context is a web-based solution that can be accessed from any device, e.g. smartphone, tablet, laptop, desktop, etc. and that serves up all the information, access, and resources you need from one centralized interface. It is software-as-a-service (SaaS) solution designed to make life simpler for dealership owners and operators and their multitude of providers.

The Benefits of an Effective Vendor Management System

The primary benefits of a dealership VMS are centralization, authentication, and simplification. Additionally, you will benefit from intelligence and statistics.

Imagine you bring on a new employee in your sales department. In order for him or her to operate and succeed, he or she will require access to numerous different antiquated systems. The new employee will also require training not only from each provider but also from other team members.

Should your team members be providing this training? In some instances, yes, but in other instances, no. Regardless, how would you know which training has been completed or started on by the new employee? Also, which existing employees are utilizing which systems, and how often?

To determine this, you have to log in to each individual system to find out, assuming that information is even available. If it’s not, and in most instances it isn’t, you have to request a report from the provider.

Can gathering this type of intelligence be more efficient?


With an integrated Vendor Management System, you will have access to such activity from all users across all platforms and systems. You would know which training videos have been viewed and not viewed for each employee user, which systems are being underutilized, or not utilized at all, and by whom. You would also have a better feel for which resources are integral parts of your operation.

Identity Management

This type of centralization leads to other benefits such as user and identity management. Rather than your employee users being forced to keep track of multiple different systems logins, team members can instead log in to one central location to which they are able to access whichever systems they’ve been granted. And as already stated, when they do (or don’t), you’ll be able to report on it.

These levels of information lead to efficiency and accountability, two things a savvy dealership needs in order to remain competitive and profitable.

DealerHQ Vendor Management System

DealerHQ – Connecting Dealers with Innovation

Introducing a Vendor Management System at your dealership is simpler than you might realize, and the benefits outweigh the risks. DealerHQ was founded in 2014 to be the only fully integrated platform built for Dealers to access, optimize, and enhance their vendor/partner relationships.

And now, through a unique partnership with DealerRefresh, DealerHQ is able to bring the simplicity and efficiency of its solution to even more dealers by offering a freemium version of the DealerHQ VMS to DealerRefresh Members for a limited time on a limited basis.

To learn more about how your dealership can benefit from this innovative approach to managing dealer-vendor relationships, go here to initiate the process of connecting your dealership with all its innovative resources.

Go here to learn more about DealerHQ

AutoConversion is the exclusive Sponsored Content Advertising Partner for DealerRefresh. With Sponsored Content Advertising by AutoConversion, DealerR...