AIS Construction Equipment, Michigan's oldest family owned and operated heavy equipment company, delights customers with its new CDK Service Agreement Management (SAM) system that improves equipment maintenance and uptime. It also drives more parts and labor revenue for the dealership, reports Mike Sydow, Assistant Manager, Fleet Solutions for the construction dealership's six Michigan locations.
"SAM is a huge time-saver, and time is money for everyone in our business," says Sydow, who joined AIS about one and a half years ago. The company has used CDK IntelliDealer for over two decades.
Headquartered in Lansing, Michigan, with six additional sales and service facilities throughout the state, the company sells, rents and services new and used equipment from 22 manufacturers of equipment for construction, road and paving, and other applications. Komatsu, John Deere, and JCB Equipment are its primary OEM lines.
AIS has over 1,400 customer and internal service agreements in force. Sydow notes that service agreements help the company ensure equipment uptime through the convenience and assurance of automated service maintenance reminders and reports that improve service operations and customer satisfaction.
By implementing SAM, AIS has realized these Technician-related benefits:
Using SAM and the service efficiencies it creates for us, we're saving nearly $52,000 a year just in labor hour processing costs," Sydow says.
Because SAM also makes our contract writing easier and saves us time, we see a 50 - 60 percent increase in the quoting of service contracts. I would guess we saw a 15 - 20 percent increase in contracts signed each of the last two years."
Celebrating 50 years in business in 2016, AIS Construction Equipment converted four years ago from manually processed service agreements to SAM. Sydow notes three key benefits it brings to AIS service operations:
We now spend three to four hours a day through SAM to schedule jobs; this feature has allowed us to handle other tasks and grows our department to take on more customers and schedule more productive days for our Technicians," he says.
Parts Managers now using pre-generated parts lists through SAM avoid time look-up tasks that save them several hours a day.
Using SAM via mobile device lets technicians verify service contract details for the specific equipment, assess and order parts if required, and then close out the work order when the job is complete. It also enables the Technician to push his or her labor hours and customer invoices to IntelliDealer from a tablet, smartphone, or laptop.
Before SAM, we pulled operator manuals from machines to gather the data wed need to prepare manual paper contracts. With SAM, we now pull all this various and vital service contract data from our many OEM s automatically through IntelliDealer. Now we need just five or 10 minutes to set up an agreement," Sydow says.
Sydow notes that simplified contract processes using SAM give him more time for active selling.
I would attribute these increases to the fact that we can dedicate more time selling to customers and add more value to the agreement by showing how we manage their machines," he says. "Before SAM, scheduling alone used to take 75 percent of a manager's day, and we've been able to cut that down by 25 - 35 percent. This is done by the ability to schedule services farther out by tracking them in SAM. Before we relied heavily on customers calling in and telling us they needed a service, or we would call them to see if they needed a service.