9 Ways to Improve Service Center Efficiency

Dealership Service departments are a massive profit center, but inefficiencies can lead to costs in terms of time, money and customer satisfaction, which could reduce your overall financial gain. Here are nine strategies dealers can use to improve their Service departments' overall efficiency and increase profit.

1. Improve Workflow

Spend time on the shop floor and watch the flow. Are tools and equipment within easy reach of the Technicians, or do they have to spend time searching for what they need? If specialty tools are kept in a separate area, ensure they’re well-organized and each tool has a specific marked location for easy identification. Develop a system for checking specialty tools in and out so that Technicians return them promptly rather than leaving them in the bay. 

When it comes to improving the efficiency of vehicle maintenance inspections, arrange the maintenance checklist logically so that the Technician can walk around the truck once instead of going back and forth around the vehicle.

2. Provide Accurate Labor Estimates

When labor estimates are inaccurate, the Service center has to spend time following up with the customer to get approval for a new, higher estimate. Set guidelines for estimating labor hours and ensure the Service Writer spends enough time with the vehicle and the driver to fully identify the problems before preparing the initial estimate. Consider using standard repair times as guidelines but allow for flexibility in quoting labor hours based on your Technicians’ skill levels.

3. Improve Parts Availability

Evaluate the types of repairs the Service center is doing and adjust parts inventories to ensure a sufficient quantity of commonly used parts are on hand. Consider hiring Parts Runners instead of having Technicians leave their stations to pick up parts themselves. 

According to Ricky Johnson, vice president of sales at Borroughs LLC, a dealership can lose an average of $1.50 a minute in revenue when a Technician stands and waits for a part. Consider placing some frequently used parts on the floor to eliminate having to stop a repair and wait for parts. 

4. Invest in Tools and Equipment

You can’t fix today’s trucks with yesterday’s tools. Make sure you purchase the necessary diagnostic tools and equip Technicians with laptops or tablets with internet access so they can quickly find manufacturer repair instructions, wiring diagrams and more.  

5. Provide Ongoing Training and Certification

Take advantage of manufacturer and supplier training so Technicians know the latest maintenance and repair procedures. Consider hosting suppliers in your shop after hours for hands-on training to supplement any online training courses they’re taking. Invest in getting your Technicians OEM and ASE certified, as those certifications reflect a mastery of certain types of repairs, which increases the chances of a problem being fixed correctly the first time.

6. Rely on VMRS Codes

The Vehicle Maintenance Reporting Standards (VMRS) developed by the Technology & Maintenance Council allow Technicians to check off code keys that define the component needing repair and why. This allows them to start the repair more quickly as they don’t have to spend time writing lengthy descriptions of the problem.

7. Leverage Telematics and Sensor Data

Telematics devices and sensors collect information that can help Service Advisors and Technicians diagnose problems quickly. This data can alert them to any pending issues that can be addressed while the truck is already at a service appointment.

8. Use Software

Software eliminates paperwork and clarifies exactly what repairs must be made, preventing misunderstandings between the Service department and the customer. Service center software also tracks the progress of the repair, allowing for more realistic communication about when it’ll be completed. 

9. Communicate Clearly

When communicating with the customer, there’s no such thing as communicating too much or too often. From the minute the truck comes onto the dealership’s lot, keep the customer updated on the diagnosis, explain in detail what the repair will entail, and provide a realistic estimate of when the Technician will begin the repair and how long it will take. 

Make sure you have chain-of-command information on who can authorize additional repairs so the truck doesn’t end up sitting in the bay waiting for approval on additional work. Consider setting threshold limits with the customer that automatically authorize repairs up to a certain dollar amount so you don’t have to contact them for small changes to the repair order.

Implementing these few simple steps can increase the dealership's Service department efficiency and boost your Service department’s contribution to your dealership’s bottom line.