CASE STUDY ONE
Installing Advance allowed one customer to improve profits and achieve a return on investment in a few short months.
At a medium-sized bodyshop in the Midlands profitability was tight and the manager was concerned that he was operating below capacity due to inefficiency.
In particular the manager knew that:
The bodyshop was repairing between 20 and 30 cars per week with 7 productives. Labour sales were running around £31,000 per month with a Labour Gross Profit just under 50%.
How Advance helped
Attracted initially by Advance’s ability to integrate with their accounts and estimating systems so as to eliminate the need to re-key, the manager enlisted the help of the Advance team. Advance was installed and within 2 months the changes were significant.
With re-keying removed, the receptionist was free to spend more time on customer service. This, in turn, meant the estimator was free to spend more time estimating and improving estimates. By reducing the administrative overhead, the manager found he could improve profitability by freeing up his productives and reducing non-productive time.
Using the shop floor management system in Advance and the proactive workflow capability which actively alerts managers and employees when a job is held up or ready for its next stage, the manager found he could analyse and reduce repair cycle time. This meant he could then increase capacity.
The number of repairs per week increased significantly and labour sales improved to over £36,000 per month with a gross profit of just over 63%: a net profit increase of around £48,000 per year.
Additional repair throughput also meant profit increases from the additional parts and paint sales.
The installation costs of Advance were recovered in a few short months by increased profits.