Automotive ERP Consultant, Australia

Agency sales, dealer stock and used vehicles

Traditional dealers buy new vehicles from the manufacturer or its distributor, hold them as stock, often with finance, and sell them at a price they set. Under an agency arrangement, which some brands have introduced in Australia, the manufacturer generally keeps ownership of the vehicle, sets the price and pays the dealer a fee for each sale and handover. Many dealers run both models across different brands.

For the ERP, the difference is large. Agency vehicles may not appear on the dealer's balance sheet at all, revenue becomes a fee rather than a vehicle sale, and the dealer still has costs for preparation, demonstrators and delivery. Used vehicles, trade-ins and accessories remain the dealer's own stock and margin. Getting this split right early avoids misleading gross profit reports later.

Dealers are licensed under state and territory rules, and some jurisdictions impose obligations on used vehicle sales such as statutory warranties. I do not interpret those rules, but I make sure each vehicle and deal record holds the information your compliance processes need. The general framework is on my automotive ERP page.

Accessory fitment and the independent workshop

Accessory fitment is a big part of the Australian automotive economy. Owners of utes and four-wheel drives buy canopies, trays, bull bars, winches, suspension upgrades, long-range tanks and lighting, often as a package fitted before delivery or on a separate booking. Some modifications need engineering certification before the vehicle can be registered in its new configuration.

A fitment business needs requirements that a standard workshop module may not cover:

• package quotes combining several parts and labor operations
• kitting of parts before the vehicle arrives, with supplier lead times visible
• multi-day bay scheduling for larger builds
• sublet work to engineers, auto electricians or fabricators
• photos and compliance documents attached to the job
• margin by package, not just by invoice

Independent mechanical workshops face a related issue. A national scheme for sharing service and repair information gives independent repairers access to the technical data they need, so the workshop system must cope with a wide range of makes and keep its own vehicle history. I map these flows using process mapping sessions with service advisors and workshop controllers.

Warranty, consumer guarantees and GST

Australian customers are protected by consumer guarantees under the Australian Consumer Law, which sit alongside manufacturer warranties, extended warranties and goodwill. In the workshop, each of these means a different payer and a different process. If the system treats every free repair as a discount, nobody can see what is recoverable from a manufacturer, an extended warranty provider or a supplier.

I define claim types, the payer for each, the documents required, and how credits are matched back to the job. Open claims are then reported by age and payer so the service manager can chase them. I leave the legal interpretation of the guarantee to your advisors and focus on the record-keeping.

GST touches every invoice, and luxury car tax can apply to some vehicles, so vehicle records need the fields to identify them. Fuel-efficient vehicle thresholds, exemptions and how the tax flows through a deal should be confirmed with your accountant, not assumed by the software. BAS reporting draws on the same data, a theme covered on my Australian ERP consultant page.

Parts across long distances and choosing a platform

Distance is a cost line in Australian parts distribution. A distributor in one capital may serve workshops in regional towns, mine sites and remote communities, and freight can rival the margin on smaller orders. The ERP should capture freight cost per order, choose carriers sensibly, hold backorders without losing the sale and show margin after freight. Distributors share many needs with Australian wholesale businesses.

Common starting points I see include MYOB or Xero beside workshop software, a dealer DMS with spreadsheets for group reporting, and older distribution systems near the end of their life. I build a shortlist, run scripted demos with your own scenarios and support implementation through UAT and go-live. Before cutover I insist on a full parts count at every branch, because a doubtful opening balance undermines trust in the new system from its first week.

I work remotely, scheduling sessions to suit teams in eastern, central and western time zones, with visits by arrangement for larger rollouts. Visit the Australia hub or contact me to talk about your sites.