For Toyota Motor Sales USA Inc., enhancing dealer operations and boosting vehicle sales was a paramount objective. Barbra Cooper, the company’s CIO, spearheaded the initiative to modernize communication channels between Toyota and its dealerships. The result? Dealer Daily Toyota, a cutting-edge, web-based communication system designed to revolutionize how Toyota interacts with its dealer network and ultimately drive sales.
The Challenge: Outdated Communication Systems
Prior to Dealer Daily Toyota, communication relied on a legacy IBM AS/400 mainframe system, a system developed over two decades and struggling to meet the demands of the modern automotive industry. While this older system managed essential factory communications like parts ordering and warranty claims, many crucial interactions still depended on slower, less efficient methods such as regular mail, fax, and telephone. This fragmented approach hindered timely information sharing and slowed down critical processes. Recognizing these limitations, Cooper aimed to create a system that would significantly enhance Toyota’s ability to deliver and receive vital information, paving the way for a more connected and efficient dealer network.
Dealer Daily Toyota: A Modern Solution
Dealer Daily Toyota emerged as the answer to these challenges, a comprehensive Internet portal designed to dramatically improve communication between Toyota and its extensive network of 1,100 Toyota and Lexus dealerships. Developed over four years by Toyota’s IT division in collaboration with Microsoft Consulting Services, Dell Computer Corp., and WorldCom Inc., this Windows-based virtual private network (VPN) has demonstrably increased dealer productivity by nearly 70%, according to Toyota. By streamlining processes and centralizing information, Dealer Daily Toyota allows dealers to spend less time navigating complex systems and more time focusing on customer interactions and vehicle sales.
Key Features and Benefits
Dealer Daily Toyota offers a wide array of features designed to optimize dealership operations:
- Streamlined Parts Ordering: Dealers can efficiently order parts online, ensuring timely inventory management and quicker service turnaround.
- Simplified Warranty Claims: Filing warranty claims is made easier through the online system, reducing paperwork and accelerating reimbursement processes.
- Instant Sales and Information Access: Dealers gain immediate access to crucial sales data, company updates, and other vital information, empowering them to make informed decisions quickly.
- Integrated Financing and Insurance Management: Dealer Daily Toyota facilitates online management of customer financing and insurance, simplifying the sales process and enhancing customer convenience.
- Significant Cost Savings: By digitizing processes, Dealer Daily Toyota drastically reduces reliance on printing and physical distribution of materials, leading to substantial cost savings.
- Reduced Redundancy: The system eliminates the need for dealers to repeatedly enter the same information into different systems, saving valuable time and reducing errors.
Integrating with Dealer Management Systems
To seamlessly integrate the retail operations with the corporate infrastructure, Toyota partnered with leading automotive dealer system providers: Automatic Data Processing Inc. (ADP), Reynolds & Reynolds Co., and Universal Computer Systems Inc. This collaboration ensured that Dealer Daily Toyota could effectively connect with existing dealer management systems, creating a unified and efficient workflow. Dealers access Dealer Daily Toyota via PCs on an Ethernet LAN within the dealership, utilizing Internet Explorer and password protection for secure access to the VPN. A monthly subscription fee, based on selected bandwidth, applies to dealers connected to Dealer Daily Toyota over the managed network.
Real-World Impact: Dealer Testimonials
The impact of Dealer Daily Toyota has been overwhelmingly positive, with dealers expressing significant satisfaction with the new system. Ron Napoli Jr., general manager for Toyota North in Mount Kisco, N.Y., described it as “a leap, not a step, from where we were,” emphasizing the seamless integration of factory communication with dealer management systems. Craig Whetter, executive vice president at David Wilson’s Automotive Group in Orange, Calif., echoed this sentiment, calling it “a great change, and it’s a really great system.” Whetter highlighted the improved communication and the ease of training, noting that the web-driven nature of Dealer Daily Toyota leverages the internet familiarity of dealership staff, making information access and training significantly more efficient compared to previous, separate, non-web-based systems.
Future Vision: Build-to-Order System
Looking ahead, Dealer Daily Toyota is integral to Toyota’s long-term strategy of optimizing the entire supply chain. Cooper revealed that Toyota is developing a build-to-order system, to be delivered through Dealer Daily Toyota, which will provide consumers with immediate and accurate delivery timelines for customized vehicle orders. This initiative promises to further enhance customer satisfaction and streamline Toyota’s operations, solidifying Dealer Daily Toyota as a cornerstone of Toyota’s dealer communication and operational efficiency strategy.
Conclusion
Dealer Daily Toyota represents a significant advancement in Toyota’s communication infrastructure, transforming the way the automaker interacts with its dealer network. By replacing outdated systems with a modern, web-based portal, Toyota has empowered its dealers with the tools to enhance productivity, improve customer service, and ultimately sell more vehicles. Dealer Daily Toyota stands as a testament to Toyota’s commitment to innovation and its dedication to fostering strong, efficient partnerships with its dealer network in the ever-evolving automotive landscape.
