How Inventory Tracking Software Streamlines Dealership Audits

How Inventory Tracking Software Streamlines Dealership Audits

Joanna Lawrence Blog

It’s a familiar scenario. You’re going about your daily business when your bank’s floor plan associate walks through the floor. Your heart starts racing as you unnecessarily crunch numbers in your head, hoping all inventory is in place and accounted for. While a dealership audit is nerve-wracking, advanced technology has made it easier than ever to streamline audits and ensure your dealership is in complete compliance. Thanks to tools such as inventory tracking software, you can approach an audit with confidence the next time an auditor pays a surprise visit to your lot.  

Compliance: An Unavoidable Dealership Pain 

Because new auto dealerships conduct business with high-value assets, these organizations are often closely monitored by floor plan auditors, the Department of Transportation, or even the IRS. As an auditor, it’s their duty to conduct precise inventory control and assess any damages made to inventory to ensure they remain in complete compliance with bank loan officers as well as state rules and regulations.

When a dealership fails to make compliance a priority, they put themselves at risk for crippling penalties that can hinder relationships with floor plan companies and cause immense impacts on their operations. Even worse, they run the risk of losing their dealer license. 

How Inventory Tracking Software Streamlines Audits 

When it comes to passing a dealership audit with flying colors, eliminating inventory issues should be your first step. 

Start by taking a look at the procedures you have in place for tracking inventory. An auditor will assess inventory for wear and tear, check the VINs of each vehicle, and ensure each vehicle has an MSO or title. If you have no advanced tools assisting the auditor in this process, you can expect to spend hours upon hours in spreadsheets and walking the lot to make sure that everything aligns perfectly. 

By using inventory tracking software, an audit that might take an entire day to complete can be performed in as little as an hour. These tools give you complete visibility into your lot, or multiple lots, showing you exactly where each vehicle is located in real-time with the help of GPS technology. This eliminates the need for searching for the vehicle that the auditor might have missed or can’t find. 

In most cases, if an auditor can’t find a vehicle, the dealership is required to pay off the asset if they cannot obtain it in an allotted time frame. With vehicle tracking, the auditor can go straight to the vehicle – ultimately saving all parties involved valuable time and money.

Benefits Beyond Tracking

In addition to real-time location tracking, inventory tracking software provides a myriad of benefits. Because of the GPS location tracking capabilities, these tools are also excellent resources for vehicle theft protection as you gain comprehensive visibility into the vehicle’s location even when it leaves the lot. Your dealership can be alerted when a vehicle has left its designated zone or perimeter, ensuring you maintain all your valuable assets. Plus, these smart alerts can notify you of further vehicle insights, such as fuel and battery levels, making these tools ideal beyond preparing you for your next surprise audit. 

Get Started with an Inventory Tracking Software

As one of the nation’s leading inventory tracking software, Elo GPS helps new car dealerships gain insight into their inventory levels to ensure they are always in compliance while continuing to maximize profits. The configurable hardware can be installed into all inventory across multiple lots, conveniently allowing you to locate vehicles regardless of location. Streamline your audits and experience the benefits of Elo GPS by contacting our team to schedule a demo.