Electronic document storage is now becoming the rule rather than the exception at many dealerships – and for good reason! The benefits are far reaching: from enabling easier audits to ditching jam-packed filing cabinets.

Yet as with any big change, there are speed bumps. The biggest obstacle is the lack of an official dealership scanning process.

Too often, this job is seen as simply clerical and assigned to a $10 an hour temp or piggy-backed onto the existing tasks of an overtaxed employee. This is a mistake.

The truth is, the Scan Operator acts as a compliance manager as he or she is responsible for ensuring every document in a file is legible, in the proper order, and labeled correctly. Sloppy scanning that results in missing pages or illegible information could result in thousands of dollars in fines if auditors come calling.

Sloppy work may also affect sales managers who want to review a previous deal to provide the best customer experience to a returning customer. The same applies to service managers who want to see previous service history to help with up-sell opportunities when a customer is back in the service bay.

Proper scanning matters – a lot. It’s well worth the time and money to hire a detail-orientated professional and provide hands-on training of the full document flow and scanning process. Skimp on the hiring process and training and a Scanning Operator is likely to make these common missteps:

1. Failing to validate that every image is clean - Every scanned document must be legible and clear before it is added to permanent electronic storage. Tried-and-true rules must be followed, such scanning drivers licenses in color or ensuring there are no folded corners in the documents. The Scan Operator must check the screen after every scan to ensure document integrity.
2. Failing to correct incorrect titles - Mis-titled scans create a load of unsearchable documents. Sometimes it’s a simple smudge on a page that causes the system to misread and misspell the title. The Scanning Operator must always check the documents against what’s on the screen to make sure the title is accurate.
3. Mis-collating documents - Assembling documents in the wrong sequence can lead to an incorrect document title which makes the documents unsearchable. Additionally, ordering the pages are key for optimal use – you do not want to scroll though pages to find the 1st page of an RO or a Deal Recap sheet.
4. Scanning multiple documents together - Failure to use separator sheets or not paying attention to ensure documents are separated may cause multiple documents to be stored under one title. This creates a big issue when trying to find those misfiled documents.
5. Forgetting to number pages - All pages in a document should be counted and numbered before scanning, and then compared to what is on the screen. Missing this step runs the risk of not scanning every page.
6. Immediately shredding documents - Scanning and then immediately shredding documents runs the risk that a scan will be incorrect and there is no way to fix it without the originals. Correct policy is to check the system the next day for documents scanned the day prior, to ensure accuracy before shredding.
7. Failing to remove staples - Staples increase the likelihood of missing a page as one may be “hidden” behind another, resulting in an incomplete file. More importantly, staples may scratch the glass of the scanner. Scanners can cost upwards of $5,000 and a scratched glass can ruin that investment by causing lines on every page.
8. Improper scanner maintenance - Like any equipment, a scanner requires proper maintenance to get the best image quality and functionality. The Scanning Operator should clean the glass daily and clean the paper chute, rollers, and sensors once a month. Page rollers should be replaced annually or every 200,000 pages, whichever comes first.
9. Scanning without document knowledge - The Scanning Operator should be able to identify Service, Parts, Deal, and Accounting documents. After all, if they can’t identify the document how can they make an intelligent decision about how to organize it? Proper identification also ensures they know who to approach in the dealership if information is missing or they have questions.

Electronic document storage is a game-changer when it comes to breezing through audits, enhancing employee efficiency, and getting rid of towering boxes of paper. However, don’t trust scanning to a temp or low-level employee. It pays to hire a professional and invest in training because proper document scanning is the linchpin of a successful storage program.

Cyberattacks are becoming a common problem and lost productivity due to a cyberattack is a huge blow to any business. Here at One View, we are aware of at least 5 dealer groups in just the last six months that were impacted by cyberattacks. One group with 25 stores and over $80 million in annual revenue lost all access to their computer network for over a week.

Dealers think in terms of revenue and productivity time. With 72 working hours in a week and $80 million in annual revenue, a dealer group of this size could stand to lose over $1.8 million in a week’s system outage. That’s $25,000 per working hour. Not to mention the additional time lost catching up on data input for services provided during the outage.

You can avoid a loss like this with proper precautions. However, few businesses are perfect when it comes to data information and security. If your head of IT is a parts manager who knows how to install Google Chrome, it’s time to step up your game.

Along with lost productivity, dealerships who suffer cyberattacks may face a steep price tag of remediation costs, fines and civil penalties, loss of revenue, legal fees, and class action lawsuits.

Security concerns in dealerships are nothing new. Dealerships collect and store a ton of sensitive customer data that is very attractive to cyber criminals. What has changed is an uptick in risk as criminals seek to capitalize on the chaos and remote-working scenarios caused by the COVID-19 pandemic.

Most commonly, a criminal sends a “phishing” email to an employee who clicks an embedded link or opens an attachment. That gives access to your system where an attacker can install malware, ransomware, or intrude on your network. The results can be disastrous. Loss of productivity, inability to close deals, theft of funds, and customer identify theft, to name a few.

The sheer number of different strategies and ways to access your system boggle the mind. You can see a list here. There are a lot of people out there spending a lot of time trying to breach systems. It’s clear that you need to be proactive in defending and securing your network.

Cyber security deserves to be a full-time job because there is so much at stake. Yet, according to Total Dealer Compliance, only 30 percent of dealers employ a network engineer with computer security certifications or training. The first step is to legitimize an IT-directed position by establishing an internal cybersecurity role or engage with a third-party IT services provider to provide this service.

As a leadership team, you need to maintain and regularly review your dealership’s Business Continuity Plan. This is a must-have in this age of unprecedented cyber security threats. Ensure the plan not only addresses cyberattacks but other disruptions such as an internet outages or unexpected loss of DMS access.

If your DMS is compromised, you’ll struggle to process payments, close deals, and log service tickets. Have a stock of paper documents reserved so that you can continue to do some business.

Consider storing files in a secure centralized place rather than on your company’s network. If an attacker gained access to your network they could steal business files and customer information. An electronic document management system is equipped with strict controls that allow you to choose who can access files. These systems further prevent attacks with secure cloud servers with firewalls and cybersecurity tools.

A cloud-based solution for your on-site phone system is also a good safeguard. Phone hacking is common and often overlooked. A hacker with access to your phone system can easily tap lines and access call recordings to steal sensitive customer information, including social security and credit card numbers.

Make redundant systems a part of your plan. Back-ups of Active Directories and internal servers allow you to worry less about losing files due to a hacker. A redundant internet supply can keep you up and running if your primary provider is compromised. If there are multiple buildings on one lot, ensure a fiber connection between buildings to minimize risk while transferring data.

Educate your employees on new and popular cyberattack strategies. This is especially important if you have employees working remotely due to COVID-19 concerns or lock-downs. People who aren’t used to working from home may not recognize attempts to breach security. Search for online security awareness training, which teaches employees how to spot and deal with social engineering attacks like phishing emails.

Other areas to be aware of include securing customer data. Make sure your dealership is following Payment Card Industry Data Security Standard compliance requirements and Red Flag Rules. Educate employees on how to create the most secure passwords, and do spot checks daily or weekly to make sure no one is leaving sensitive customer information on-screen or on-desks unattended.

The question isn’t “if” but “when” a hacker will attempt to compromise your dealership systems. Don’t allow them to succeed. Use a low-privilege IT environment, update your Business Continuity Plan, train employees, and lean on outside cloud-based services to keep your network secure, your employees productive, and your customer information safe. 

It’s not an Internet Sales Manager to keep up with the surge in online leads that many dealerships are currently experiencing. It’s not additional service technicians, who are becoming increasingly scarce to hire.

Your most important hire in 2021 is…a Scan Operator. Surprised?

Although banks are more accepting of electronic paperwork and states are modernizing their requirements, the industry is still required to produce a lot of paper. A paperless dealership may be the holy grail, and all signs point that we’re headed that way, but the reality is that a truly paperless business is still in the future.

That’s why this position is so crucial now: As more dealerships increasingly move towards storing documents online, proper scanning of sales and service documents could be the difference between breezing through audits and paying thousands of dollars in fines.

Here’s an example of a multi-store dealer group in California. The group hired an entry-level Scan Operator who mistakenly piggy-backed multiple repair orders and scanned them into one document, and then shredded the originals. When the OEM came calling with a warranty audit, the files where nowhere to be found. The group was fined $50,000 and the Service Manager was fired. The Scan Operator had left the organization well before the audit, but the damage was done.

This example makes it clear that document scanning is not just a clerical task. Proper scanning can have a direct impact on your bottom line and the health of your business. It is a big responsibility that shouldn’t be handed to an entry-level employee. It deserves to be a proper department within your dealership headed-up by a trained professional.

A “paperless” office makes a lot of sense in today’s heavily-regulated retailing environment where maintaining compliance creates huge paper trails. Electronic document management reduces the expense of office supplies and wasted labor costs of employees digging through file boxes to find documents. It also greatly enhances security. It’s estimated that 1 in 20 paper documents end up lost. With the proper paperless system in place, documents can be scanned, filed, and tagged for the ultimate in security and efficiency.

Proper document management isn’t just about passing audits – it affects your entire organization. Consider the F&I manager working with a returning customer who needs to pull the previous deal jacket to review credit score and products purchased. Or the service advisor seeking information on a customer’s previous repairs. Electronic storage means these documents are available within seconds through a simple online document search. This improves customer interactions and speeds up the sales process for a better overall experience.

It takes a professional Scanning Operator to stop the paper chase without pitfalls. That’s why Harry Robinson Automotive Family in Fort Smith, Ark., created a dedicated scanning department over 10 years ago. True to its family-owned roots, the department is led by Sara Robinson, one of the founder’s daughters. She created a process that is organized and methodical.

“Pushing the paper through the scanner is the easy part of the job; it’s the checking of the document that is a little more difficult,” Robison explains. “If done correctly, all documents should be able to be read and it is important this happens because this is the permanent record of your document and this is the last time some of the documents will ever be touched again. In our service department, rummaging through file cabinets looking for folders full of documents is a thing of the past.”

A great Scanning Operator doesn’t necessarily have to have prior scanning experience. Proper training is a huge part of success. However, any candidate you interview should be:

Organized– A tremendous amount of paperwork will come across this person’s desk every day. If the paper is everywhere, you’re never going to keep it organized.

Methodical – You’re looking for someone who can maintain a repeatable and consistent process.

Accountable – The right candidate will take responsibility for themselves and others. If a document is missing, they will take the initiative to go and find it. They follow the law: “Inspect what You Expect”.

Knowledgeable – This person should have some general understanding of warranty processing, document retention laws, sales deal jacket contents,, and standard accounting practices. This person can be trained, but should show an aptitude for learning and retaining information.

Robinson adds that the job requires “someone with great attention to detail. It takes someone who wants to make sure the job is done correctly, not quickly. This person is the one watching out for you, your company, and in many cases acts a lot like a compliance manager.”

You should be able to lean on your document management provider for help with training. Look for a provider that offers both online and in-person training as well as ongoing on-demand education.

Just as important, your organization needs to emphasize to your Scan Operator that his or her role has a direct impact on your dealership. The job is not simply clerical. They can affect your business positively or negatively, so apply appropriate goals and compensation to keep them committed to success.

Robinson recounts hearing of companies that hire teams to do scanning at night and then get rid of the documents. “The thought of that terrified me!” she says. “All the things that could go wrong if the person doing their job doesn’t value their work, then the documents would be incorrect and they wouldn’t care or be fazed by the results. Would they pay attention to the technician notes on the back of the page? Would they notice two or three pages fed through at once? Would they care?”

As you look ahead to 2021, these are questions to ask yourself. You’ll likely be preparing to bring in plenty of revenue producing employees. But don’t overlook the surprisingly important hire that can save you money in the long run. Take the time to hire and train a professional Scan Operator and ban the paper trail while gaining peace of mind.