This Analytics dashboard allows users to analyze in depth the expenses that are key within all the expenses incurred by the dealership.
It enables analysis of variations compared with previous periods and months. In addition, it allows users to control budget execution in order to monitor whether expenses exceed the budgeted amounts.
Dashboard
Management
Departments
Parts, Services, Units — new and used — and Administration.
Frequency
Monthly
Goal
- Control the evolution of expenses.
- Understand the correlation between expenses and verify whether they have been categorized correctly.
- Detect allocation errors.
- Control budget execution.
What happens if it is green?
If comparisons between periods and months are green, it means that expenses have decreased from one period to another.
If comparisons against the budget are green, it means that the established objectives regarding authorized expense levels are being respected.
What happens if it is red?
If the variation when comparing the amount with previous months or periods is red, it means that more is being spent than in past periods.
In inflationary contexts, it must be analyzed whether inflation is the cause or whether there is a disproportionate nominal increase in the expense amount.
If the comparison against the budget is red, it means that the agreed expense amounts defined during the budgeting process are not being respected. This situation must be analyzed, since it affects the profitability budgeted by the dealership.
Improvement strategies
Renegotiate expenses with suppliers.
Analyze the internal expenses of each department using an ABC analysis to identify the 20% of expenses that represent 80% of the total.
Establish control points in Autologica for the authorization of purchases and payments.
Train the managers of each area to understand that the focus should not only be on sales, but also on the final result, where expenses are part of the calculation.
Relationship with other indicators
Proper management of dealership expenses is linked to other indicators, such as return on sales — ROS —, operating results, and earnings before tax — EBT.
It is also directly related to the expenses-to-sales indicator. To reduce the impact of expenses on sales — that is, for each peso billed — expenses must be analyzed in detail.