3 Document Storage Myths Exposed
- Digital is changing the automotive industry.
- Learn the facts about digital document storage before turning your back.
Change is inevitable. But it’s also hard to accept and understand.
In our industry, one change becoming a prominent force is digital document storage. Physical documents have been around for hundreds of years, so it’s difficult for some to accept this new, digital age. Over time, false assumptions have been created and brought into the conversation.
Let’s put them to rest by laying the groundwork. Understanding the why behind those false assumptions will allow you to view them as they are: mythical.
Myth #1: “Document storage is too expensive, and there will be no return-on-investment.”
Think about it this way: you are currently spending thousands of dollars per month on paper, toner, boxes, shipping, storage facilities – the list goes on. According to PricewaterhouseCoopers, every 4-drawer filing cabinet holds 10-12,000 documents and costs $1,500 per year. How many 4-drawer filing cabinets are in your dealership? If it’s more than you can count on both hands, that’s at least $15,000.
What about other monthly office expenses? Think about that number as a whole over a year’s time. If you could eliminate an estimated $40,000 a year, would it be worth the investment?
Myth #2: “The transition to document storage will take too long.”
We’re talking about massive amounts of paperwork across every department, so an adjustment period is unavoidable. But with a set plan and dedicated support team, the transition will be over before you know it. In fact, one dealership recently scanned and archived two million documents within six months – and it was only being done part-time!
Plus, by digitizing your entire process, scanned deal documents or ROs can be accessible from any dealership workstation. Your systems and processes would “talk” to each other, making the entire dealership run smoother and your life easier.
Myth #3: “Digital documents are less secure and less reliable than physical copies.”
If physical copies are in your dealership, you are exposed to risk. Anyone can step inside and take advantage of the information on your documents.
Research by F&I and Showroom Magazine states a lack of compliance costs an average dealership $792,000 in lost profit annually. Are you willing to lose $792,000 per year due to non-compliancy and failed audits? Unfortunately, that could be the cost of exposed documents in your dealership.
The truth can sometimes hurt
Consider your options moving forward. It’s up to you to decide if you want to be known as a proactive industry leader or a reactive industry follower.
Digital document storage has changed the game for dealers; don’t be the last one to show up.