A PRACTICAL FIELD GUIDE • ISSUE 02

What Fragmentation Is Really Costing Your Dealership

Most dealer groups never chose five systems. They grew into them, one brand, one acquisition, one spreadsheet workaround at a time. The cost is real, but it rarely shows up as a single line on the P&L, so it rarely gets a business case. Issue 1 showed that AI only works on connected data. This is the follow-up every finance team asks for: what is disconnection actually costing us?

This is the practical version. Two levers you can measure, systems and IT drag and parts working capital, the costs you can’t invoice, and a scorecard that runs on your own figures instead of an industry average.

What’s inside:

  • You grew into it: how fragmentation builds up through acquisitions, brand additions, and local workarounds, until the same customer sits in three databases under three names.
  • Two levers you can measure: where disconnected systems drain money in IT spend and in parts working capital, with published benchmarks (McKinsey, NADA, Avasant) to test your numbers against.
  • The part you can’t invoice: the iceberg below the waterline. No single customer view, M&A integration debt, margin blur, and slower decisions, and why they matter even though they don’t fit in a spreadsheet.
  • The Fragmentation Scorecard: enter your own figures in about two minutes and get a fragmentation index from 0 to 100 and an indicative annual cost, with every assumption shown and editable.
A-Practical-Fragmentation-Field-Guide
Get your copy of the field guide, including the Fragmentation Scorecard. Two levers, the hidden costs, and your own number. No pitch, just the practical thinking.

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