Running a dealership network is not easy, especially for Original Equipment Manufacturers (OEMs) who have to manage multiple dealers across cities and states. A Dealer Management System simplifies this by keeping everything in one place—sales, stock, services, billing, and more. But in India, many OEMs still have some misconceptions about DMS solutions. These common Dealer Management System myths make them feel that DMS is only for big companies or too costly for smaller networks.
Here’s the Truth: Over 68% of Indian auto dealerships now use some kind of dealer management system software.
Source: Autocar India, 2024And it’s helping them save time, reduce errors, and grow faster. Whether it’s a two-wheeler OEM’s dealer network or a tractor OEM with hundreds of dealerships across India, a DMS can make the work smoother and more organised.
This article breaks down 8 big myths that stop OEMs from picking the right DMS Options. We’ll explain how modern DMS implementation is easy, affordable, and fits any dealer network, small or large. Whether you’re looking for a simple tool for your dealers or a full-fledged DMS for your network, the facts here will help you make a smart choice.
Let’s clear the confusion and see how a DMS can truly help your dealerships work better.
What Is a Dealer Management System?
A DMS is a centralized platform that brings together all dealership operations—sales, repairs, inventory, billing, and customer data—under one roof. Instead of switching between multiple tools or relying on paper records, dealers can streamline everything in one system.
Why a Dealer Management System Matters for OEMs
For Original Equipment Manufacturers (OEMs), managing a dealer network means overseeing sales, spare parts inventory, after-sales service, billing, and customer interactions across many locations. Without a structured system, these processes often become unorganized, leading to delays and errors.
Get your free eBook and discover how to choose the perfect DMS for your OEM network today
Let’s break it down with a simple example:
Suppose a tractor OEM has 75 dealers across India. Without a proper DMS:
- The head office won’t know which dealer has how many tractors in stock.
- There’s no clear visibility of which customers have pending service requests.
- Manual reporting leads to delays and mistakes.
Now, introduce an automotive tool like dealer management system:
- All dealers enter data into the same system.
- The OEM gets real-time updates from anywhere, even on mobile.
- Inventory, service progress, billing, and performance are instantly visible.
8 Dealer Management System Myths Busted
Think a Dealer Management System (DMS) is too complex, costly, or only for big dealers? Not true. Today’s DMS solutions are built for all kinds of dealer networks, big or small. Let’s break down the most common myths and what happens with modern dealer management system software.
Myth 1: A DMS Is Only for Big Dealer Networks
Truth: TThis is a big mistake! A DMS is helpful for all dealer networks, whether they have one location or many. Even a small dealer network can use DMS to keep track of vehicles, sales, and services. For example, a cloud-based DMS lets your dealers’ team check stock or make reports quickly, even if they have only a few workers.
Small dealer networks often have less money and fewer people, so saving time is very important. A DMS does tasks like updating stock lists or sending service reminders to customers. Many DMS companies give solutions that grow with OEM’s dealer network. This means OEMs can start with a smaller solution and enhance modules later. So, a DMS is suitable for any dealer network, big or small!.
Myth 2: A DMS Costs Too Much
Truth: Many OEMs think a DMS will cost a lot, but that’s not true anymore. Today’s DMS solutions are made to fit different budgets. A cloud-based DMS doesn’t need costly computers or extra workers to take care of it. OEMs pay a subscription fee every month or year, which generates more value even when the dealer network is relatively smaller during the initial phase of business.
A DMS also saves money in other ways. It does boring jobs like writing down sales or checking stock, so your dealer team spends less time on paperwork. This means fewer mistakes, which can save money too. For example, if your dealer team makes a mistake in money records, it can be costly to fix. A DMS keeps things correct and saves time, which makes it worth the cost for any size dealer network.
Myth 3: Setting Up a DMS Takes Too Long
Truth: This myth comes from the old days when computer programs were hard to set up. Now, DMS Implementation is much faster and easier. Good DMS providers help your dealer network set up the system step by step. They give ready-made solutions and teach your dealer team how to use the DMS in a simple way.
Most dealer networks can start using a new DMS in just a few weeks. The software company helps so your dealer team can keep doing their work without big problems. Some DMS providers even have special helpers who answer questions during the setup. This means OEMs can see the benefits of their dealer management software quickly, like better stock tracking or easily accessible reports.
Myth 4: All DMS Solutions Are the Same
Truth: This is not true at all! Some DMS solutions are old and don’t have new features. The modern ones built for scale and flexibility have features like real-time updates, cloud access, and smart insights that help your dealer network grow business. These new systems make work faster and better.
For example, a good DMS can show your dealer team how many vehicles are in stock right now, even if they are in different places. It can also forecast which vehicles customers might want, helping OEMs plan better. OEMs need to check DMS options carefully to find one that helps their dealer network work well now and in the future.
Myth 5: A DMS Won’t Work With Our Other Tools
Truth: This is a common misconception. Modern DMS solutions are made to work with other tools, like ERPs, CRMs, etc. They use APIs, which are like bridges that let different programs share information easily.
For example, a DMS can regularly sync stock details with an OEM’s ERP, so your dealer network knows their vehicle inventory available for sales. This saves your dealer team time required to find accurate information. By connecting all tools, a DMS makes your dealer network work better and keeps everyone on the same page.
Myth 6: A DMS Is Only for Sales and Stock
Truth: This myth doesn’t show the full power of a DMS. A dealer management system does much more than just sales and stock. It helps with all parts of your dealer network, like:
- Buying Journey: From enquiry to vehicle delivery, each step is recorded in DMS.
- Service Planning: Book repair jobs, assign workers, and check progress.
- Adherence to Guidelines: Ensures that dealer network follows compliance and OEM’s guidelines.
- Communication: Notify customers about the due date of service, offers, schemes, etc.
- Reports: Show details about sales, services, and how your dealer network is doing.
- A DMS is like a control center that brings all these jobs together. This makes it easier for your dealer team to do their work and for OEMs to check how their dealer network is doing.
Myth 7: We’ll Lose Information When Changing to a New DMS
Truth: OEMs worry about losing information, but good DMS companies make sure this doesn’t happen. During DMS Implementation, they migrate old records like sales, repairs, or customer details safely to the new system. They take careful steps to keep everything correct.
Before moving information, the DMS company makes a backup, so nothing is lost. They also test the new system to make sure all information is there. With a good DMS provider, OEMs can trust that their dealer network’s information is safe and ready to use in the new DMS
Upgrading your Dealership Management System (DMS) doesn’t have to be a headache. Let’s make the switch easy!
View this post on Instagram
Myth 8: Your dealer team won’t use the New DMS
Truth: Today’s DMS solutions are made to be easy to use. They have simple screens that your dealer team can understand quickly. DMS companies also give training to teach your dealer team how to use the system. This training is short and clear, so everyone can learn fast.
When your dealer team sees how a DMS makes their work easier, like finding stock details or planning repairs quickly, they want to use it. Many DMS tools work on mobiles too, so your dealer team can use them anywhere, like on the shop floor or in the service area. With good training and help, your dealer team will like using the new system.
NetFlows360: Turning DMS Myths Into Measurable Wins
NetFlows360 is India’s leading AI-Powered Dealer Management System, built to help OEMs streamline operations, reduce delays, and scale faster. Whether you’re in automotive, agri-equipment, or manufacturing, NetFlows360 gives every dealer in your network real-time visibility, faster service tools, and AI-driven insights.
What You Get:
- DMS modules for OEMs of 2W, 3W, 4W, tractors & farm equipment brands
- End-to-end support, including trained on-ground staff and OEM teams
- Smart automation to speed up claims, service, and sales
40%
Increase in ROI
60%
shorter sales cycles
30%
better lead conversion
Made in India. Built for scale. Ready for the future. Book a demo or explore the platform to see it in action.
Clear the Myths, Choose Wisely
Still holding on to old assumptions about what a DMS can or can’t do? The reality is, modern DMS solutions are smarter, faster, and built to support every kind of OEM, whether you’re in automotive, agri-machinery, or heavy equipment manufacturing.
kind of OEM, whether you’re in automotive, agri-machinery, or heavy equipment manufacturing.
From busting the most common Dealer Management System myths to showing how real-time insights and automation make everyday operations easier, it’s clear that the right DMS implementation changes everything.
With flexible DMS options and industry-ready tools, today’s DMS software isn’t just about sales and stock; it’s about running your entire network with clarity and confidence.
Ready to see how a modern DMS can transform your dealer network?
Book a demo with NetFlows360 and explore a smarter way to manage operations, sales, and service, no matter your industry.
Frequently Asked Questions(FAQs)
A DMS is a software that helps an OEM manage its dealer network’s sales, stock, services, and spares. OEMs need it to make their dealer network work better, keep things organised, and get clear information about how everything is going.
Yes! A DMS helps dealer networks of all sizes. OEMs with smaller networks can use a solution that grows with the expansion of the network, making work easier for the dealer team as well as the OEM
With modern DMS Implementation, most dealer networks can start using a new system in a couple of weeks. The DMS company helps with setup and training, so the OEM’s dealer network doesn’t face issues in adopting it.
Yes, good DMS solutions connect seamlessly with OEMs’ existing software, like their ERP. This also makes it easier for the OEMs to sync relevant information with their dealer network on a regular basis.
Choose a DMS that’s easy to use, with an intuitive interface and mobile access. Give the dealer team simple training and help when they need it. When they see how the DMS saves time, they’ll want to use it!
