The modern automotive dealership generates a staggering amount of paperwork.

Dealerships handle a massive influx of sensitive data, from sales contracts and financing agreements to service records and warranty information.

In an era where data security and operational efficiency are paramount, the transition to cloud-based document management is no longer a luxury but a necessity.

Here are two big reasons why it’s important to have your dealership’s data in a safe, easy-to-manage, and cost-effective digital backup with a dealer-centric digital document management solution.

Enhanced security

Traditional paper-based systems are vulnerable to physical threats like fire, floods, and theft. Digital storage eliminates this risk by storing data in secure, off-site data centers, helping to protect you against physical security threats. Even if a dealership’s physical location is compromised, critical documents remain safe and accessible.

A strong digital backup solution will provide robust digital security measures for your dealership. Reputable cloud providers invest heavily in advanced security protocols, including encryption, multi-factor authentication, and regular security audits.

These measures often exceed the security capabilities of individual dealerships, providing a higher level of protection against cyberattacks and data breaches.

The right solution can help you with compliance, especially in the F&I office. Automotive dealerships handle sensitive customer information, subjecting them to various data privacy regulations. Cloud-based systems can help dealerships maintain compliance by providing audit trails, access controls, and data retention policies.

For example, compliance with regulations like the Gramm-Leach-Bliley Act (GLBA) is becoming more enforced, and cloud-based systems help with those requirements.

Improved document management

Having so many documents makes it nearly impossible to safely and securely store all of them. A strong digital solution provides centralized access and organization. Cloud storage provides a centralized repository for all dealership documents, eliminating the need for bulky filing cabinets and disorganized paper trails.

Authorized personnel can access documents from anywhere, while still providing the option to being securely limited by strategic controls, such as IP whitelisting.

Deals move fast, and you need a streamlined workflow. Cloud-based document management systems often include features like electronic signatures, automated workflows, and version control, which can significantly streamline dealership operations. This can lead to faster processing times, reduced errors, and improved customer service.

The reality in automotive retail is that numerous digital systems are used to sell vehicles. If the management of these documents regresses to using physical document storage, you lose critical benefits. Cloud-based document management facilitates seamless collaboration among dealership staff. Dealerships have evolved where you now see management overseeing numerous locations from a central place.

Access to your documents digitally, across numerous locations, supercharges your team’s efficiency without increasing head-count.

Most importantly, cloud storage is highly scalable and cost-effective, allowing dealerships to adjust their capacity easily as their needs change. By eliminating the need for on-site servers and IT infrastructure, cloud-based systems can also help dealerships reduce costs. If the worst happens, you do not need documents onsite.

You need a digital solution that helps with disaster recovery. Cloud backups allow quick and efficient data recovery during a disaster, minimizing downtime and ensuring business continuity.

Migrating to a dealer-centric document management empowers automotive dealerships to operate more securely, efficiently, and effectively. It’s a strategic move that protects sensitive data and enhances overall business performance.

Joseph Green is the vice president of operations at One View, which provides DMS-agnostic document management and data solutions that drive efficiency and safeguard operations focusing on security, compliance, and innovation.