Customer Story

Koenig Equipment, Inc.

CDK’s Walk Around Process Increases Profitability
and Reduces Waste for Dealer Group

Although Koenig Equipment, Inc., has been a CDK client for more than 25 years, Director of Service Operations Matt McConnell is always looking for new ways to reduce waste in the dealership. “For us, reducing waste means minimizing unbilled technician hours,” says McConnell. And with CDK’s Walk Around Process, Koenig Equipment has been able to do just that.

Reducing Write-Offs and Unbilled Hours Key Priorities for Koenig Equipment

According to McConnell, Koenig Equipment reviewed three years of data and found that the company’s write-offs were higher than they wanted them to be: “We found that we’d been negotiating with customers after work had been completed—things that hadn’t been discussed with the customer but needed to be done to keep the equipment in good repair. But because it hadn’t been discussed, we were writing off technicians’ time after closing the work order.” McConnell also needed a better way to account for more than 200,000 technician hours every year.

Koenig Equipment began working with CDK and utilizing the Walk Around Sheet that’s available within IntelliDealer, which has been implemented at Koenig Equipment. As a result, McConnell and the service managers have launched a process that’s effectively addressing write-offs and unbilled hours.

The Walk Around Sheet is located within the Work Order Assignment application within IntelliDealer. These resources facilitate discussions between supervisors and technicians, allowing for efficient work order assignments and workload management. Twice per day, Koenig Equipment prints the Walk Around Sheet and discusses each open work order with each technician, determining whether the jobs can be completed within the budgeted timelines to adjust work assignments as needed.

“With this new process, we’re establishing expectations with our customer and sharing that information with the technicians. Rather than getting approval for work after the fact, we’re relying on IntelliDealer to help us communicate better and get work approved before it’s completed,” says McConnell. He goes on to say that Koenig Equipment is in a much better position to monitor lost technician time. “The Walk Around Sheet reflects our open work orders, and is organized by technician assignment. Now we can track when jobs are taking longer than expected or planned, and can share that information with each other and with customers.”

New Process Improving Profitability,
Customer Satisfaction, and Employee Satisfaction

Before implementing the Walk Around Process, McConnell notes that customer satisfaction with the Service department averaged 83%. “Today, that number has risen to 94%, which is a big plus for us and for the customer. With better scheduling, we’ve decreased our completion times from 6.8 days to 3.7 days, and we’re not missing jobs.”

In addition, Koenig Equipment’s Service managers and technicians are working more effectively; McConnell says “managers are more in the loop and in control, and technicians understand their priorities and responsibilities each day.”

Koenig Equipment has also seen write-offs drop significantly: “We’re writing off 38% less than we were two years ago, and our labor efficiency has gone from 75% to 84% because we’re selling more of our inventory of technician hours.” McConnell notes that 9% increase translates to an additional 17,000 technician hours sold at Koenig Equipment every year, “which makes a big difference in profitability,” he concludes.

We’re writing off 50% less than we were two years ago.”
- Matt McConnell

About Koenig Equipment, Inc.

Since 1904, Koenig Equipment has provided its Ohio and Indiana customers with high quality agricultural and turf equipment at a fair price. Today, this company has 11 locations that sell, service, and provide parts for agricultural, lawn, and garden equipment.