Tuesday, July 30, 2019

Stop Tool Theft From Wrecking Your Service Department

Open box of mechanic tools
With competition from independent shops, increasing adoption of electric vehicles, and the specter of self-driving vehicles, dealership service departments have a tough road ahead. Despite these challenges, one thing remains true: Fixed ops is the backbone of the dealership.

There are ample opportunities for increasing revenue in the service department, but there’s one issue that hurts profits and could even contribute to employee turnover: tool theft. Let’s examine how this problem affects your service drive and technicians.

Dealership-Owned Specialty Tools


If you buy a lot of specialty tools, you know that tool costs can skyrocket, especially if your shop does body work and you’re required to purchase duplicates of tools from specific brands to meet various manufacturers’ certification standards.

A rivet gun, for example, can run $8,000 to $12,000. If you own a certain brand of rivet gun and a manufacturer requires a different one, you’d have to fork out another several thousand dollars just to be able to work on a specific make of vehicle.

If you had even one $8,000 tool stolen, how long would it take you to recoup that cost?

Employee-Owned Tools


Staff attrition is one of the biggest threats to the auto mechanic industry, with 30 percent of dealership technicians leaving their jobs each year. Some even leave the field altogether. It doesn’t help that fewer people are graduating from postsecondary tech training programs.

One of the major factors deterring people from the field is the cost of purchasing tools, which sources estimate is anywhere from $25,000 to $50,000. Some technicians incur debt to pay for these tools, which takes a toll on employees’ career satisfaction.

Imagine how demoralizing it would be for an employee to have invested tens of thousands of dollars in these tools — their livelihood — only to have them stolen. Unfortunately, there have been several reported cases of this scenario happening at dealership service departments over the years:


One insurance executive suggested that businesses offer tool insurance to technicians as an employment benefit. An even better perk, however, is to help avoid tool theft in the first place.


Preventing Tool Theft


Regardless of who footed the bill for the tools in your service department, thefts will put a dent in your profits. By the time you tally up opportunity costs, insurance deductibles, and employee turnover, you’re looking at an expense that’s substantially more than the actual price tag of the equipment. To prevent tool theft, start with the tips below:

  • Require employees to lock up dealership-owned tools.
  • Encourage employees to lock their tools away in a secure location at the end of each workday.
  • Secure keys to tool chests, cabinets, or rooms where tools are stored. If you’re already using an electronic key control system in your service department to protect customer keys, consider using the system to manage tool storage keys.
  • Consider storing diagnostic scanners, tablets, and other small tools in electronic lockers that can be controlled with your electronic key control system.

By taking steps to protect the tools in your service department, you’ll not only protect your hard-earned investment but show your employees you value them. Looking for more ways to maximize your profits in the service department? Check out “How Electronic Key Control Can Help Your Service Department Get Reimbursed for Shuttle Rides.”

Tuesday, July 2, 2019

The Human Side of Poor Key Control

Man with head in hands
Would you want to be known as the organization that allowed a thief to pilfer the property with a master key? What would you say to the media if someone stole a vehicle from your organization and used that vehicle in another crime? How would you rebuild trust with customers if an employee abused their key access to steal someone’s personal information or assets? How long would it take you to recoup profits lost from reputation damage?

There are real business consequences to poor key control. But what you might not have thought about is how misuse of keys and other assets negatively affects people’s personal lives — perhaps even your own or your loved ones’ lives.

For example, lost or stolen keys waste employees’ time and inconvenience customers who have entrusted their personal property to your business. In extreme situations, mismanaging keys can even put lives at risk, such as if an intruder steals an apartment key and hurts a resident or if a thief is involved in a fatal accident while driving a vehicle stolen from a dealership.

That’s why it’s vital for your organization to secure keys and reduce security vulnerabilities. Let’s take a closer look at how poor key control impacts employees, customers, and the community.

Employees


As mentioned earlier, when keys are lost, employees are forced to spend time dealing with interrupted operations, rekeying, and more. If unsecured keys are stolen, that can spell additional trouble for staff.

For example, after a car was stolen from a repair shop in Michigan, employees were concerned that  insurance costs would increase and the repair shop would lose credibility, hurting employees’ ability to provide for their families. At a Georgia prison, mishandled keys endangered corrections officers (COs) by enabling an inmate to swipe a key and open other inmates’ cells.

Customers


Customers and stakeholders also face the consequences of poor key control. In the automotive industry, there are plenty of horror stories involving customers whose cars were stolen while they were being serviced. After one man’s vehicle disappeared from the service drive, management told the customer that if they couldn’t locate the vehicle, the customer would be stuck replacing it himself.

Just as mishandled keys in a dealership’s service drive leave customers’ vehicles at risk, improperly secured and tracked keys at multifamily communities, assisted living facilities, and college dorms leave people's homes vulnerable.

If keys aren’t stored in a secure location with proper checkout methods in place, employees, vendors, or burglars can use these keys to enter a resident's home without authorization. There are countless headlines about intruders stealing cash, prescription medications, or other personal items. Although less common, there have also been cases of violent crimes against residents.

Additionally, ineffective key management can expose customers to data breaches and identity theft if employees abuse their key access to obtain devices holding confidential data. That was the case at a medical facility where a former IT employee stole a hard drive containing sensitive customer information and sold it online.

The Community


In some cases, the effects of unsecured keys can extend beyond employees and customers to the broader community.

One common way an unauthorized key user could put the community at risk is by driving a vehicle without permission, whether it’s a company fleet car, dealership inventory, a delivery truck, or a government vehicle. If that driver is involved in an accident, they could harm pedestrians, other drivers, or city infrastructure. In one Oregon town, for example, a car struck a power pole, leaving the entire town and surrounding areas without power.

A rare, but still concerning, scenario is a prisoner using a key to escape from prison or jail, posing a danger to society. At a New Mexico jail, an inmate swiped a key that had been left hanging in a lock. He then used the key to access an area containing housing pipes, where he and three other inmates — a group that included a convicted killer and murder suspect — escaped through a hole in the roof.

While everyone is responsible for their own actions, you can take steps to avoid putting your employees, your customers, and the wider community at risk. Investing in an effective key control system is one of those steps. Most, if not all, of the examples mentioned here could have been avoided if keys were securely stored in a way that only authorized people could remove them.

When deciding how you’ll secure your keys, considering the implications to your organization is important, but don’t forget to consider how people’s personal lives could be affected by your decision.