GM sees online credit and billing boost auto parts sales
General Motors Company is betting that new digital financial services will increase auto parts sales to corporate fleet managers through its dealer network.
The automaker offers fleet operators instant access to credit, consolidated electronic invoicing, extended payment terms and personalized discounts through its GM Fleet Parts Discount Program website, giving its dealers a tool to attract new customers.
To provide these services, GM works with STDs, a provider of B2B payment and credit technologies and services. More than 1,400 participating Buick, Cadillac, Chevrolet and GMC dealers, along with their fleet operating customers, will be able to access MSTS’s credit as a service (CaaS) suite of applications through the website, according to GM.
“When it comes to B2B, anything that can allow fleet managers to minimize paperwork and streamline purchasing is appreciated by dealers and their customers,” says Lance Zimmerman, National Fleet Parts Manager for GM Customer Service and Service. “It’s a way for fleet managers to have a single source of data and pricing that can help them better manage their fleet and for our dealers to attract new fleet customers. “
Process transactions valued at $ 1 million and over
Participating GM dealers can use the MSTS CaaS software suite to extend lines of credit on terms ranging from 20 days net to 60 days. While MSTS typically approves lines of credit up to $ 250,000, with the standard CaaS solution, GM will determine the limit on lines of credit available to fleet managers. Credit lines could reach millions of dollars, depending on GM preferences, MSTS chairman Brandon’s Lance said.
GM dealerships receive payment within two weeks, and MSTS takes care of all billing, customer support, accounts receivable, and recovery of missed payments. All invoices and all account portals that can display credit lines will display the GM mark.
GM Fleet Parts Discount Program offers discounts on more than 450,000 genuine GM parts and ACDelco maintenance and repair parts to commercial, government and rental fleets. Discounts vary depending on the size of the fleet and can reach up to 32%. The program was officially launched in March.
One of the benefits of consolidated electronic invoicing for fleet managers, according to Spear, is that they get an accurate record of the price they pay and the discount they receive in one place. “A big part of what we do with GM is coordinating pricing across their entire dealer network so that customers accessing the website see the pricing that’s right for them,” says Spear. “When a fleet dealer is negotiating a price, making sure the right discounts are displayed can be a challenge. We provide the continuity that ensures customers see the right price.
Management of a generalized discount program
In addition to the GM Fleet Parts Discount Program website, MSTS also provides services to GM’s FleetTrac, Mega Fleet and National Fleet Maintenance programs.
MSTS, which has been providing other services to GM since 2001, says it will charge GM a percentage of each invoice, without being more specific. MSTS fees start at 1.75% per transaction “as a benchmark,” MSTS says. This rate can be up to 40% lower than the credit card interchange fee, the MSTS website says. MSTS offers several payment options, including banking industry Automated Clearing House (ACH) transactions, wire transfers, direct debits, EFTs, checks, or cash. MSTS claims to process more than $ 5 billion in transactions per year.
“We provide a way for fleet managers to efficiently manage their parts and service purchases,” explains Spear, while relieving dealers from “worrying about billing, qualifying fleet customers for credit and management of accounts receivable ”.
Peter Lucas is a freelance journalist based in Highland Park, Ill. Who covers business and technology.
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