TELETYPE

CARS, INC. EMPLOYS TELETYPEWRITER LINK to process auto dealers’ daily business overnight case history:

The retail automobile business has changed fast. COMPUTERIZED AUTOMOTIVE About half as many dealers today as two decades REPORTING SERVICE, INC. ago now sell twice as many automobiles. And retail BIRMINGHAM ALABAMA sales are predicted to total about 10.5 million cars by 1970.

No longer is a dealership a one-man operation. Today’s dealer manages a staff of specialists. To assist him for a more profitable operation is a new service, CARS, Inc., that provides a modern auto¬ mated accounting and inventory system.

By using a Teletype Model 33 ASR (automatic send- receive) set and a high speed paper tape reader, a dealer can have on his desk each morning a detailed operating report for the day before and for the month to date. With the same Teletype equipment, he reports his entire daily business activity for com¬ puter input and processing on an overnight basis.

Several leading magazines are featuring the story of this important service developed by CARS, Inc.

For information about leased services featuring Teletype equipment, consult your local telephone or telegraph company. Or, to purchase, contact our Sales Organization at the general offices address listed on the back cover.

When ordering input-output terminals for your data processing systems, be sure to specify Teletype equipment—your vital communications link.

© 1968 by All Rights Reserved AUTO DEALERS ness of his people, and to increase FEWER DEALERS, MORE RECEIVE LOW-COST profits. BUSINESS CONTROL REPORTS DAILY Nationwide, CARS, Inc. offers the When Williamson began searching FROM COMPUTER VIA automobile dealer—large or small for a better way to manage his —a fast, accurate daily operating dealerships in Alabama, Florida, TELETYPEWRITER LINK and inventory control, and a man¬ Louisiana, and New Jersey about agement report service. It is keyed five years ago, he became aware of to Teletype equipment and regular some revealing facts. business telephone service that transmit data between individual Less than 20 years ago about dealerships and a central on-line, 49,000 auto dealers sold about four EXCLUSIVE DATA semi-real time computer. The sys¬ million cars annually. Today, HANDLING SERVICE tem was developed with assis¬ about 28,000 dealers sell eight to PROVIDED BY CARS, INC. tance from Southern Bell Tele¬ nine million cars a year, and this “People are more effective and phone and Telegraph Company number is expected to reach about management can make decisions data communications specialists. 10.5 million in 1970. But only about based on facts.” the same number of dealers, or The reports give the dealer facts even fewer, will be doing this in¬ This sweeping assertion is wel¬ with which to manage his business creased business—and paper come news to all automobile deal¬ on a day-to-day and month-to- work. ers faced with piles of paper work month basis—or when he needs when they hear about a new elec¬ them. And this service, in most in¬ Concentration of more volume tronic data communications ser¬ stances, costs him less than the with fewer dealers has forced to¬ vice for processing accurate profit salaries of two experienced secre¬ day’s dealer from a near one-man and loss statements every day. taries or office girls. operation into the role of a busi- The comment comes from John Williamson, President of Comput¬ erized Automotive Reporting Ser¬ vice (CARS), Inc., and a franchised new car dealer. Backing him up is Beverly P. Head, Jr., investment counselor and once general superintendent of a gro¬ cery chain where he learned about inventory and management con¬ trol. Head is board chairman and one of the founders of CARS, Inc., along with James R. Forman; Jr., a Birmingham attorney, and Thomas W. Perry, general dealership oper¬ ating manager for dealership enter¬ prises associated with Williamson, Head, and Forman. “Using a computer to do instan¬ taneously what takes hours and hours of labor is the only way to go,” is Head’s comment. What he and Williamson referred to at the Birmingham, Alabama, headquarters of CARS is how to handle the accelerating business of Beverly P. Head, Jr., chairman, and John Williamson, president (left), head CARS, Inc., the automobile dealer so that the which they developed to make business better through computerized record keeping dealer knows what to do to remain for the nation’s automobile dealers. CARS provides the only fully alphanumeric com¬ competitive, increase the effective¬ munications system for electronic data processing that is available to auto dealers. At the computer center, the daily tape-coded transactions of six Each daily transaction—from a parts ticket to a new car dealerships are received simultaneously over private business tele¬ sale or bank deposit—is entered into the individual dealer’s phone lines. The computer contacts (polls) each dealership via Wide records from his office by a part-time operator using the Area Telephone Service (WATS). There is no additional toll charge compact Teletype Model 33 ASR (automatic send-receive) to the dealer. Bell System Data-Phone Service is employed for the set. The -like keyboard allows the operator to high-speed, tape-to-tape transmission. It now takes about 25 minutes punch a tape in proper form as data information is re¬ from initial transmission of the first dealer’s data to the computer to quested by a control tape. She sees on the teletypewriter the return of the last dealer’s daily profit and loss statement to his page immediately what is punched in tape, and can correct office each morning. any errors.

ness manager administering the One of the key needs that emerged The second accounting service is services of a sales manager and was for an operating control report more comprehensive for large salesmen, shop manager and me¬ on a daily basis in time to be of dealerships. A daily operating con¬ chanics, clerks and accountants. real value to the dealer. This ob¬ trol statement shows the dealer his viously meant utilization of fast, cash flow inventory movement, de¬ Keeping costs down and profits up accurate two-way communications partment performance, and other is a major responsibility and a between an individual dealer and operational data, along with nor¬ challenge in this fiercely competi¬ the CARS, Inc., computer center. mal accounting records and tive business. Add to this the rec¬ monthly analytical management ord keeping, including detailed The solution was found through reports. A dealership, with this monthly financial reports to the the use of Teletype communica¬ service may receive up to 70 sepa¬ dealer’s automobile manufacturer, tions equipment. This then made rate items that can be fed back to and the problem becomes acute. it possible last year for CARS, him daily and include anything he Inc., to put into operation a new wants that is in his system. It became so serious a problem electronic data processing service that the manufacturers in recent for individual dealers on an over¬ Parts inventory control and parts years have recommended auto¬ night basis. And it gave the dealer ordering services can be adapted matic accounting and inventory for the first time in this or any to requirements of any size dealer¬ control systems to their dealers to other industry, a daily operating ship. ease the work load, and have stan¬ control or a daily profit and loss dardized reporting procedures. All three services have optional statement. features to fit needs of any dealer. In 1964, Head, Williamson, For¬ i With this kind of information, man and Perry, long-time personal many profit improvement oppor¬ friends and business associates, THREE SERVICES TO FIT NEEDS tunities are at hand for the pro¬ combined their experience and Three dealer services are of¬ gressive and profit-minded dealer. started work on an answer to the fered. Two of these are account¬ But unlike other reporting ser¬ problem. Eventually they worked ing and the third is parts inventory vices, the CARS system has three out a program and discussed it control. significant advantages. with automobile manufacturers and about 55 key dealers, their One accounting service especially CARS offers the exclusive advan¬ business managers, parts manag¬ helps small dealerships. It pro¬ tage of daily reports on an over¬ ers and auditors. From these dis¬ vides all normal accounting data night basis without requiring a cussions developed the final prob¬ for monthly reports to the automo¬ costly investment in computer lem definition that resulted in the bile manufacturer, and a limited equipment or in additional clerical CARS, Inc., services. daily operating control. and bookkeeping help. The continuous looped control tape re¬ peats its questions automatically if more than one entry must be recorded for the same kind of transaction when data is prepared for computer processing. Each entry is treated as a separate and com¬ plete document. In a single operation, from the same typewriter-like keyboard, the Teletype equipment punches a sepa¬ rate tape that contains both questions and answers for transmission to the computer. The combination tape is wound on a reel (lower left) automati¬ cally as it is punched.

Although data is transmitted auto¬ PRIVATE, AUTOMATIC matically at high speed to the TRANSMISSION computer and teletypewriter re¬ ports are returned at 100 words a In operation, the CARS computer minute, any business activity doc¬ at St. Louis, Missouri, and the in¬ ument out of balance is rejected dividual dealerships communicate by the computer and never gets over each dealer’s private business into the system. telephone line.

Not only is the erroneous docu¬ There are no telephone toll charges ment rejected, but the computer to the dealer. CARS utilizes Bell lets the dealer know the next System Wide Area Telephone Ser¬ morning which document is out of vice (WATS) lines. This permits balance, and whether it is wrongly the computer to call—or poll—six coded or has a bookkeeping error. or more dealerships at a time for Only when the correct information incoming data and to return com¬ One Buick dealership, for instance, is supplied will the computer ac¬ pleted individual reports, three or needs only one girl part-time to cept the data and incorporate it more at a time. prepare input information so that into the dealer’s reports. the computer can produce account¬ For feeding data to the computer, ing information that it would take The efficiency of the operation lies auto dealers punch all required two and one-half additional full¬ in the use of Teletype equipment daily accounting and inventory time girls with some bookkeeping that CARS employs, and its auto¬ facts into a paper tape, using the experience to produce without the matic and unattended transmission Model 33 ASR keyboard. At the CARS, Inc., system. capability. end of the business day, the tape Another major dealership doing is placed in the Teletype high¬ Equipment for CARS service is in¬ speed tape sender. Later that eve¬ about $8 million in annual sales, stalled and maintained by the obtains its parts inventory control, ning, the computer dials the deal¬ dealer’s local telephone company. er’s number, causing automatic all accounting and management The equipment package includes a records, and customer billings with transmission of the tape. Incoming Teletype Model 33 ASR (automatic data is stored on a memory disc at input time taking only about four send-receive) set and the Teletype hours daily. the computer center until time for high speed tape reader that trans¬ processing. Prior to input, all documents are mits at 750 words a minute (75 costed for entering into the system characters a second). All trans¬ Once information is processed, it is as each sale or service is com¬ mission is via Bell System Data- sent back to the dealer via the pleted. This is not nearly as time Phone Service. The only charge same telephone circuit and printed consuming, however, nor does it which the dealer pays directly to out on his teletypewriter. require the skill that bookkeeping the local telephone company is the and accounting records require. regular monthly service charge for Information not required for the a private business phone line. daily operating control report is Secondly, CARS offers the only stored on magnetic tape until the alphanumeric system available in The ASR set’s four-row keyboard appropriate 10-day or monthly today’s automobile market. This is similar to that of a regular office management reports are needed. alphanumeric capability is of great typewriter and is easy for a good These are printed out and mailed importance to future data commu¬ typist to use. The set incorporates to the dealer as required. nication possibilities. a send-receive page printer, a paper tape punch and a paper tape It takes about 25 minutes of reader. Operating at a speed of 100 elapsed time for the computer to ERROR-FREE OPERATION words a minute, the unit uses the collect information from dealers, The third CARS advantage is the U.S.A. Standard Code for Infor¬ prepare reports and send them error-free operation of its system. mation Interchange (ASCII). back. CARS, Inc., teletypewriter control tapes The dealer’s daily transactions, punched are standardized for electronic account¬ into paper tape, are rewound on a storage ing systems recommended by General reel, and the tape inserted in the Teletype Motors, Ford, and Chrysler. The tapes are high-speed tape sending unit. During the kept handy in the storage cabinet that night, the tape transmitter is activated CARS provides to dealers. A single, com¬ automatically by the central computer at bined control and information tape is St. Louis, Mo., where the data is received transmitted by a compact Teletype high¬ and processed. The transmitted tape feeds speed, tape reader at 750 words a minute through a chute to a protective bin from (75 characters a second). which it is retrieved for temporary filing by the dealer. The cabinet provides file space for the page-print reports showing each day’s data preparation.

This report would also indicate to the service manager when to sug¬ gest car maintenance, or to the sales manager and his salesmen when to suggest a new car. Inven¬ tory reports on parts not only show the manager the turnover, but what and how much he should order to maintain a complete, but minimum inventory. A special advantage for the ac¬ countant is detailed horizontal ledger posting with customers identified by name as well as by BUILT-IN ACCURACY CONTROL out the answers, a single paper account number. And a special tape of the combined information service provides for the prepara¬ The CARS system uses a number is punched for actual transmission tion monthly of individual cus¬ of individual teletypewriter con¬ to the computer. tomer statements in quadruplicate trol tapes to ensure reporting or duplicate. accuracy when data is being pre¬ “With the Teletype equipment pared for transmission. The oper¬ communications system,” summa¬ CARS has further dealer services ator at the dealership uses a spe¬ rizes Head, “we can link the indi¬ under development for even great¬ cific tape for each business activity vidual dealer’s daily operations to er efficiency. It is working and and transaction. When operated in a computer that can do more, do it plans to install soon a direct or¬ the ASR set’s tape reader, it causes faster, and with greater accuracy dering system so that through the page printer to type out ques¬ than by manual means. This frees CARS the dealer may order his tions (indicative information) one people to handle other work and parts directly from the manufac¬ at a time for the data information more business without the need to turer. This will save a number of the operator is to provide. The add personnel.” days in parts order transmission data is digitally coded for the com¬ time. Another possibility is to puter’s benefit. transmit auto sales and warranty EVALUATES INDIVIDUAL claims to a central computer which Each control tape represents a PERFORMANCE will relay the data to another complete single document, indicat¬ computer for action and provide ing the start and end of one trans¬ Even personnel performance can even more efficient operation. action, i.e., a repair order, a parts be measured. Management reports counter ticket, a car invoice or any can show the dealer the business Meanwhile, CARS offers the only other business recorded during the volume of individual salesmen, service to automobile manufactur¬ day by the dealer’s employees. service advisors, and mechanics, ers and dealers that uses a high¬ and the amount of their profit con¬ The operator types in the proper speed, two-way Teletype equip¬ tribution by the day, the month, ment communications system with information requested, and can see and by type of transaction. immediately on page copy both the a full alphanumeric capability for question and her answer. This is a One of the management reports is electronic data processing. This visual check for errors, and she a complete customer follow-up re¬ two-way data communication is a can correct any before they go into port which lists service, new car basic requirement for future effi¬ the system. Simultaneously, as the or used car, customers who have ciency between the automobile Teletype set prints out the control not been to the dealership in 90 to dealer, his service computer cen¬ questions and the operator types 120 days or in 120 to 150 days. ter, and the manufacturer. TELETYPE

machines that make data move

TELETYPE CORPORATION • Skokie, Illinois • Little Rock, Arkansas • Washington, D.C. General Offices: 5555 Touhy Avenue, Skokie, Illinois 60076 • Telephone: 312 676-1000 • TWX: 910-223-3611 and : 25-4051 (both have 24-hour automatic answering service). Government Liaison Office: 425 Thirteenth Street, N.W., Washington, D.C. 20004 • Telephone: 202 ME 8-1016.

CARS10M868 Printed in U.S.A.