While there’s been a lot of focus on how the COVID-19 pandemic has impacted automotive retail sales and inventory management strategies, it has also dramatically affected how dealers transport vehicles to their dealership lots. The pandemic shut down many transporters due to the drop in vehicle volumes and state mandates that grounded their businesses. As retail numbers and wholesale activity have picked up, the need for transportation has increased. Here to discuss how Manheim is helping dealers meet this demand is Joe Kichler, vice president of Manheim Logistics, where he oversees business strategy and operations for Ready Logistics.
For context, in the month of June, Manheim Logistics saw the following transportation activity:
There were approximately 40,000 more transportation posts on Central Dispatch than the previous record high.
Ready Logistics hit a monthly record, with nearly 35% of all business now serving dealers, a 50% growth in that segment year-over-year.
The average vehicle move before COVID-19 was around 400 miles for Ready Logistics. Now, we’re seeing the average at around 450 miles, likely because more dealers are buying wholesale inventory digitally than before.
In order for Manheim to help dealers keep their vehicles moving, Joe says that they are improving the transportation experience with technology and data. Currently, the focus is on vehicle tracking, pricing transparency, carrier sourcing, and load capacity.
Manheim’s Joe Kichler Discusses Ramping Up Transportation Activity to Meet Wholesale Demand