SEP TEMBER
2019
CONVENTION HIGHLIGHTS
Pages 9 & 10
THE OFFICIAL MAGAZINE OF THE NATIONAL AUTO AUCTION ASSOCIATION
W W W. N A A A . C O M W W W. N I A D A . C O M
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IN THIS ISSUE ON THE BLOCK MAGAZINE
VOL. 6 NO. 5
On the Cover:
Rockin’ NAAA’s 71st Annual Convention with their timeless hits and chart toppers from the ‘70s and ‘80s will be the popular gold- and platinum-record selling band 38 Special in a live concert exclusively for NAAA members!
09 Convention Highlights
Sports legend Deion Sanders, nationally recognized business author and consultant Gene Marks, and more educational and motivational sessions — plus some fun Free For Re Concert Te events — fill the agenda at the 2019 egistere d Atte Shirt NAAA Annual Convention nd
THE OFFICIAL MAGAZINE OF THE NATIONAL AUTO AUCTION ASSOCIATION
ees
Departments
04 06 07 08 11 15 16 3
President’s Message Chad recaps a championship season for NAAA and the industry.
read us online
Arbitration Corner
previous issues
Learn how to mitigate — or even eliminate — controllable arbitration claims through Value-Stream Mapping.
www.naaa.com • www.niada.com Click on ads to link directly to their websites.
Safety First Reap a return on your auction’s investment in safety training with these tips. July 2019
May 2019
March 2019
January 2019
Tech Support Good IT help can be hard to find, but not if you follow a few simple steps for contracting a managed service provider.
Auction News Independent Auction Group goes beyond the chain-link fence in discussing security; ADESA introduces natural language search on its website; Manheim unveils its first all-digital auction live in the lanes at its Tucson location; numerous new faces appear in executive roles; and more.
On the Block Wants To Hear From You. Tell Us What You Think! On the Block encourages its readers to send comments, opinions and suggestions about the publication.
Blah Blah What does Habitat for Humanity, the Greater Carolinas Chapter of the American Red Cross, BC Children’s Hospital and St. Jude Children’s Research Hospital all have in common? Gifts of support in time and money from generous auction volunteers and fundraisers!
Letters can be emailed to naaa@naaa.com. Include your full name, address and phone number. We may be unable to publish some submissions and may edit submissions for length and clarity. This is a great opportunity to hear back from our readers on what you think about the articles and what topics you would like to see covered in future issues.
Foundation Center
Visit us on Facebook & LinkedIn
Auction Community
A tip of the mortarboard to the dozen outstanding students selected for the Warren Young, Sr., Scholastic Foundation scholarships for the 2019-2020 academic year.
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PRESIDENT’S MESSAGE
A Championship Season Time sure flies when you’re having fun! I’ve enjoyed serving you as National Auto Auction Association president so much that I need an instant replay just to recall all that we’ve done this year. Our biggest feat in 2019 takes place next month as we return to tradition and host our own annual meeting. You asked, and we delivered. Our 71st Convention will be a great time to share, listen, learn, network and grow as we come together in Indianapolis to conduct the important work of NAAA. I pledged as your president I’d always be interested in listening to what’s on your mind. I’ve worked to keep that promise by maintaining lines of communication, whether through auction visits, phone calls, conferences and even my regular dispatches from “Chad’s Corner.” CAR was epic, from the special breakfast that raised more than $15,000 for NAAA’s political action committee to meeting two real, inspiring — and humble — American heroes, former Green Beret Mark Nutsch and police officer Ron Johnson. It was an honor to have them speak at our NAAA events. We also hosted some other productive meetings this year, including the Safety Summit in Dallas, an Auction Standards Summit, and two days in Washington, D.C., meeting with congressional leaders and their staffs during our annual Day On The Hill advocacy cam-
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paign. At NIADA’s conference, I was privileged to serve as the moderator of a lively panel discussion on “Bricks, Mortar & Beyond: The 21st Century Independent Auction.” Also this year saw the launch of NAAA’s newest online service, AutoAuctionJobs.com, to help job seekers connect with member auctions that have jobs to fill. While we’ve had many wins in 2019, the NAAA team suffered a couple of major losses, with the passing of two dedicated association members, Past Presidents Jim DesRochers and Dave Angelicchio. They are greatly missed.
Chad Bailey President
There’s so much more left on the replay reel that I could go on and on, but I need to return to the live commentary to say a sincere, heartfelt “Thank You” to all of you — from my fellow executive officers and NAAA staff to those members who volunteer and participate in the association — for making this a championship season! It has been a real honor to serve as the coach of Team NAAA.
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ARBITRATION CORNER
The Best Arb is
NO ARB!
possible point in the process. Both prevention (design and process) and detection (self and audits) were included for you purists out there. Having conducted By Matt Arias a healthy root-cause America‘s Auto Auction Assistant Vice President of their history from of Operations arbitration causes to disclosures, we managed to help the seller best understand how to reach their goals while minimizing their arbitration risk. Why is this as an “auction operator” important? Helping others help themselves affects the auction. As an intermediary, we have an obligation to help sustain and/ or improve the transparency of the auction transaction. Less policing of sellers and their subsequent arbitration claims is a good thing! Buyers can trust the seller, so your auction spends less time in arbitration and more time managing the business!
I know, I know… that’s easy to say. So at this year’s CAR Conference, I presented some prescriptive advice on how to mitigate costly arbitration claims. Turns out it wasn’t the anticipated “snooze-fest” I thought it would be and it generated a ton of healthy feedback. As always, I like to share our feedback for the greater good; here’s a summary of those comments.
gaps of where they are versus where they want to be can happen. You probably already can guess our findings… A seller must sustain or improve the brand and squeeze every dollar they can from the vehicle using ethical disclosures along with realistic pricing. A buyer wants to source inventory cost effectively. For both, little or no arbitration risk.
During the conference I referenced the importance of Value-Stream Mapping. This is an essential tool that enables the team to see their entire process flow. Some in the audience exclaimed, “It’s everything we do!” It helps better understand the areas that are value-added versus not. It ties all departments and the organization together. Breaking processes down is easy. It’s a procedure of identifying, classifying, sequencing and visually depicting the duties by department and/or operator necessary to create a value-added step.
As a seller, from the starting point to the end, we asked four basic questions:
We made a process map. We did the usual combining when we could as well as splitting things up.
Multiple departments are involved with managing disputes at auctions. Sync or Sink! Dig into those reasons why a claim is triggered (both valid and invalid) and zap those gaps!
Recently, a large family of dealerships asked to have an “outside” review of their activities as both a seller and as a buyer at the auto auctions they frequent. Having established goals with them, the root causes for the
We stressed “Quality at the Source,” which is a good philosophy that basically places the responsibility for meeting internal and/or external “guests” (thanks Kelly Sampson for the term) requirements at the earliest
For more information and training, please visit www.NAAA.com or register to take the NAAA Auction Standards Training classes regularly offered throughout the year.
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1. What type of process is this? 2. What is being done in this step? 3. Where does the process go from here? 4. Are there multiple paths of arrival and/or departure from task to task?
If you can mitigate or eliminate controllable arbitration claims every week by (insert your number here), it will save you (insert your dollar amount and time spent here) a decent amount. If you can improve on that from week to week, then that month will look way better.
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SAFETY FIRST
Want an ROI on Your Safety Training? Hold Staffing Services to Same Standards A return on investment is always expected and tracked as investors expend resources to buy stock, real estate, or commodities. Given the emphasis on safety in the auto auction industry since 2015, when the National Auto Auction Association adopted the Safe T. Sam training program developed by KAR, it would seem that, collectively, there should be a ROI to the industry. The story has unfolded in ways that are a bit incongruous as we look across the spectrum of the auto auction industry. While many auctions have adopted Safe T. Sam and evolved from making safety a priority to instilling it as a true company value, others took a bit longer to get on board the safety platform. At this point, few are lagging behind; in fact, some of the latest to join are bringing the freshest, most innovative ideas to the table in implementing the instructional program and fine tuning the processes that take out some of the initial inefficiencies of safety certification onboarding and renewal. That’s the good news. The issue that muddies the water in regard to improved claims experience and safety results is the lack of training of staffing service employees and the onerous underlying contracts that leave the auction on the hook when under-qualified and poorly trained staffing service employees cause an accident. Last year was a rough one for pedestrian claims and staffing service drivers at the auctions. Frankly, staffing
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services have not been held to a high standard in respect to the quality of drivers who’ve been provided to the auctions and the loss experience reflects it. Throw in a contract that requires the auction to hold harmless and indemnify the staffing service for any claims arising out of the temporary employee’s negligent operation of a vehicle, and it becomes a bit of a “head scratcher” as to the perceived advantage of using a staffing service. While staffing service drivers alleviate the need to hire and maintain part-time drivers who have long been tough to maintain by the auction, under-qualified and ill-trained temps cause many more problems than they solve. Be aware that OSHA requires employers to train temporary employees to the same level as regular employees. Claims involving staffing service drivers become difficult to defend on the auction’s behalf when they’re not trained prior to operating a vehicle whether on or off premises. The remedy to the situation is for the auction to use and train its own employees or secure more favorable terms with the staffing service. NAAA’s free, online Safe T. Sam program provides a mechanism to train the sale-day-only driver, which should always be done prior to putting a temp behind the wheel. Performing audits on staffing service-supplied drivers to verify their driving record and Safe T. Sam certified status should be a standard practice to hold the
service accountable for providing qualified, trained drivers.
By Mike Rohdy Arthur J. Gallagher & Co. Area
We’ve witnessed aucPresident - Auto Auction Services tions dig deeper into several metropolitan markets and they’ve discovered that when there is competition among staffing service providers, the contractual concessions become much more attainable, which should be a primary focus of any auction that uses a staffing service. As the insurance markets show signs of hardening, particularly in commercial auto and garage coverage, it will benefit those auctions conducting robust safety training programs and negotiating favorable contracts with staffing services to highlight these measures and initiatives to their respective and prospective insurance carriers. Your insurance professional should be leading the charge to inform the insurance marketplace of all the steps you’ve taken to become a best-in-class risk. With the industry continuing to focus on safety awareness and accident prevention in the auction workplace, shoring up weaknesses in the current staffing service relationship will propel more favorable claims experience. Reaping a return on investment is not a spectator sport when it comes to safety, risk management, and insurance.
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TECH SUPPORT
.. . But Were Unsure to
Everything You Wanted to Know About Contracting IT Support If you’re like most businesses, your IT systems have morphed through time from something just for the bookkeepers to use into a hydra with cyber tentacles enveloping every part of the company. Tech support needs that were adequately addressed in the past by your accountants and your niece, nephew or the neighbor’s kid, have become overwhelming, demanding more robust structure and technical sophistication. So, how do you determine what kind of human resource you need, how do you find them, and what kind of credentials, experience and security should you expect of them? First, let’s talk about what resources are available in most markets. Many small-to-medium businesses work with a Managed Service Provider or MSP. An MSP can range from “body shops” that provide various levels of skilled resources on an hourly basis, which you’re expected to manage, to turnkey organizations that will manage your entire infrastructure, systems, software and personnel. Some will even include in their fee structure technology upgrades for your hardware and software. If your operation is large enough, you may have already created your own, in-house group to manage your critical infrastructure and systems. For the purposes of this article I’m going to talk about those who either haven’t done this or have realized it’s not something they can administer and want to turn it over to an outside “expert.” First, how do you determine what level of support you need? The single biggest factor is your own in-house technical competence. Do you know exactly what your needs are, but just can’t find the MSP on your own, or just need them temporarily? Then the “body shop” approach is right for you. They’ll either have on staff or ready access to experts in most subject areas and can provide them on an hourly, weekly or monthly basis. Some will even let you directly hire that person after a 3- or 6-month contract period if you desire. Don’t know what you need (and most people don’t)? Then you’ll want to use a phased approach. First, you’ll need to hire a consultant to analyze your current and future needs, then determine what the best method is to address them. (This is something we at RDS do on a regular basis for clients). This should be a collaborative process where you and key members of your staff work with the consultant because they’ll need to not only understand what you’ve got right now, but where it’s falling down in meeting your current needs. In parallel with that effort, the consultant will help you articulate where you as a business want to go and what your future system needs will be to achieve that goal. Out of this process should come a clear set of requirements to be met now and over the planning horizon. The consultant then would assist you in developing
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By Jeff Rollins President, Rollins Data Systems
ASK
the appropriate documents and selection criteria for choosing the right provider at the right cost and terms for your business. They should also help you find a provider in your market to approach for the job. They can often manage the selection and procurement process for you as well. But what does this helpful consultant look like? You’ll want someone who has experience with all facets of IT: Networking, Hardware, Operating Systems, Databases, etc. They also should be business savvy, ideally someone who has worked with IT systems and can bring operational and process improvement experience to the table.
Your IT systems are the repository for much of the institutional knowledge of your business; an investment in the right team to support and grow them could be one of the most critical investments you’ll ever make. Jeff Rollins, founder and principal of Rollins Data Systems, has more than 40 years experience in domestic and international IT systems design, implementation and support. Located in the Washington, D.C. Metro area, RDS provides consulting and implementation services for all facets of IT, from assessment of current staff, networks or systems, to guidance in system design, implementation and development.
IN MEMORY
They of course need to understand your systems, but they also must understand how they interact with and support your business processes. A background in Six Sigma (Process Improvement) would certainly be a plus. They should also carry adequate errors and omissions insurance as you are putting your future in their hands. And just how do you find this paragon of computer technology? A good source for a recommendation will frequently be your accountants; they will often have experience with firms in your area and can help guide you to one they have confidence in who may well have knowledge of your industry. Another good source would be your state or local community college; they usually have a department head for Computer Science who will either provide consulting services themselves or can refer you to someone in your community who can.
Dave Angelicchio July 25, 1951 – July 7, 2019 2010 NAAA President 2017 NAAA Hall of Fame Recipient
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CONVENTION HIGHLIGHTS
‘U Gotta Believe’ to Achieve!
2019
Sports legend Deion Sanders will share his formula for professional and personal success as NAAA’s 2019 Convention Keynote Speaker During his college days Deion Sanders conceived a saying that helped him have the confidence to be an outstanding athlete in football, baseball and track. Following his motto of “U Gotta Believe!” to achieve took him to professional heights in a brilliant sports career and brought him through some personal lows in darker private times. Sanders will share that inspirational message of belief from his experiences as a two-time Super Bowl Champion, World Series ballplayer, television sports analyst and divorced single parent with members of the National Auto Auction Association attending its 71st Annual Convention. The sports legend will deliver his motivational keynote speech during the luncheon on Wednesday, Oct. 2, at the JW Marriott in Indianapolis, Indiana. Born on August 9, 1967, in Fort Myers, Florida, Sanders began competing in organized baseball and football at the age of eight. As a student at North Fort Myers High School he was all state in football, baseball, and basketball. Although selected in the sixth round of the 1985 MLB draft by the Kansas City Royals after graduating, Sanders enrolled in Florida State University instead. During his college career Sanders focused on two sports, leading the Seminoles baseball club to the College World Series and its football team to the Sugar Bowl. Yet he also found time to run track, helping the team win a conference championship. He finished college as a twotime All American in football and as a recipient of a 1988 Jim Thorpe award. His professional sports career began when he was the fifth draft of the Atlanta Falcons in 1989, going on to
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play14 NFL seasons with the Falcons, San Francisco 49ers, Dallas Cowboys, Washington Redskins and Baltimore Ravens. He was named to nine Pro Bowls and became a two-time Super Bowl champion, first with the 49ers in 1995 and then the Cowboys in 1996. Sanders has the distinction of being the only person in professional sports history to play in the Super Bowl and the World Series by also having a baseball career with the New York Yankees, Atlanta Braves, Cincinnati Reds and San Francisco Giants. Popularly known to the media and his fans by his nicknames “Prime Time” and “Neon Deion,” he was inducted into the Pro Football Hall of Fame in 2011. But professional fame and fortune did not always bring personal happiness as Sanders details his struggles with divorce, emptiness, and a failed suicide attempt that lead him to a renewed faith-based lifestyle in his bestselling autobiography “Power, Money & Sex: How Success Almost Ruined My Life.” Following the conclusion of his athletic career, Sanders serves as a television analyst for CBS Sports and the NFL Network, appearing on “NFL GameDay,” as well as “Thursday Night Football” and “21st and Prime.” A man of faith and a philanthropist, Sanders now dedicates his life to helping children. He established the TRUTH Youth Academic & Sports nonprofit organization that gets kids off the streets and into sports, and holds a summer football camp. With Stand Together, Sanders has launched Prime 5, a $21 million fundraising initiative to support for-purpose organizations that can empower Dallas residents to transform their lives and find a path out of poverty.
More Sessions to Motivate and Educate
In addition to Keynote Speaker Deion Sanders and nationally recognized Business Consultant Gene Marks, NAAA’s 2019 Annual Convention offers these exciting breakout sessions: “General Session” Sponsored by ADESA Wednesday, Oct. 2, 9:30-10:30 a.m. “Awareness in the Workplace” Sponsored by Manheim Wednesday, Oct. 2, 10:30-11:15 a.m. “Dealers’ Future from the Top” Sponsored by The Independent Auction Group Thursday, Oct. 3, 2:00-3:30 p.m.
Luncheon Wed., October 2 11:30-2:00 p.m. Keynote Speaker
Deion Sanders
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CONVENTION HIGHLIGHTS 2019
The Man to Help You Plan
Nationally recognized business consultant Gene Marks discusses “Trends Beyond 2020” at NAAA’s 2019 Annual Convention Named “one of America’s best places to go and eat in 2019” by Food & Wine Magazine and “The Most Underrated Food City in America” by Conde Nast Traveler, Indianapolis offers a feast for foodies attending NAAA’s 2019 Annual Convention. But with more than 300 diverse restaurants — from an old-school steakhouse, authentic German biergarten or kosher deli to a brightly colored brunch spot, outdoor dining on the reservoir or upscale farm-to-table dairy bar — it’s hard to know where to start! To help you with your dining decisions during the convention, Visit Indy, the official host of Indianapolis, lists the following eateries voted by residents as the Top 25 locally owned restaurants that best represents their city:
• St. Elmo Steak House
• Bru Burger Bar
• Shapiro’s Delicatessen
• Café Patachou
• Bazbeaux Pizza
• Jockamo Upper Crust Pizza
• Yats
of top business leaders are carrying out to grow their companies. Using the most current events and up-to-date information, he’ll share the latest political, economic and technology trends that will impact auto auctions next year and in the near future — plus actionable takeaways for meeting those challenges of tomorrow.
• Mama Carolla’s Old Italian Restaurant
• Harry & Izzy’s
• Bluebeard
• Livery
• Goose the Market
Marks has authored six books on business management, writes for Forbes, Inc. and Entrepreneur magazines, The Philadelphia Inquirer, The Hill, and The Guardian, and is a regular guest on MSNBC, CNBC, Fox News, and SiriuXM Radio. He is a former longtime columnist for both The Washington Post and The New York Times.
• Milktooth
• The Rathskeller
• Union 50
• Rick’s Café Boatyard
• Caplingers Fresh Catch
After graduating from Lehigh University’s College of Business with a degree in economics and studying at University College London, Marks became a certified public accountant. He spent nine years in senior management with the entrepreneurial services arm of the international consulting firm KPMG prior to launching his own business in 1994.
• Iaria’s Italian Restaurant
• The Tamale Place
• Good Morning Mama’s Café
• Napolese Pizzeria
• Tinker Street Restaurant & Wine Bar
• Mesh on Mass
Today, The Marks Group, PC, is a 10-person company specializing in customer relations management that provides technology and consulting services to small- and medium-sized businesses.
• Mimi Blue Meatballs
• Traders Point Creamery
Thursday, October 3, 9:45 am – 10:30 am What is the one thing the most successful business owners, executives, managers and leaders have in common? They’re always looking ahead. While executing their plans for the current year, they’re already thinking of the years to come, asking a variety of questions: How will I navigate my company through potential economic downturns? What impact will the next national election have on my company and industry? What investments should I be making? What technologies should I be considering? As a business leader, you know it’s your job to be prepared, not just for the sake of the company’s prosperity, but also for all those relying on you for their livelihoods. Your employees, partners, customers, suppliers — and their families — count on your leadership to ensure your business will continue to thrive and grow regardless of whatever challenges the future holds. To help you with that daunting responsibility, NAAA’s 2019 Annual Convention offers an all-chapter members’ presentation on “Trends Beyond 2020” by nationally recognized consultant, columnist, author, and small business owner Gene Marks. In his fast-paced, funny and energetic style, Marks will reveal the tactics, strategies and ideas that hundreds
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You can find more information about each restaurant at VisitIndy.com.
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AUCTION NEWS
MORE THAN A CHAIN-LINK FENCE With thousands of vehicles and millions of dollars being exchanged by buyers and sellers every day at auto auctions in the United States, security is a crucial component of the remarketing process, whether vehicles are bought and sold on a digital platform, or in the auction lane. “Certainly, the physical security of the vehicles being bought and sold is the first step in instilling customer confidence,” says Chad Bailey, president of the National Auto Auction Association and third-generation owner of Akron Auto Auction. “The auction’s brick-and-mortar, physical facility is an important element in providing that security.” Bailey explains that unlike other market transactions — stocks or pork belly futures for example — the automotive trade is a physical one. At issue is a 3,000-pound piece of metal that occupies a 10- by-20-foot parking space, which must be secured and inventoried. In the early years of the industry, security was as simple as a chain-link fence around a lot. But today the methods of providing security for the vehicles at auction are as hightech as it is comprehensive. “Property and fencing are just the first steps, along with digital tools to protect the vehicles on the lot,” Bailey notes. “Added to that are sophisticated inventory control systems that facilitate the check-in/check-out of every asset and track the locations of vehicles. Yet another layer are the cameras that transmit images of the vehicles as they cross the block, allow online buyers to view the vehicle, record the auction process, and facilitate the review of auctioneers’ and clerks’ handling of bids.”
Independent auctions focus on digital as well as physical security to safeguard their customers’ trust
All these tools, which are an integral part of the infrastructure of the facility, contribute to the auction’s physical security, but an even more key piece to creating a secure environment is safeguarding the financial transaction each time a vehicle is bought and sold. “Sellers entrust our auctions with their assets and ownership documents, assured that they will be paid promptly, while buyers rely on us to transact their purchases smoothly, delivering the vehicles as they were represented, with the right equipment, in the same condition, and with a good, negotiable title,” says Lynn Weaver, executive director of the Independent Auction Group, which is comprised of 194 physical auctions across the country. He explains that independent auctions are able to assume this major fiduciary responsibility by engaging trusted industry partners such as AutoTec, Auction Insurance Agency, AutoCheck, and Auction Access, which employ successful and time-tested procedures that protect titles and guarantee checks. In today’s digital world, protecting information has become increasingly important, Weaver observes. Maintaining the confidentiality, integrity and availability of the information that is part of the financial transaction, as well as the significant data carried by the vehicles themselves, is an equally critical responsibility. “IAG auctions have a long history with countless financial institutions all over the country, and have focused
tremendous effort and resources to institute procedures far beyond meeting federal government requirements, which has resulted in the development of a strong and pervasive culture of compliance,” Weaver says. “Our commitment to security includes processes that secure not just the physical asset, but protect the financial transaction and safeguard the information that flows from it as well.” Independent auctions are well capitalized and operate using their own financial resources, and it shows in the way they do business, notes Jeff Barber, president of State Line Auto Auction in Waverly, New York. “There’s a lot of value into being able to walk into an auction in the morning with a check and leave with a car and title, or to drive a car to the auction and leave with a check that day,” he says, adding much of that is also owed to fostering a long-term personal relationship with the customers. “Most independent auctions have been bringing buyers and sellers together for a long time, and they’ve earned the trust of their customers, which has been built over many years — even generations — of treating them like friends or family,” says Barber, a second-generation auction owner himself. “You’re doing business with a company with decades of experience, working with experts in the business whose family names back their operations, and have earned a place of trust and respect in the industry.”
ADESA Enhances Its Website With New Industry-Leading ‘Natural Language’ Search Function ADESA has introduced a new “natural language” search functionality on its ADESA.com website that makes finding vehicles dramatically faster, easier and more robust. The new search capability can return up to 400,000 vehicles in less than two seconds — six times faster than before. Mirroring the search engines used by the world’s leading technology and e-commerce companies, the natural language function is a first for the automotive remarketing
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industry, said ADESA Chief Information Officer Rick Griskie. “The most crucial activity for dealers sourcing inventory is vehicle search, so we poured our energy into creating an industry-leading natural language search function that utilizes Elasticsearch,” Griskie, explained. “Our search now rivals anything you’d find in the online shopping space. It works even when customers misspell
an entry. Plus, it learns from itself, quickly adapting to help buyers more effectively with repeated use and giving customers more of what they want and less of what they don’t want.” Paired with ADESA.com’s advanced filter options and canonical database, the search enhancement substantially reduces the time spent looking for the right vehicles, improving productivity and thus profitability for dealers regardless of their size or sales volume. www.naaa.com
AUCTION NEWS
Manheim Launches Its First All-Digital Auction To drive greater efficiencies for clients while creating a safer auction experience, Manheim debuted its first all-digital auction with a ribbon-cutting ceremony in May at its Manheim Tucson location. The new four-lane format is a live auction where rather than driving vehicles through the lanes, they remain parked and are offered for sale by an auctioneer via oversized monitors featuring enhanced images, barcode price scanning capability and condition report information. This innovative auction experience provides a digitally advanced, comfortable setting where buyers and sellers can bid in person or online using Manheim Simulcast. The inaugural sale included more than 300 online and in-lane bidders and achieved an approximate 76 percent sales conversion rate. “Bringing the excitement of the auction to clients in a live, all-digital format is a key move in our broader digital strategy,” said Manheim President Grace Huang. “With advanced vehicle information and imaging, we’re able to deliver digital solutions that create greater confidence and efficiencies while offering a safer auction experience for everyone.” Manheim’s first all-digital auction is a natural evolution of its digital strategy. While Manheim Tucson is the first site to implement this new technology for an all-digital auction, Manheim has been adopting digital lanes at sites across the U.S. with more than 100 already in place. Manheim Tucson predominantly handles dealer vehicles under $5,000, which can be challenging to sell through digital channels such as Manheim Simulcast. Manheim Tucson was chosen to prove that an all-digital auction could appeal to all types of buyers and work for all vehicle
Manheim Tucson becomes the company’s first 100-percent digital site where vehicles remain parked and are offered for sale by an auctioneer via oversized monitors featuring enhanced images, barcode price scanning capability and condition report information. price points by creating a digital experience as close as possible to a physical sale. “I see the benefits and efficiency of digital lanes — no emissions in the lanes, and the increased safety that comes with moving to a digital auction help prevent accidents from happening in physical lanes,” said Vinnie Da Cruz of Simply Sell it Now, located in Tempe. “In an industry such as the reselling of automobiles, to not accept technological growth is almost certain death.”
The location’s all-digital launch supports Manheim’s goal to offer clients greater choice, tools and convenience when doing business in the Manheim Marketplace. “Our team was so excited to be part of creating a new chapter in our company’s history,” said John Duplanty, general manager, Manheim Tucson. “Our main priority was to work closely with our clients, preparing them for the change and helping them realize higher conversion and retention performance. This has been a big win for our buyers and sellers.”
Preferred Warranties Inc. Has New Vice President of Sales Allison Marley has been named vice president of sales at Preferred Warranties Inc. (PWI), a business unit of KAR Auction Services Inc. In this role, Marley will lead the PWI sales and training team, interact with key customers and partners, and activate the national sales structure through her team of six regional sales managers. “Allison is a dynamic and strategic leader who will accelerate and revolutionize PWI’s sales strategy,” said PWI President Edmund Field. “She has the vision to create and execute momentum in existing markets and launch strategy for new market expansion. By developing and empowering the sales team, she will drive revenue, increase market share and achieve company growth metrics.” Allison Marley
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Marley has more than 15 years of experience in the automotive industry. Most recently, as senior director of performance management at NextGear Capital, she pivoted the company’s business methodology from a transactional sales process to a consultative sales approach. Her background also includes marketing, operations, sales, and financial management positions for automotive powerhouses such as Ford, GM, Toyota and Mercedes-Benz. Established in 1992, PWI offers extended service contracts and extensive coverage levels to more than 3,000 independent automotive dealers. To supplement these product offerings, PWI provides best-in-class service and training to assist dealers selling those products, which in turn creates value and enhanced satisfaction for their customers.
.com www.naaa.com
AUCTION NEWS
New Executive Leadership at ServNet satellite feed and then through Online Ringman. ServNet auction owners were instrumental in the development of Auction Pipeline, which was launched in 2006 and has since become an industry standard. “This is a tremendous time for John and me to join again with ServNet and to be part of its forward momentum,” said Sullivan. “As we focus on driving ServNet’s operating capabilities and growth, we are equally inspired by the opportunities for ServNet to embrace John Brasher Bob Sullivan the new tools and methods that are Industry veterans John Brasher and Robert Sullivan have taking the auction experience to new levels: mobile been appointed to head ServNet’s executive team. They technology, the virtual marketplace, digital channels, will assume leadership of the auction group on Jan. 1, 360-degree imaging and data analytics. We look forward 2020. Brasher has been named executive director, while to a new chapter and an exciting future.” Sullivan will serve as administrative director. ServNet President-elect Bruce Beam, who will take the “We are delighted to welcome two individuals of such reigns as president in October, explained the appointments caliber and standing in the auction industry to ServNet’s follow ServNet’s decision to move to an executive director executive team,” said ServNet President Eric Autenrieth. system after Pierre Pons announced he would step down “Both John and Bob have years of experience in the at the end of 2019 as the group’s chief executive officer, a industry and are champions of the independent auction. post he has held since 2007. His firm, TPC Management, Both former owners of ServNet auctions themselves, has concurrently provided administrative management they bring unique and valuable perspectives to their new services to the ServNet group of auctions. leadership positions.” “We have great admiration for Pierre and the TPC team, As owner of the Brasher family of auctions before their and are grateful for his dedication to our group,” said acquisition by ADESA in 2016, Brasher had been actively Beam. “He has worked tirelessly to fortify ServNet as an involved in many of the initiatives sponsored by ServNet. organization and to strengthen ServNet’s position in Two Brasher auctions were founding members of ServNet the industry.” in 1988. Having been the steward of the ServNet brand for the past Sullivan was managing partner of Chattanooga Auto Auc12 years, Pons said he was pleased to pass the torch to two tion, which was an early member of ServNet as well. He veteran former ServNet auction operators. “I really believe served a two-year term as ServNet’s president from 2004 that no one can represent the organization better than to 2006, and has worked as a consultant for a number of someone who has owned and operated a ServNet auction ServNet auctions in recent years. location,” he said. “John’s and Bob’s industry credentials are unparalleled and I know they will continue to build “We believe in the independent auction, and have the and strengthen ServNet in this quickly changing industry. highest regard for the leadership role that ServNet has Our team in Franklin, Tennessee, will be working diligenttaken in the vehicle remarketing world,” said Brasher. ly to ensure a smooth transition over the coming months.” “ServNet auctions have always been among the innovators in the industry, and will continue to shape the nature of The ServNet Auction Group is a network of strategically the auction business. It’s exciting to work with Bob in our located, independently owned wholesale auto auctions. new capacity as ServNet’s executive team, to encourage For more than 30 years, ServNet member auctions have and support the rising generation of auction owners and been working together to provide a full range of remarto carry forward the work to keep ServNet auctions strateketing services to its customers, including auctioneers, gically relevant in a rapidly evolving industry.” inspections, reconditioning, transportation assistance and inventory financing. Brasher noted that ServNet auctions were the first in the industry to develop Simulcast auction selling, initially via
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Upgrades to Manheim Express
Help Dealers Buy and Sell Inventory Faster
One of the latest enhancements to Manheim Express is the growing Concierge force to provide personal assistance to more dealers in listing their vehicles for sale through digital channels With dealers increasingly turning to digital channels to buy and sell vehicles on their time and terms, Manheim continues to scale support for its Manheim Express mobile app to help make it even easier for dealers to tap into its wholesale used vehicle marketplace. Based on dealer feedback and increased demand, Manheim has made three enhancements to the Express mobile app. “We launched the Manheim Express app because we heard our dealer clients wanted access to the Manheim Marketplace in the palm of their hand,” said Derek Hansen, vice president of Offsite Solutions at Manheim. “The response from dealers has been phenomenal, and we’re continuing to bring new features and services that help make it even easier for them to buy and sell when and where makes the most sense for them.” The first upgrade involves Manheim Express Concierge Service. Launched nationwide in February, Concierge Service provides dealers with a dedicated expert to help them sell vehicles more efficiently in the wholesale marketplace. Just a few months after launching across the country, the Concierge force is growing nearly 80 percent based on dealer demand for expert guidance and a hands-off way to get their vehicles listed quickly. A second update to Manheim Express is the expansion of “Make an Offer” functionality. With this enhancement, dealers can select any combination of purchase options they want to offer potential buyers, ranging from “Bid,” to “Buy-Now” or “Make an Offer.” This gives dealers more flexibility in how they market their vehicles, helping to make their listings more appealing to a larger group of potential buyers. Finally, Manheim’s Trade Desk team is also expanding. Created to build relationships with buyers and serve as their “personal shopper,” the Trade Desk team works to identify vehicles of interest for buyers and help close deals for sellers. Advanced search technologies allow Trade Desk team members to proactively reach out to buyers and match them with Manheim Express inventory that is likely to appeal to them. www.naaa.com
AUCTION NEWS
PAR North America Selects Drew Shull as Sales Team Leader Drew Shull has been named vice president of sales and client experience for PAR North America. PAR, a business unit of KAR Auction Services Inc., is a leading U.S. provider of vehicle transition services with coast-to-coast solutions for recovery management, skip tracing, remarketing and title services. This appointment aims to help create new client relationships and foster PAR’s existing customer base.
and product offerings, while leading the sales team. Shull and the sales team are responsible for implementing client retention initiatives, driving results and expanding PAR’s product portfolio. Prior to joining PAR, Shull served as regional manager at AFC, a KAR business unit, where he led the 12-branch Midwest region with an automotive floorplan portfolio of $200 million. While at AFC, he coached and mentored branch managers on sales strategies, relationship building and integration of new products from the KAR Auction Services portfolio of brands. He also led the Mobility Branch, an international business opportunity for rental cars, fleet cars, rideshare and retail subscription programs. He also worked in various sales and financial positions before becoming part of the KAR family.
“At PAR, we’re working to transform the asset recovery industry and grow our footprint,” said Lisa Scott, PAR North America president. “With 19 years of sales experience, Drew’s proven track record of providing internal and external partners with value is just what PAR needs at this time in our industry. His passion and drive will help take PAR’s product and services to the next level.” Shull will be based in central Indiana and will report directly to Scott. In his new role, he will focus on enhancing PAR’s client experience
Drew Shull
Tony Markese Named Vice President of Manheim Reconditioning Manheim has appointed Tony Markese vice president, Reconditioning, where he will be responsible for setting the company’s strategic direction for its reconditioning services. This move supports Manheim’s goal of growing its quality reconditioning operations to prepare for emerging growth in the digital and mobility sectors.
In his new role, Markese is tasked with ensuring the company attracts and retains top automotive technicians across its nationwide network — a major challenge as the industry faces a projected shortage of qualified technicians. But with the company’s partnership with the TechForce Foundation, as well as a forthcoming apprentice program for new and aspiring technicians, Markese is confident in Manheim’s future technician workforce.
“Reconditioning is a significant part of our business and is growing fast as the mobility landscape shifts and new entrants come onto the scene,” said Fredrick Standfield, senior vice president, Assurance and Reconditioning, at Manheim. “With the fast-paced transformation of the automotive marketplace, Tony’s exceptional ability to manage change and help his teams and clients envision the big picture make him the ideal person to lead this growing area of our business.” Markese brings deep operations experience and industry knowledge to the position. He joined the company in 1998 as controller at Manheim Orlando and went on to serve as general manager at several Manheim operating locations in Florida. Promoted to vice president, Operational Excellence, in 2012, he helped lead large, transformational projects, including the $400 million initiative to modernize Manheim’s operating locations.
Congratulations
ADESA Boston 14
Tony Markese
Markese’s new role is designed to strengthen operations and reconditioning processes to meet growth in the emerging fleet and mobility sectors.
Manheim continually invests in its reconditioning shops, people, processes and technology to meet growing industry demand. In addition to reconditioning services that support the vehicles within the Manheim marketplace, over half of Manheim’s physical locations now offer reconditioning services that help dealers get their vehicles in front-line condition, enabling the company to produce over 100,000 retail-ready vehicles since 2015.
2019 NAAA Chapter Auto Auction of the Year Winners
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“We know what bright futures automotive technicians can have, especially at a company like Manheim, which offers training, support and opportunities for career growth,” Markese commented. “Between our internal programs and external partnerships, we’re doing everything we can to promote this important career path and highlight the role it will play in the future of mobility.”
Louisana’s 1st Choice Auto Auction
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AUCTION COMMUNITY
KAR Holds a Habitat for Humanity Panel Build
Hundreds of KAR Auction Services employees helped a deserving homeowner turn sorted piles of wood into the frame of her new home through a Habitat for Humanity “panel build” in the parking lot of the company’s Carmel, Indiana, headquarters.
few hours with many able hands,” said Becky Doemland, director of community relations and corporate social responsibility communications for KAR. Habitat for Humanity provided skilled and knowledgeable staff — including their “Tiger Team” of experienced volunteers — to give direction throughout the project. Volunteers from KAR served as set-up crew, check-in staff, nail captains, nail-station teams and teardown crew.
The panels were then moved to the home’s site in the Near Northside neighborhood of Indianapolis, where the home will be built in just a few months. “It was amazing how much work we were able to do in a
Manheim Statesville and Remarketing by Element Partner to Provide an Emergency Vehicle to the American Red Cross For the second year in a row, Manheim Statesville’s exceptional efforts in the annual “Race to Give” charity program resulted in the donation of an emergency response vehicle to the Greater Carolinas chapter of the American Red Cross. The 2019 Chevrolet Malibu donated by Remarketing by Element further expands the organization’s emergency response fleet used to deliver supplies and services to disaster victims in the two-state region. Since 2016, Manheim and Remarketing by Element have partnered in the national charity campaign where Manheim locations across the country organize creative fundraising activities in a friendly competition that culminates with a vehicle donation by Remarketing by Element
to the winning location’s Red Cross chapter. Over the past three years, Manheim’s collective fundraising efforts have generated more than $350,000 and the donations of five Red Cross fleet vehicles. “Compassionate community partners like Manheim are essential to helping us meet our mission to alleviate human suffering in the face of emergencies,” said Angela Broome Powley, chief executive officer for the American Red Cross Greater Carolinas Region. “Their support allows us to mobilize volunteers and provide hot meals and shelter when there is nowhere else to turn.” Manheim Statesville emerged as the top auction location this year by raising $40,500 in addition to organizing blood drives, collecting hurricane relief supplies, installing smoke alarms, and stuffing 150 teddy bears for the Red
Cross to give out to children at local shelters during times of natural disaster and when they respond to home fires. “Our 450 team members feel it’s important to extend Manheim’s corporate partnership with the American Red Cross to the local level by helping individuals and families in our own backyard,” said Manheim Statesville General Manager Ellie Johnson. “These vehicle donations, along with the other activities that support our Red Cross chapter, demonstrate the deep commitment we have to the community where we live and work.” Paul Seger, Element Fleet Management’s vice president of asset marketing, added, “We often think of the American Red Cross as a national organization, but their hyper-local response helps individuals and families in communities every day. We’re humbled to support the services they provide to people facing dark moments due to disaster.”
Manheim Statesville’s exceptional efforts in the annual “Race to Give” charity program resulted in the donation of an emergency response vehicle to their local chapter of the American Red Cross.
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AUCTION COMMUNITY
FOUNDATION CENTER
Managers of ADESA Vancouver Present Donation to BC Children’s Hospital During Live Telethon
Congratulations 2019 Scholarship Recipients America’s Auto Auction Scholarship Student: Keith W. Dabroski State Line Auto Auction
Black Book Scholarship Student: Jacob D. Robertson State Line Auto Auction
Ruth Hart-Stephens Memorial Scholarship Student: Anne W. Dabroski State Line Auto Auction
Midwest Chapter Scholarship Student: Kimberly E. Paquette ADESA Flint
Indiana Auto Auction Scholarship Student: Mary Grace Bookmyer Indiana Auto Auction
ADESA Vancouver General Manager John MacDonald (center) and General Sales Manager Marc Bergevin (right), with Chloe and Jackson, present a $19,000 check to BC Children’s Hospital during their appearance on the Miracle Weekend live telethon broadcast. Representatives of ADESA Vancouver presented a check for $19,212 to BC Children’s Hospital during the 32nd annual Miracle Weekend live telethon. The auction had collected money for the gift during the past year by selling donated vehicles and participating in various hospital foundation fundraising programs. As British Columbia’s only child-focused hospital, the
facilities and equipment are some of the best in the world specialized for kids and has made a great impact on many families in the region during difficult times and is a household name that resonates with many local residents. Its “Miracle Weekend” is an appreciation event for all of the hospital’s major donors that have contributed in the last year, and everyone gets a quick spot on live TV. In total, $21 million was raised for the hospital.
ADESA Nashville raises $14,500 for St. Jude Children’s Research Hospital ADESA Nashville’s third annual Cars-n-Kids Charity Auction raised $14,500 for St. Jude Children’s Research Hospital with a two-day event. At a golf outing attended by about 150 dealers, participants enjoyed lunch and a round of golf at the Hermitage Golf Course, followed by dinner, awards and a charity auction. All proceeds went to the hospital. During the next day’s charity sale, more than 1,000 units crossed the block — a record for ADESA Nashville. Dealers were also treated to a guest appearance from Harley-Davidson Financial Services, just in time for summer riding.
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Ken Osborn Auction Education Scholarship Student: Alec S. Anderson KAR Auction Insurance
Auction Insurance Agency Scholarship Student: Chandler E. Greene Greensboro Auto Auction
Manheim Scholarship Student: Matthew P. Wozniak Manheim
Southern Chapter Scholarship Student: Manav C. Matthews Manheim
Western Chapter Scholarship Student: Frederick D. Schoentheler DAA Northwest
Carolina Auto Auction Scholarship Student: Mazarine Penzin Auctions In Motion - Thousand Oaks
XLerate Group Scholarship Student: Hailey J. Smedley ADESA Nashville Office Manager Jeff Cale (right) presents the check to Reah Aitken, regional development director, and Chelsea Elliott, regional development representative, from St. Jude Children’s Research Hospital.
ADESA Brasher’s
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