Enterprise
optimisation
KAR
with
Enterprise
optimisation
KAR
with
We talk to Ronald Wright, Senior Director of Procurement and Enterprise Optimisation at KAR Auction Services who talks us through the ever-evolving landscape of auto auctions‌
W
orking across more than 300
(AFC), among others – are at the heart
locations in North America,
of this vibrant marketplace, providing
KAR Auction Services
wholesale and salvage auctions as well
comprises a family of companies
as detailing, dent repair, logistics,
providing innovative, technology-driven,
transportation and more. With opera-
end-to-end vehicle remarketing
tions spread across North America as
solutions. Auto remarketing is a big
well as the UK, implementing a compre-
business in North America, with 290
hensive, enterprise-wide procurement
million used vehicles currently in
strategy is a strategic imperative.
operation across the continent. KAR
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KAR’s unique platform supports the
and its subsidiaries – which include
sale of more than 5.5mn units valued at
ADESA, Insurance Auto Auctions (IAA)
over $40bn through its auctions.
and Automotive Finance Corporation
Ronald Wright is Senior Director of
Enterprise Optimisation at KAR and it
be optimisation of how we bring value,
is his job to ensure support and supply
again, we’re there. If there needs to be
across the company. Just don’t use the
optimisation in cost, we’re there. That’s
dreaded ‘p word’…
why we’re enterprise optimisation.
“We don’t even use the word
We’re not sourcing, we’re not a supply
‘procurement’ here,” he says, speaking
chain, we’re not procurement. Moreover,
from his Indiana office. “We call our
this umbrella of enterprise optimisation
operation ‘Enterprise Optimisation’. We
allows us to come to you with a variety
don’t talk about procurement because
of skills and solutions in the space.”
that’s too narrow of a focus of what we
A former procurement specialist
do. If there needs to be optimisation of
from the US defence industry, Wright
a process, we’re there. If there needs
outlines the operational pillars that
to be optimisation of a particular
have helped his team optimise KAR’s
project, we’re there. If there needs to
growth. “Our team today operates on 05
w w w. k a r a u c t i o n s e r v i c e s . c o m
four pillars: teamwork, adaptability,
auction block. We have to check
innovation and trustworthiness. The
each vehicle in when it arrives at
questions we always ask are: what are
our facility, we have to upload its
our customer’s needs? What are their
information into our system, we
requirements and how do we bring
have to line the vehicles up in the
those requirements efficiently and
order they’re scheduled to be
effectively to our partners in the
auctioned, and we have to drive
marketplace, so that we can achieve
them across the auction block.
the overall goal?”
We also handle all the transac-
This notion of Enterprise Optimisation
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tions and all of this is happening
sees a shift from the traditional sense
at a facility within a four-hour
of procurement as a cost-saving
period, which requires anywhere
measure to a broader, more holistic
from between 100 to 120 temps.
approach. “Our CFO is a unique senior
Outside of that four-hour
manager, because his first goal is to
window, during the rest of the
bring value to the organisation. His first
week we have employees
goal isn’t, ‘Hey, how much money can you
handling mechanical work,
save?’ He does want us to save money,
detailing, body shop work and
but he’s more concerned about the
more – and we have temp
intrinsic value that we can bring to the
employees helping with other
organisation and our customers. That
things going on around the lot.”
doesn’t always mean the lowest cost.”
To help with labour demands
Some of the biggest challenges
KAR has fostered partnerships
facing Wright come from the constantly
with some key suppliers. “One of
expanding and retracting need for
our vendors helps us replace
labour. “We run physical auctions all
windshields on vehicles. Our
52 weeks of the year. As an example,
business is about velocity,
say I have an auction that regularly runs
moving cars quickly through
1,500 cars in a roughly four-hour period.
our ecosystem and this vendor
Now, they need a lot of labour to be
has been working with us on a
able to get those cars across the
number of system enhancements
BIO
“WE’RE SEEING THE CHANGING DYNAMICS OF THAT ONLINE BUYER WHO DOESN’T PHYSICALLY COME TO OUR AUCTIONS” — Ronald Wright, Senior Director of Enterprise Optimisation
SUPPLY CHAIN LEADER Delivering multimillion-dollar savings, achieving on-time and on-budget project delivery for sustainable competitive advantage. Innovative, analytical, and customer-focused Supply Chain Executive with MBA and 15+ years of successful leadership of large-scale, mission-critical projects that achieve revenue, profit, and customer expectations. • Expertise all facets of supply chain management (plant operations, production, quality control, raw materials, and finished goods warehousing, distribution, transportation, and logistics). • Keen ability to analyze global commodity cost drivers, “should cost” vs. negotiated and standard costing, and total cost of ownership (TCO). Outstanding results in supplier sourcing, relationship management, and performance management. • Recognized as a results-focused leader who sets ambitious goals, fosters collaboration, and motivates employees to peak performance. Highly effective in leading cross-functional project teams and task forces. Specialties: Certified Purchasing Manager, Project Management, MS Office, Mergers and Acquisitions, AS 400, JD Edwards, SAP and other ERP solutions, Supply Chain analysis, product development with supply chain focus and Raytheon Six Sigma Specialist
w w w. k a r a u c t i o n s e r v i c e s . c o m
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Click to watch: KAR Makes $250,000 Contribution to Central Indiana City Life Wheels’ 09
to make us better. Vehicles now have
rapport with them and have a
cameras everywhere and there are 10 to 12
successful working relationship
different types of glass. Our vendor partner
in place. We want to be nimble
helps us to mistake-proof the process of
and goal motivated. It is important
replacing windshields in the digital space, thus
that we have good communica-
increasing the pace at which we do business.”
tion with our supplier partners
KAR also runs mechanical shops at many
and a strong understanding of
of its physical auctions that do oil changes,
what is expected. We can’t work
tyre replacements and other modifications
with a supplier that doesn’t have
as requested by sellers and buyers, an area
at least a national footprint or
where Wright sees possible partnerships.
a digitised information system.
“We’re working to build stronger, more
That system should track the
strategic partnerships with key suppliers, but
progress of our working relation-
we can only do that once we’ve established a
ship so we can track any deficienw w w. k a r a u c t i o n s e r v i c e s . c o m
SAFELITE MAKES GETTING YOUR GLASS FIXED EASY With more than 70 years of service, Safelite knows auto glass. Safelite was founded at a single location in Wichita, Kansas in 1947 and has grown to become the largest auto glass specialist company in the United States with more than 720 locations nationwide. From front and rear windshields to side glass, we’re proud to serve 6 million customers every year. Whatever your auto glass needs may be, there’s a good chance we can fix it through repair or replacement.
CONTACT US
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Toll Free: 800-800-2727
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FOLLOW US
Web: www.safelite.com
cies and find opportunities for improvement.” “For me, I can’t be involved with a supplier
with your customer. We’ve been trying to move most of our
that doesn’t have the ability to give us what I
suppliers to some type of digital
call consumable, visualised data that we can
interface where we can order
do something with. I need a supplier to be
product. I would almost liken it to
able to tell us that we have a pretty large
what we call the Amazon effect.
battery spend, so we are able to drill down to
Nowadays people are used to
the details of our battery spend to types of
going online and being able to
batteries we’re ordering, where we are
search and order the things they
buying them, and which areas of the com-
like and need.”
pany are buying the largest amount. You
“The second part of that is the
need that clarity in order to be able to find
increased level of expectation
value and efficiencies.”
from the customer. Two-day
“One of the unique things about our space today is how our industry is changing overall. We’re aligning our business and what we do
delivery is standard. ‘We’ll get that to you in a week.’ - ‘Huh? A week? Are you in the
with our suppliers while also meeting the
Stone Age? I need to go some-
internal needs of our customer. If you’ve ever
where else’.”
been to an auction house, you’ll know that usually a bunch of people watch a car come across the block before bidding on it. Now, we simulcast all of our auctions across North America, so people are able to bid online. We’re seeing the changing dynamics of that online buyer who doesn’t physically come to our auctions. We’re working with businesses to look at different ways to deploy our services to our customer base.” How has technology influenced that, specifically? “I would say in two areas. The first area is how you interact and interface w w w. k a r a u c t i o n s e r v i c e s . c o m
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13085 Hamilton Crossing Blvd Carmel, INK 46032 T 800-923-3725 www.karauctionservices.com