KAR Auction Services - Brochure 2018

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.

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CONTACT US

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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