OPENLANE's Transport Tool Aims to Make Online Auction Buying More Efficient

February 25, 2009

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MENLO PARK, Calif. — With the online auction platform becoming more and more crucial to dealers in remote areas, OPENLANE recently shared how its acquisition of the CarsArrive transportation has helped the company improve the efficiency of its online transactions for dealers and consignors.

Basically, by combining its online transaction platform with CarsArrive transportation solution, OPENLANE has provided smoother end-to-end management of the vehicle purchase and transportation for both dealers and carriers.

Citing an August white paper study by the Boston Consulting Group, OPENLANE indicated that transportation is the No. 2 auction-related concern for consignors.

"Without a comprehensive transportation strategy, the pricing and floor-planning services of any online auction are rendered useless because ultimately, the success of the transaction ends with the buyer receiving the car, and if the buyer has to arrange transportation separately, it can increase the time to delivery and increase administrative headaches with regard to possible delays and any subsequent arbitration of the vehicle," officials stated.

And these days, thanks in part to the increase in online transactions, vehicles are being transported far greater distances.

For instance, the average unit purchased on OPENLANE in 2004 traveled 450 miles. Now, through the services of the CarsArrive Network, the average distance is 740 miles, a 70-percent upswing.

Additionally, CarsArrive's load factor is one of the industry's lowest, officials noted, because the service is designed to optimize transport loads to match available local freight.

Discussing CarsArrive in more detail, officials noted that the carrier network consists of 4,500 companies, employing roughly 30,000 trucks.

Michael Briggs, founder of the CarsArrive and the director of transport solutions at OPENLANE, heads this program and aims to ensure that the transportation needs of consignors and dealers are met and that the process of moving purchased vehicles is made easier.

"When you think of the entire online transaction process, there are so many variables that contribute to a seamless and efficient experience," Briggs pointed out. "But no matter how organized the front-end of the transaction is, the entire sale hinges upon the final delivery of the vehicle.

"If that doesn't happen in a timely manner, then the customer is unlikely to go through an online auction to purchase a vehicle again," he continued. "Through our transportation services and leading-edge technology, we are ensuring that cars are delivered in the most efficient way possible."

This week, Briggs is participating in the "How to Reduce Transportation Costs While Increasing Efficiencies" panel at the Conference of Automotive Remarketing, where he will be joined by other industry leaders.

For more information, visit www.openlane.com.

Auction/Wholesale