2020 was the year vendors switched from physical to digital remarketing. What’s the feedback you’ve had from them?
It’s been incredibly positive. We’ve converted a lot of vendors who perhaps didn’t think digital remarketing was for them. Many now don’t see the need to go back to physical auctions.
The same applies to many of the professional buyers who have seen the value of having a more productive week by engaging with digital platforms, rather than visiting physical auction sites.
In your conversations with vendors, what were some of their initial concerns about defleeting digitally and how have they been overcome?
Initially, some were worried that not having the physical touchpoint, as well as digital might negatively impact their residual values. We’ve been able to prove that’s just not the case.
Some of the key benefits of upstream remarketing include savings in cost and time. Have you been able to deliver meaningful reductions in both to new customers?
Definitely. We have offered customers the option of self-inspecting their stock using our AI-powered ADESA IVI (Intelligent Vehicle Inspection) tool. We then put their stock on our ADESA UPSTREAM platform, which has seen vehicles sell within 24 hours.
Another large group asked us to inspect cars for them. We did this using IVI and sold all the cars the same afternoon on ADESA UPSTREAM; this meant the group was paid on the same day.
We have demonstrated to main dealers that we can take out the cost of sending cars to physical auction, significantly reducing the time vehicles are on their books and improving their cash flow.
How is this rollout of IVI to Customers progressing?
We launched ADESA IVI for dealers in April, as we started to come out of the lockdown restrictions, and the feedback has been fantastic.
Since then, dealers choosing to self-inspect their stock are telling us just how easy IVI is to use, as it only requires the ability to point a camera, using a phone or tablet, linked to our app. It doesn’t require a trained inspector.
The inspected vehicles are then available on ADESA UPSTREAM within hours, rather than days or weeks. We streamline the process and the vendors appreciate that.
In summary, IVI is adding to an already great customer experience with ADESA UK.
This year you expanded your defleet operations in Scotland by partnering with QA Vehicle Solutions; how has this benefitted your customers?
Our vendor partners in Scotland no longer have to transport their vehicles south, which is what some were previously doing with their auction partners. This has reduced transport costs and provided them with a far more efficient de-fleeting service.
For ADESA UK, it means we’ve been able to significantly grow our business in Scotland where we are now working with new vendor partners.