Remarketing: Benefits of Outsourcing Vehicle Logistics

At Carpool Logistics, we pool cars!

One of the critical components of a successful remarketing strategy is reliable transport service. Auctions have strict guidelines to meet. Delivery timelines are important no matter their customers, whether it is a financial institution or a fleet account. For auctions, transporting vehicles is a necessary evil but it requires a very well thought out strategy.

Car hauling has an extremely fragmented pool of transporters. 89% of car hauling capacity is represented by transporters with five units or less. For auctions to efficiently manage vehicle transport, they need to partner with a logistics company that has the expertise, local transporter relationships and the technology to make the complex transport process seamless.

Fleet/Lease Units

Most of the fleet/lease units are either located at a repossession lot, dealership or at a fleet client’s residence. Coordinating shipping schedules and assigning proper equipment to haul vehicles involves a lot of orchestration. Sometimes units are located at a residence. These pickup locations require timely communication to coordinate schedules and align car hauler accessibility into the residential areas.

Repossession Lots

There are some specifics about repo lots that need to be taken into account. Vehicles at repo lots require transporters to coordinate a pickup window with at least 24-hour notice. Some lots can only accommodate specific equipment due to the size of the lot and some have limited hours to release vehicles to transporters.

In addition, approximately 50% of the units at repo lots do not have keys. Those vehicles require either a rollback or transporter with a winch. Partnering with a logistics company that has the expertise is the key to successfully execute auction’s transport strategy.

Outsourcing Vehicle Transportation

Auctions benefit by partnering with an auto logistics company with established local transporter affiliations. It is difficult to coordinate the transportation of vehicles while keeping track of timely pickups from multiple origins. The extremely fragmented pool of transporters makes this task even more complex.

Generally, auctions manage local pickups in-house, either with their own drivers or with local transporters. However, for auctions that have units 100+ miles away, an in-house fleet isn’t as beneficial, due to the empty miles. Outsourcing transportation of vehicles, located more than 100-mile radius of the auction, is the most efficient strategy for auto auctions.

Transporter Partnerships

At Carpool Logistics, we specialize in building partnerships with regional transporters to make the shipping process seamless for auctions. As much as technology helps make the transport process more efficient this is still a people business and customer service is paramount. Building relationships with our transporter partners is of the utmost importance to us.

Transporters are always looking for consistent business, attractive loads, good rates, and quick payment terms. We are continuously trying to meet transporters’ key objectives. Our transporter partners can expect a courteous interaction and support from the Carpool team, to manage any challenges that arise.

Attractive Loads & Rates

At Carpool, we pool cars! Our strategy is to grow density in specific geographic areas by partnering with a large group of auctions and dealers. Our optimization technology allows us to bundle single vehicle shipments into loads and create more attractive shipments for our transporter partners.

By bundling vehicles, we optimize the trailer space and time for transporters. Our model saves them from having to search for additional vehicles to fill their trailer. We also work with transporters to minimize empty miles and find them backhaul shipments to keep them moving. Optimized loads help transporters increase their earnings and turnaround time.

Coordinating Transport

We also manage appointment scheduling and coordinate with the loading locations to make the experience for drivers as pleasant as possible. We ensure drivers are aware of the shipping location’s guidelines, so we are also meeting their expectations.

Often, drivers arrive to load an inoperable vehicle with no keys, flat tires and steering wheels locked with no access to the inside of the vehicle. Additionally, if the vehicle is an all-wheel drive that makes the loading process even more challenging.

Our team can guide drivers showing them how to overcome these obstacles. Sharing information to safely put the vehicle in neutral without damaging it. Sometimes, we will even have a tow truck load the vehicle if the driver is unable to get it loaded.

We try to anticipate challenges and proactively solve them to make the process seamless for our customers and transporters. If we know a tow yard has limited loading hours, we may have the vehicle pulled out to a different location so the driver can still get it loaded on time. We do what it takes to get it done.

Payment Terms

Finally, we have the most attractive payment terms in the industry. We pay our transporters in 48 hours via ACH and do not charge a fee. We prioritize partnerships and look to build lasting relationships with our transport partners. We offer attractive terms but also expect quality service with fast turnaround times.

As Michael Porter explained in “What is Strategy?”, the essence of strategy is about making choices, trade-offs; it\’s about deliberately choosing what not to do. Auto auctions’ core focus is to sell vehicles, outsourcing vehicle transportation to a logistics company is the right strategy. Auctions could leverage high volume of shipments to lower transportation spend, increase speed, and improve service levels. Optimizing logistics will create a significant competitive advantage for the auctions.

Carpool Logistics

Carpool Logistics is an experienced and dependable partner for the independent auctions. We partner with auctions and understand the requirements and expectations for various remarketing stakeholders. Our logistics experts leverage local transporter partnerships and technology to optimize vehicle shipments.

Working with multiple auctions allows us to bundle vehicle shipments. These existing relationships enable us to offer competitive pricing and reduce the total shipping timeframe. Carpool Logistics’ digital platform provides vehicle pooling, route optimization, and status visibility for our auction partners.

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