WWW.NIADA.COM

WWW.NAAA.COM

THE OFFICIAL MAGAZINE OF THE NATIONAL AUTO ASSOCIATION AUCTION AUTO NATIONAL THE OF MAGAZINE OFFICIAL THE

Pages 9 & 10 & 9 Pages

CONVENTION HIGHLIGHTS CONVENTION SEPTEMBER 2019 SEPTEMBER 2 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com IN THIS ISSUE ON THE BLOCK MAGAZINE VOL. 6 NO. 5

On the Cover: Rockin’ NAAA’s 71st Annual Convention with their timeless hits and chart toppers from the ‘70s and ‘80s will be the popular gold- and platinum-record selling band 38 Special in a live concert exclusively for NAAA members!

Convention Highlights 09 Sports legend Deion Sanders, nationally THE OFFICIAL MAGAZINE OF THE recognized business author and consultant NATIONAL AUTO AUCTION ASSOCIATION Gene Marks, and more educational and motivational sessions — plus some fun Free Concert Tee-Shirt events — fill the agenda at the 2019 For Registered Attendees NAAA Annual Convention Departments

President’s Message Chad recaps a championship season for NAAA and the industry. read us online 04 www.naaa.com • www.niada.com Click on ads to link directly to their websites. Arbitration Corner previous issues Learn how to mitigate — or even eliminate — controllable arbitration claims 06 through Value-Stream Mapping.

Safety First 07 Reap a return on your auction’s investment in safety training with these tips. July 2019 May 2019

Tech Support Good IT help can be hard to find, but not if you follow a few simple steps for 08 contracting a managed service provider.

Auction News March 2019 January 2019 Independent Auction Group goes beyond the chain-link fence in discussing On the Block Wants To Hear From You. Tell security; ADESA introduces natural language search on its website; Manheim 11 Us What You Think! unveils its first all-digital auction live in the lanes at its Tucson location; numerous On the Block encourages its readers to send new faces appear in executive roles; and more. comments, opinions and suggestions about the publication.

Letters can be emailed to [email protected]. Include Auction Community your full name, address and phone number. We Blah Blah What does Habitat for Humanity, the Greater Carolinas Chapter of the may be unable to publish some submissions and may edit submissions for length 15 American Red Cross, BC Children’s Hospital and St. Jude Children’s Research and clarity. This is a great Hospital all have in common? Gifts of support in time and money from generous opportunity to hear back from auction volunteers and fundraisers! our readers on what you think about the articles and what topics you would like to see covered in future issues. Foundation Center Visit us on Facebook & LinkedIn A tip of the mortarboard to the dozen outstanding students selected for the Warren 16 Young, Sr., Scholastic Foundation scholarships for the 2019-2020 academic year.

3 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com PRESIDENT’S MESSAGE A Championship Season

Time sure flies when you’re having fun! I’ve enjoyed serving you as National Auto Auction paign. At NIADA’s conference, I was privileged Association president so much that I need an instant replay just to recall all that we’ve to serve as the moderator of a lively panel done this year. discussion on “Bricks, Mortar & Beyond: The 21st Century Independent Auction.” Our biggest feat in 2019 takes place next month as we return to tradition and host our own annual meeting. You asked, and we delivered. Our 71st Convention will be a great Also this year saw the launch of NAAA’s newest time to share, listen, learn, network and grow as we come together in Indianapolis to online service, AutoAuctionJobs.com, to help conduct the important work of NAAA. job seekers connect with member that have jobs to fill. I pledged as your president I’d always be interested in listening to what’s on your mind. I’ve worked to keep that promise by maintaining lines of communication, whether While we’ve had many wins in 2019, the through auction visits, phone calls, conferences and even my regular dispatches from NAAA team suffered a couple of major losses, “Chad’s Corner.” with the passing of two dedicated association Chad Bailey President members, Past Presidents Jim DesRochers and CAR was epic, from the special breakfast that raised more than $15,000 for NAAA’s political Dave Angelicchio. They are greatly missed. action committee to meeting two real, inspiring — and humble — American heroes, former Green Beret Mark Nutsch and officer Ron Johnson. It was an honor to have There’s so much more left on the replay reel that I could go on and on, but I need to return to them speak at our NAAA events. the live commentary to say a sincere, heartfelt “Thank You” to all of you — from my fellow executive officers and NAAA staff to those members who volunteer and participate in the We also hosted some other productive meetings this year, including the Safety Summit in association — for making this a championship season! It has been a real honor to serve as , an Auction Standards Summit, and two days in Washington, D.C., meeting with the coach of Team NAAA. congressional leaders and their staffs during our annual Day On The Hill advocacy cam-

4 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com 5 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com ARBITRATION CORNER

possible point in the process. Both prevention (design and process) and detection (self and audits) were included for you purists out The Best Arb is there. Having conducted By Matt Arias a healthy root-cause America‘s Auto Auction Assistant Vice President of their history from of Operations arbitration causes to dis- closures, we managed to help the seller best understand how to reach their goals while minimizing their arbitration risk. NO ARB! Why is this as an “auction operator” important? Helping I know, I know… that’s easy to say. So at this year’s CAR gaps of where they are versus where they want to be can others help themselves affects the auction. As an Conference, I presented some prescriptive advice on how happen. You probably already can guess our findings… intermediary, we have an obligation to help sustain and/ to mitigate costly arbitration claims. Turns out it wasn’t A seller must sustain or improve the brand and squeeze or improve the transparency of the auction transaction. the anticipated “snooze-fest” I thought it would be and it every dollar they can from the vehicle using ethical Less policing of sellers and their subsequent arbitration generated a ton of healthy feedback. As always, I like to disclosures along with realistic pricing. A buyer wants claims is a good thing! Buyers can trust the seller, so share our feedback for the greater good; here’s a summary to source inventory cost effectively. For both, little or no your auction spends less time in arbitration and more of those comments. arbitration risk. time managing the business! During the conference I referenced the importance of As a seller, from the starting point to the end, we asked If you can mitigate or eliminate controllable arbitration Value-Stream Mapping. This is an essential tool that four basic questions: claims every week by (insert your number here), it will enables the team to see their entire process flow. Some in 1. What type of process is this? save you (insert your dollar amount and time spent the audience exclaimed, “It’s everything we do!” It helps 2. What is being done in this step? here) a decent amount. If you can improve on that from better understand the areas that are value-added versus 3. Where does the process go from here? week to week, then that month will look way better. not. It ties all departments and the organization together. 4. Are there multiple paths of arrival and/or Breaking processes down is easy. It’s a procedure of iden- Multiple departments are involved with managing dis- departure from task to task? tifying, classifying, sequencing and visually depicting the putes at auctions. Sync or Sink! Dig into those reasons duties by department and/or operator necessary to create We made a process map. We did the usual combining why a claim is triggered (both valid and invalid) and zap a value-added step. when we could as well as splitting things up. those gaps!

Recently, a large family of dealerships asked to have an We stressed “Quality at the Source,” which is a good For more information and training, please visit “outside” review of their activities as both a seller and philosophy that basically places the responsibility for www.NAAA.com or register to take the NAAA Auction as a buyer at the auto auctions they frequent. Having meeting internal and/or external “guests” (thanks Kelly Standards Training classes regularly offered throughout established goals with them, the root causes for the Sampson for the term) requirements at the earliest the year.

6 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com SAFETY FIRST Want an ROI on Your Safety Training? Hold Staffing Services to Same Standards

A return on investment is always expected and tracked services have not been held to a high standard in respect service accountable for as investors expend resources to buy stock, real estate, or to the quality of drivers who’ve been provided to the providing qualified, commodities. Given the emphasis on safety in the auto auctions and the loss experience reflects it. Throw in a trained drivers. By Mike Rohdy auction industry since 2015, when the National Auto contract that requires the auction to hold harmless and Arthur J. Gallagher & Co. Area We’ve witnessed auc- President - Auto Auction Services Auction Association adopted the Safe T. Sam training pro- indemnify the staffing service for any claims arising out tions dig deeper into gram developed by KAR, it would seem that, collectively, of the temporary employee’s negligent operation of a several metropolitan markets and they’ve discovered there should be a ROI to the industry. vehicle, and it becomes a bit of a “head scratcher” as to that when there is competition among staffing service the perceived advantage of using a staffing service. The story has unfolded in ways that are a bit incongru- providers, the contractual concessions become much ous as we look across the spectrum of the auto auction While staffing service drivers alleviate the need to hire more attainable, which should be a primary focus of any industry. While many auctions have adopted Safe T. Sam and maintain part-time drivers who have long been auction that uses a staffing service. and evolved from making safety a priority to instilling it tough to maintain by the auction, under-qualified and As the markets show signs of hardening, par- as a true company value, others took a bit longer to get ill-trained temps cause many more problems than ticularly in commercial auto and garage coverage, it will on board the safety platform. At this point, few are lagging they solve. benefit those auctions conducting robust safety training behind; in fact, some of the latest to join are bringing the Be aware that OSHA requires employers to train tempo- programs and negotiating favorable contracts with staff- freshest, most innovative ideas to the table in imple- rary employees to the same level as regular employees. ing services to highlight these measures and initiatives to menting the instructional program and fine tuning the Claims involving staffing service drivers become difficult their respective and prospective insurance carriers. Your processes that take out some of the initial inefficiencies to defend on the auction’s behalf when they’re not insurance professional should be leading the charge to of safety certification onboarding and renewal. trained prior to operating a vehicle whether on or off inform the insurance marketplace of all the steps you’ve That’s the good news. premises. The remedy to the situation is for the auction taken to become a best-in-class risk. to use and train its own employees or secure more favor- The issue that muddies the water in regard to improved With the industry continuing to focus on safety able terms with the staffing service. claims experience and safety results is the lack of training awareness and accident prevention in the auction of staffing service employees and the onerous underly- NAAA’s free, online Safe T. Sam program provides a workplace, shoring up weaknesses in the current ing contracts that leave the auction on the hook when mechanism to train the sale-day-only driver, which staffing service relationship will propel more favorable under-qualified and poorly trained staffing service should always be done prior to putting a temp behind claims experience. Reaping a return on investment employees cause an accident. the wheel. Performing audits on staffing service-supplied is not a spectator sport when it comes to safety, risk drivers to verify their driving record and Safe T. Sam management, and insurance. Last year was a rough one for pedestrian claims and certified status should be a standard practice to hold the staffing service drivers at the auctions. Frankly, staffing

7www.naaa.com | NAAA ON THE BLOCK | SEPTEMBER 2019 SEPTEMBER 2019 | NAAA ON THEwww.naaa.com BLOCK | 7 TECH SUPPORT Everything You Wanted to Know About Contracting IT Support . If you’re like most businesses, your IT systems have . morphed through time from something just for the . bookkeepers to use into a hydra with cyber tentacles By Jeff Rollins enveloping every part of the company. President, Rollins Data Systems Tech support needs that were adequately addressed in the But Were past by your accountants and your niece, nephew or the neighbor’s kid, have become overwhelming, demanding more robust structure and technical sophistication. So, how do you determine what kind of human resource Unsure to you need, how do you find them, and what kind of credentials, experience and security should you expect of them? First, let’s talk about what resources are available in most markets. Many small-to-medium businesses work with a Managed Service Provider or MSP. An MSP can range ASK from “body shops” that provide various levels of skilled resources on an hourly basis, which you’re expected to manage, to turnkey organizations that will manage your entire infrastructure, systems, software and personnel. Some will even include in their fee structure technology upgrades for your hardware and software. If your operation is large enough, you may have already created your own, in-house group to manage your crit- ical infrastructure and systems. For the purposes of this the appropriate documents and selection criteria for Your IT systems are the repository for much of the article I’m going to talk about those who either haven’t choosing the right provider at the right cost and terms for institutional knowledge of your business; an investment done this or have realized it’s not something they can your business. They should also help you find a provider in the right team to support and grow them could be one administer and want to turn it over to an outside “expert.” in your market to approach for the job. They can often of the most critical investments you’ll ever make. manage the selection and procurement process for you First, how do you determine what level of support you Jeff Rollins, founder and principal of Rollins Data Systems, has as well. need? The single biggest factor is your own in-house more than 40 years experience in domestic and international technical competence. Do you know exactly what your But what does this helpful consultant look like? IT systems design, implementation and support. Located in the needs are, but just can’t find the MSP on your own, Washington, D.C. Metro area, RDS provides consulting and You’ll want someone who has experience with all facets implementation services for all facets of IT, from assessment or just need them temporarily? Then the “body shop” of IT: Networking, Hardware, Operating Systems, Da- of current staff, networks or systems, to guidance in system approach is right for you. They’ll either have on staff or design, implementation and development. tabases, etc. They also should be business savvy, ideally ready access to experts in most subject areas and can someone who has worked with IT systems and can bring provide them on an hourly, weekly or monthly basis. operational and process improvement experience to Some will even let you directly hire that person after a the table. 3- or 6-month contract period if you desire. IN MEMORY They of course need to understand your systems, but they Don’t know what you need (and most people don’t)? also must understand how they interact with and support Then you’ll want to use a phased approach. First, you’ll your business processes. A background in Six Sigma need to hire a consultant to analyze your current and (Process Improvement) would certainly be a plus. They future needs, then determine what the best method is should also carry adequate errors and omissions insur- to address them. (This is something we at RDS do on a ance as you are putting your future in their hands. regular basis for clients). This should be a collaborative process where you and key members of your staff work And just how do you find this paragon of computer with the consultant because they’ll need to not only un- technology? derstand what you’ve got right now, but where it’s falling A good source for a recommendation will frequently be down in meeting your current needs. your accountants; they will often have experience with In parallel with that effort, the consultant will help you firms in your area and can help guide you to one they articulate where you as a business want to go and what have confidence in who may well have knowledge of your future system needs will be to achieve that goal. your industry. Another good source would be your state Dave Angelicchio or local community college; they usually have a depart- Out of this process should come a clear set of require- July 25, 1951 – July 7, 2019 ment head for Computer Science who will either provide ments to be met now and over the planning horizon. consulting services themselves or can refer you 2010 NAAA President The consultant then would assist you in developing to someone in your community who can. 2017 NAAA Hall of Fame Recipient

8 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com CONVENTION HIGHLIGHTS 2019 More Sessions ‘U Gotta Believe’ to Motivate and Educate to In addition to Keynote Speaker Deion Achieve! Sanders and nationally recognized Sports legend Deion Sanders will share his formula for professional and Business Consultant Gene Marks, personal success as NAAA’s 2019 Convention Keynote Speaker NAAA’s 2019 Annual Convention offers these exciting breakout sessions: During his college days Deion Sanders conceived a play14 NFL seasons with the Falcons, San Francisco saying that helped him have the confidence to be an 49ers, Dallas Cowboys, Washington Redskins and outstanding athlete in football, baseball and track. Baltimore Ravens. He was named to nine Pro Bowls and “General Session” Following his motto of “U Gotta Believe!” to achieve took became a two-time Super Bowl champion, first with the Sponsored by ADESA him to professional heights in a brilliant sports career 49ers in 1995 and then the Cowboys in 1996. and brought him through some personal lows in darker Wednesday, Oct. 2, 9:30-10:30 a.m. Sanders has the distinction of being the only person in private times. professional sports history to play in the Super Bowl and Sanders will share that inspirational message of belief the World Series by also having a baseball career with the “Awareness in the Workplace” from his experiences as a two-time Super Bowl Champion, New York Yankees, Atlanta Braves, Cincinnati Reds and Sponsored by Manheim World Series ballplayer, television sports analyst and San Francisco Giants. divorced single parent with members of the National Wednesday, Oct. 2, 10:30-11:15 a.m. Popularly known to the media and his fans by his nick- Auto Auction Association attending its 71st Annual names “Prime Time” and “Neon Deion,” he was inducted Convention. into the Pro Football Hall of Fame in 2011. “Dealers’ Future from the Top” The sports legend will deliver his motivational keynote But professional fame and fortune did not always bring Sponsored by speech during the luncheon on Wednesday, Oct. 2, at the personal happiness as Sanders details his struggles with The Independent Auction Group JW Marriott in Indianapolis, Indiana. divorce, emptiness, and a failed suicide attempt that lead Born on August 9, 1967, in Fort Myers, Florida, Sanders him to a renewed faith-based lifestyle in his bestselling Thursday, Oct. 3, 2:00-3:30 p.m. began competing in organized baseball and football at autobiography “Power, Money & Sex: How Success the age of eight. As a student at North Fort Myers High Almost Ruined My Life.” School he was all state in football, baseball, and basket- Following the conclusion of his athletic career, Sanders ball. Although selected in the sixth round of the 1985 serves as a television analyst for CBS Sports and the MLB draft by the Kansas City Royals after graduating, NFL Network, appearing on “NFL GameDay,” as well as Luncheon Sanders enrolled in Florida State University instead. “Thursday Night Football” and “21st and Prime.” Wed., October 2 During his college career Sanders focused on two sports, A man of faith and a philanthropist, Sanders now dedi- 11:30-2:00 p.m. leading the Seminoles baseball club to the College World cates his life to helping children. He established the TRUTH Series and its football team to the Sugar Bowl. Yet he Youth Academic & Sports nonprofit organization that Keynote also found time to run track, helping the team win a gets kids off the streets and into sports, and holds a conference championship. He finished college as a two- Speaker summer football camp. With Stand Together, Sanders time All American in football and as a recipient of a 1988 has launched Prime 5, a $21 million fundraising Jim Thorpe award. Deion initiative to support for-purpose organizations that His professional sports career began when he was the can empower Dallas residents to transform their Sanders fifth draft of the Atlanta Falcons in 1989, going on to lives and find a path out of poverty.

9 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com CONVENTION HIGHLIGHTS 2019 The Man to Help You Plan Nationally recognized business consultant Gene Marks discusses “Trends Beyond 2020” at NAAA’s 2019 Annual Convention Named “one of America’s best places to go and eat in 2019” by Food & Wine Magazine and “The Most Underrated Food City in America” by Conde Nast Traveler, Indianapolis offers a feast for foodies attending NAAA’s 2019 Annual Convention.

But with more than 300 diverse restaurants — from an old-school steakhouse, authentic German biergarten or kosher deli to a brightly colored brunch spot, outdoor dining on the reservoir or upscale farm-to-table dairy bar — it’s hard to know where to start!

To help you with your dining decisions during the convention, Visit Indy, the official host of Indianapolis, lists the following eateries vot- ed by residents as the Top 25 locally owned restaurants that best represents their city:

• St. Elmo Steak House • Bru Burger Bar • Shapiro’s Delicatessen • Café Patachou • Bazbeaux Pizza Thursday, October 3, 9:45 am – 10:30 am • Jockamo Upper Crust Pizza • Yats What is the one thing the most successful business own- of top business leaders are carrying out to grow their • Mama Carolla’s Old Italian Restaurant ers, executives, managers and leaders have in common? companies. Using the most current events and up-to-date • Harry & Izzy’s information, he’ll share the latest political, economic and They’re always looking ahead. • Bluebeard technology trends that will impact auto auctions next While executing their plans for the current year, they’re year and in the near future — plus actionable takeaways • Livery already thinking of the years to come, asking a variety of for meeting those challenges of tomorrow. • Goose the Market questions: How will I navigate my company through po- Marks has authored six books on business management, • Milktooth tential economic downturns? What impact will the next writes for Forbes, Inc. and Entrepreneur magazines, The national election have on my company and industry? • The Rathskeller Philadelphia Inquirer, The Hill, and The Guardian, and What investments should I be making? What technolo- • Union 50 is a regular guest on MSNBC, CNBC, Fox News, and Sir- gies should I be considering? iuXM Radio. He is a former longtime columnist for both • Rick’s Café Boatyard As a business leader, you know it’s your job to be pre- The Washington Post and . • Caplingers Fresh Catch pared, not just for the sake of the company’s prosperity, After graduating from Lehigh University’s College of • Iaria’s Italian Restaurant but also for all those relying on you for their livelihoods. Business with a degree in economics and studying at • The Tamale Place Your employees, partners, customers, suppliers — and University College London, Marks became a certified their families — count on your leadership to ensure your • Good Morning Mama’s Café public accountant. He spent nine years in senior man- business will continue to thrive and grow regardless of • Napolese Pizzeria agement with the entrepreneurial services arm of the whatever challenges the future holds. international consulting firm KPMG prior to launching • Tinker Street Restaurant & Wine Bar To help you with that daunting responsibility, NAAA’s his own business in 1994. • Mesh on Mass 2019 Annual Convention offers an all-chapter members’ Today, The Marks Group, PC, is a 10-person company • Mimi Blue Meatballs presentation on “Trends Beyond 2020” by nationally specializing in customer relations management that pro- recognized consultant, columnist, author, and small • Traders Point Creamery vides technology and consulting services to small- and business owner Gene Marks. medium-sized businesses. You can find more information about each In his fast-paced, funny and energetic style, Marks will restaurant at VisitIndy.com. reveal the tactics, strategies and ideas that hundreds

10 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com AUCTION NEWS

MORE THAN A CHAIN-LINK Independent auctions focus on digital as well as physical security to safeguard FENCE their customers’ trust

With thousands of vehicles and millions of dollars being All these tools, tremendous effort and resources to institute procedures exchanged by buyers and sellers every day at auto auc- which are an in- far beyond meeting federal government requirements, tions in the United States, security is a crucial component tegral part of the infrastructure of the facility, contribute which has resulted in the development of a strong and of the remarketing process, whether vehicles are bought to the auction’s physical security, but an even more key pervasive culture of compliance,” Weaver says. “Our and sold on a digital platform, or in the auction lane. piece to creating a secure environment is safeguarding commitment to security includes processes that secure the financial transaction each time a vehicle is bought not just the physical asset, but protect the financial “Certainly, the physical security of the vehicles being and sold. transaction and safeguard the information that flows bought and sold is the first step in instilling customer from it as well.” confidence,” says Chad Bailey, president of the National “Sellers entrust our auctions with their assets and owner- Auto Auction Association and third-generation owner of ship documents, assured that they will be paid promptly, Independent auctions are well capitalized and operate Akron Auto Auction. “The auction’s brick-and-mortar, while buyers rely on us to transact their purchases using their own financial resources, and it shows in the physical facility is an important element in providing smoothly, delivering the vehicles as they were represent- way they do business, notes Jeff Barber, president of State that security.” ed, with the right equipment, in the same condition, and Line Auto Auction in Waverly, New York. with a good, negotiable title,” says Lynn Weaver, execu- Bailey explains that unlike other market transactions tive director of the Independent Auction Group, which is — stocks or pork belly futures for example — the auto- “There’s a lot of value into being able to walk into an comprised of 194 physical auctions across the country. motive trade is a physical one. At issue is a 3,000-pound auction in the morning with a check and leave with a car piece of metal that occupies a 10- by-20-foot parking He explains that independent auctions are able to and title, or to drive a car to the auction and leave with space, which must be secured and inventoried. In the assume this major fiduciary responsibility by engaging a check that day,” he says, adding much of that is also early years of the industry, security was as simple as a trusted industry partners such as AutoTec, Auction owed to fostering a long-term personal relationship with chain-link fence around a lot. But today the methods of Insurance Agency, AutoCheck, and Auction Access, which the customers. providing security for the vehicles at auction are as high- employ successful and time-tested procedures that tech as it is comprehensive. protect titles and guarantee checks. “Most independent auctions have been bringing buyers and sellers together for a long time, and they’ve earned “Property and fencing are just the first steps, along with In today’s digital world, protecting information has the trust of their customers, which has been built over digital tools to protect the vehicles on the lot,” Bailey become increasingly important, Weaver observes. Main- many years — even generations — of treating them notes. “Added to that are sophisticated inventory control taining the confidentiality, integrity and availability of like friends or family,” says Barber, a second-generation systems that facilitate the check-in/check-out of every the information that is part of the financial transaction, auction owner himself. “You’re doing business with asset and track the locations of vehicles. Yet another layer as well as the significant data carried by the vehicles a company with decades of experience, working with are the cameras that transmit images of the vehicles as themselves, is an equally critical responsibility. experts in the business whose family names back their they cross the block, allow online buyers to view the ve- “IAG auctions have a long history with countless finan- operations, and have earned a place of trust and respect hicle, record the auction process, and facilitate the review cial institutions all over the country, and have focused in the industry.” of auctioneers’ and clerks’ handling of bids.”

ADESA Enhances Its Website With New Industry-Leading ‘Natural Language’ Search Function

ADESA has introduced a new “natural language” search industry, said ADESA Chief Information Officer an entry. Plus, it learns from itself, quickly adapting to functionality on its ADESA.com website that makes finding Rick Griskie. help buyers more effectively with repeated use and giving vehicles dramatically faster, easier and more robust. The customers more of what they want and less of what they “The most crucial activity for dealers sourcing inventory new search capability can return up to 400,000 vehicles in don’t want.” is vehicle search, so we poured our energy into creating less than two seconds — six times faster than before. an industry-leading natural language search function Paired with ADESA.com’s advanced filter options and Mirroring the search engines used by the world’s leading that utilizes Elasticsearch,” Griskie, explained. “Our canonical database, the search enhancement substantial- technology and e-commerce companies, the natural lan- search now rivals anything you’d find in the online ly reduces the time spent looking for the right vehicles, guage function is a first for the automotive remarketing shopping space. It works even when customers misspell improving productivity and thus profitability for dealers regardless of their size or sales volume.

11 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com AUCTION NEWS Manheim Launches Its First All-Digital Auction

To drive greater efficiencies for clients while creating a saf- er auction experience, Manheim debuted its first all-digital auction with a ribbon-cutting ceremony in May at its Manheim Tucson location. The new four-lane format is a live auction where rather than driving vehicles through the lanes, they remain parked and are offered for sale by an auctioneer via oversized monitors featuring enhanced images, barcode price scanning capability and condition report information. This innovative auction experience provides a digitally advanced, comfortable setting where buyers and sellers can bid in person or online using Manheim Simulcast. The inaugural sale included more than 300 online and in-lane bidders and achieved an approximate 76 percent sales conversion rate. “Bringing the excitement of the auction to clients in a live, all-digital format is a key move in our broader digital strategy,” said Manheim President Grace Huang. “With advanced vehicle information and imaging, we’re able to deliver digital solutions that create greater confidence Manheim Tucson becomes the company’s first 100-percent digital site where vehicles remain parked and are and efficiencies while offering a safer auction experience offered for sale by an auctioneer via oversized monitors featuring enhanced images, barcode price scanning for everyone.” capability and condition report information. Manheim’s first all-digital auction is a natural evolution of its digital strategy. While Manheim Tucson is the first price points by creating a digital experience as close as The location’s all-digital launch supports Manheim’s goal site to implement this new technology for an all-digital possible to a physical sale. to offer clients greater choice, tools and convenience when auction, Manheim has been adopting digital lanes at sites doing business in the Manheim Marketplace. “I see the benefits and efficiency of digital lanes — no across the U.S. with more than 100 already in place. emissions in the lanes, and the increased safety that comes “Our team was so excited to be part of creating a new Manheim Tucson predominantly handles dealer vehicles with moving to a digital auction help prevent accidents chapter in our company’s history,” said John Duplanty, under $5,000, which can be challenging to sell through from happening in physical lanes,” said Vinnie Da Cruz of general manager, Manheim Tucson. “Our main priority digital channels such as Manheim Simulcast. Manheim Simply Sell it Now, located in Tempe. “In an industry such was to work closely with our clients, preparing them for Tucson was chosen to prove that an all-digital auction as the reselling of automobiles, to not accept technological the change and helping them realize higher conversion could appeal to all types of buyers and work for all vehicle growth is almost certain death.” and retention performance. This has been a big win for our buyers and sellers.”

Preferred Warranties Inc. Has New Vice President of Sales

Allison Marley has been named vice president of sales at Preferred Marley has more than 15 years of experience in the automotive Warranties Inc. (PWI), a business unit of KAR Auction Services Inc. industry. Most recently, as senior director of performance man- In this role, Marley will lead the PWI sales and training team, interact agement at NextGear Capital, she pivoted the company’s business with key customers and partners, and activate the national sales methodology from a transactional sales process to a consultative structure through her team of six regional sales managers. sales approach. Her background also includes marketing, opera- tions, sales, and financial management positions for automotive “Allison is a dynamic and strategic leader who will accelerate and powerhouses such as Ford, GM, Toyota and Mercedes-Benz. revolutionize PWI’s sales strategy,” said PWI President Edmund Field. “She has the vision to create and execute momentum in existing Established in 1992, PWI offers extended service contracts and markets and launch strategy for new market expansion. By develop- extensive coverage levels to more than 3,000 independent automo- ing and empowering the sales team, she will drive revenue, increase tive dealers. To supplement these product offerings, PWI provides market share and achieve company growth metrics.” best-in-class service and training to assist dealers selling those products, which in turn creates value and enhanced satisfaction for their customers. Allison Marley

An Industry Hiring Resource .com

12 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com AUCTION NEWS New Executive Leadership at ServNet Upgrades to satellite feed and then through Online Manheim Express Ringman. ServNet auction owners were instrumental in the develop- Help Dealers Buy and Sell ment of Auction Pipeline, which was launched in 2006 and has since Inventory Faster become an industry standard. “This is a tremendous time for John and me to join again with ServNet and to be part of its forward momentum,” said Sullivan. “As we focus on driving ServNet’s operating capabilities and growth, we are equally inspired by the John Brasher Bob Sullivan opportunities for ServNet to embrace the new tools and methods that are One of the latest enhancements to Manheim Express Industry veterans John Brasher and Robert Sullivan have taking the auction experience to new levels: mobile is the growing Concierge force to provide personal been appointed to head ServNet’s executive team. They technology, the virtual marketplace, digital channels, assistance to more dealers in listing their vehicles for will assume leadership of the auction group on Jan. 1, 360-degree imaging and data analytics. We look forward sale through digital channels 2020. Brasher has been named executive director, while to a new chapter and an exciting future.” Sullivan will serve as administrative director. ServNet President-elect Bruce Beam, who will take the With dealers increasingly turning to digital channels to “We are delighted to welcome two individuals of such reigns as president in October, explained the appointments buy and sell vehicles on their time and terms, Manheim caliber and standing in the auction industry to ServNet’s follow ServNet’s decision to move to an executive director continues to scale support for its Manheim Express mobile executive team,” said ServNet President Eric Autenrieth. system after Pierre Pons announced he would step down app to help make it even easier for dealers to tap into “Both John and Bob have years of experience in the at the end of 2019 as the group’s chief executive officer, a its wholesale used vehicle marketplace. Based on dealer industry and are champions of the independent auction. post he has held since 2007. His firm, TPC Management, feedback and increased demand, Manheim has made Both former owners of ServNet auctions themselves, has concurrently provided administrative management three enhancements to the Express mobile app. they bring unique and valuable perspectives to their new services to the ServNet group of auctions. leadership positions.” “We launched the Manheim Express app because we “We have great admiration for Pierre and the TPC team, heard our dealer clients wanted access to the Manheim As owner of the Brasher family of auctions before their and are grateful for his dedication to our group,” said Marketplace in the palm of their hand,” said Derek Han- acquisition by ADESA in 2016, Brasher had been actively Beam. “He has worked tirelessly to fortify ServNet as an sen, vice president of Offsite Solutions at Manheim. “The involved in many of the initiatives sponsored by ServNet. organization and to strengthen ServNet’s position in response from dealers has been phenomenal, and we’re Two Brasher auctions were founding members of ServNet the industry.” continuing to bring new features and services that help in 1988. Having been the steward of the ServNet brand for the past make it even easier for them to buy and sell when and Sullivan was managing partner of Chattanooga Auto Auc- 12 years, Pons said he was pleased to pass the torch to two where makes the most sense for them.” tion, which was an early member of ServNet as well. He veteran former ServNet auction operators. “I really believe The first upgrade involves Manheim Express Concierge served a two-year term as ServNet’s president from 2004 that no one can represent the organization better than Service. Launched nationwide in February, Concierge Ser- to 2006, and has worked as a consultant for a number of someone who has owned and operated a ServNet auction vice provides dealers with a dedicated expert to help them ServNet auctions in recent years. location,” he said. “John’s and Bob’s industry credentials sell vehicles more efficiently in the wholesale marketplace. are unparalleled and I know they will continue to build “We believe in the independent auction, and have the Just a few months after launching across the country, the and strengthen ServNet in this quickly changing industry. highest regard for the leadership role that ServNet has Concierge force is growing nearly 80 percent based on Our team in Franklin, Tennessee, will be working diligent- taken in the vehicle remarketing world,” said Brasher. dealer demand for expert guidance and a hands-off way to ly to ensure a smooth transition over the coming months.” get their vehicles listed quickly. “ServNet auctions have always been among the innovators in the industry, and will continue to shape the nature of The ServNet Auction Group is a network of strategically A second update to Manheim Express is the expansion of the auction business. It’s exciting to work with Bob in our located, independently owned wholesale auto auctions. “Make an Offer” functionality. With this enhancement, new capacity as ServNet’s executive team, to encourage For more than 30 years, ServNet member auctions have dealers can select any combination of purchase options and support the rising generation of auction owners and been working together to provide a full range of remar- they want to offer potential buyers, ranging from “Bid,” to to carry forward the work to keep ServNet auctions strate- keting services to its customers, including auctioneers, “Buy-Now” or “Make an Offer.” This gives dealers more gically relevant in a rapidly evolving industry.” inspections, reconditioning, transportation assistance and flexibility in how they market their vehicles, helping to inventory financing. Brasher noted that ServNet auctions were the first in the make their listings more appealing to a larger group of potential buyers. industry to develop Simulcast auction selling, initially via Finally, Manheim’s Trade Desk team is also expanding. Created to build relationships with buyers and serve as their “personal shopper,” the Trade Desk team works to identify Don’t Forget that Safety Certification vehicles of interest for buyers and help close deals for sellers. Advanced search technologies allow Trade Desk team members to proactively reach out to buyers and match them with Manheim Online is an Annual Safety Program Express inventory that is likely to appeal to them.

13 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com AUCTION NEWS PAR North America Selects Drew Shull as Sales Team Leader

Drew Shull has been named vice president of sales and client expe- and product offerings, while leading the sales team. Shull and the rience for PAR North America. PAR, a business unit of KAR Auction sales team are responsible for implementing client retention initia- Services Inc., is a leading U.S. provider of vehicle transition services tives, driving results and expanding PAR’s product portfolio. with coast-to-coast solutions for recovery management, skip tracing, Prior to joining PAR, Shull served as regional manager at AFC, a remarketing and title services. This appointment aims to help create KAR business unit, where he led the 12-branch Midwest region with new client relationships and foster PAR’s existing customer base. an automotive floorplan portfolio of $200 million. While at AFC, he “At PAR, we’re working to transform the asset recovery industry and coached and mentored branch managers on sales strategies, relation- grow our footprint,” said Lisa Scott, PAR North America president. ship building and integration of new products from the KAR Auction “With 19 years of sales experience, Drew’s proven track record of Services portfolio of brands. He also led the Mobility Branch, an providing internal and external partners with value is just what PAR international business opportunity for rental cars, fleet cars, rideshare needs at this time in our industry. His passion and drive will help and subscription programs. He also worked in various sales and take PAR’s product and services to the next level.” financial positions before becoming part of the KAR family. Shull will be based in central Indiana and will report directly to Scott. Drew Shull In his new role, he will focus on enhancing PAR’s client experience

Tony Markese Named Vice President of Manheim Reconditioning

Manheim has appointed Tony Markese vice president, Recondi- In his new role, Markese is tasked with ensuring the company attracts tioning, where he will be responsible for setting the company’s and retains top automotive technicians across its nationwide network strategic direction for its reconditioning services. This move supports — a major challenge as the industry faces a projected shortage of Manheim’s goal of growing its quality reconditioning operations to qualified technicians. But with the company’s partnership with the prepare for emerging growth in the digital and mobility sectors. TechForce Foundation, as well as a forthcoming apprentice program for new and aspiring technicians, Markese is confident in Manheim’s “Reconditioning is a significant part of our business and is growing future technician workforce. fast as the mobility landscape shifts and new entrants come onto the scene,” said Fredrick Standfield, senior vice president, Assurance and “We know what bright futures automotive technicians can have, Reconditioning, at Manheim. “With the fast-paced transformation of especially at a company like Manheim, which offers training, support the automotive marketplace, Tony’s exceptional ability to manage and opportunities for career growth,” Markese commented. “Between change and help his teams and clients envision the big picture make our internal programs and external partnerships, we’re doing every- him the ideal person to lead this growing area of our business.” thing we can to promote this important career path and highlight the role it will play in the future of mobility.” Markese brings deep operations experience and industry knowledge Tony Markese to the position. He joined the company in 1998 as controller at Man- Manheim continually invests in its reconditioning shops, people, Markese’s new role is designed heim Orlando and went on to serve as general manager at several processes and technology to meet growing industry demand. In to strengthen operations and Manheim operating locations in Florida. Promoted to vice president, reconditioning processes to meet addition to reconditioning services that support the vehicles within Operational Excellence, in 2012, he helped lead large, transforma- growth in the emerging fleet and the Manheim marketplace, over half of Manheim’s physical locations tional projects, including the $400 million initiative to modernize mobility sectors. now offer reconditioning services that help dealers get their vehicles Manheim’s operating locations. in front-line condition, enabling the company to produce over 100,000 retail-ready vehicles since 2015.

Congratulations 2019 NAAA Chapter Auto Auction of the Year Winners

ADESA Boston Columbus Fair Louisana’s 1st DAA Northwest Auto Auction Choice Auto Auction

14 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com AUCTION COMMUNITY KAR Holds a Habitat for Humanity Panel Build

Hundreds of KAR Auction Services employees helped a deserving homeowner turn sorted piles of wood into the frame of her new home through a Habitat for Humanity few hours with many able hands,” said Becky Doemland, “panel build” in the parking lot of the company’s Carmel, director of community relations and corporate social Indiana, headquarters. responsibility communications for KAR.

The panels were then moved to the home’s site in the Near Habitat for Humanity provided skilled and knowledgeable Northside neighborhood of Indianapolis, where the home staff — including their “Tiger Team” of experienced will be built in just a few months. volunteers — to give direction throughout the project. Volunteers from KAR served as set-up crew, check-in staff, “It was amazing how much work we were able to do in a nail captains, nail-station teams and teardown crew. Manheim Statesville and Remarketing by Element Partner to Provide an Emergency Vehicle to the American Red Cross

For the second year in a row, Manheim Statesville’s to the winning location’s Red Cross chapter. Over the past Cross to give out to children at local shelters during times exceptional efforts in the annual “Race to Give” charity three years, Manheim’s collective fundraising efforts have of natural disaster and when they respond to home fires. program resulted in the donation of an emergency generated more than $350,000 and the donations of five “Our 450 team members feel it’s important to extend response vehicle to the Greater Carolinas chapter of the Red Cross fleet vehicles. Manheim’s corporate partnership with the American American Red Cross. The 2019 Chevrolet Malibu donated “Compassionate community partners like Manheim Red Cross to the local level by helping individuals and by Remarketing by Element further expands the organi- are essential to helping us meet our mission to alleviate families in our own backyard,” said Manheim Statesville zation’s emergency response fleet used to deliver supplies human suffering in the face of emergencies,” said Angela General Manager Ellie Johnson. “These vehicle donations, and services to disaster victims in the two-state region. Broome Powley, chief executive officer for the American along with the other activities that support our Red Cross Since 2016, Manheim and Remarketing by Element Red Cross Greater Carolinas Region. “Their support allows chapter, demonstrate the deep commitment we have to the have partnered in the national charity campaign where us to mobilize volunteers and provide hot meals and community where we live and work.” Manheim locations across the country organize creative shelter when there is nowhere else to turn.” Paul Seger, Element Fleet Management’s vice president of fundraising activities in a friendly competition that culmi- Manheim Statesville emerged as the top auction location asset marketing, added, “We often think of the American nates with a vehicle donation by Remarketing by Element this year by raising $40,500 in addition to organizing Red Cross as a national organization, but their hyper-local blood drives, collecting hurricane relief supplies, installing response helps individuals and families in communities ev- smoke alarms, and stuffing 150 teddy bears for the Red ery day. We’re humbled to support the services they provide to people facing dark moments due to disaster.”

Manheim Statesville’s exceptional efforts in the annual “Race to Give” charity program resulted in the donation of an emergency response vehicle to their local chapter of the American Red Cross.

15 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com AUCTION COMMUNITY FOUNDATION CENTER

Managers of ADESA Vancouver Present Donation to BC Children’s Hospital During Live Telethon Congratulations 2019 Scholarship Recipients

America’s Auto Auction Scholarship Student: Keith W. Dabroski State Line Auto Auction

Black Book Scholarship Student: Jacob D. Robertson State Line Auto Auction

Ruth Hart-Stephens Memorial Scholarship Student: Anne W. Dabroski State Line Auto Auction

Midwest Chapter Scholarship Student: Kimberly E. Paquette ADESA Flint

Indiana Auto Auction Scholarship Student: Mary Grace Bookmyer Indiana Auto Auction

Ken Osborn Auction Education Scholarship ADESA Vancouver General Manager John MacDonald (center) and General Sales Manager Marc Bergevin Student: Alec S. Anderson (right), with Chloe and Jackson, present a $19,000 check to BC Children’s Hospital during their appearance on KAR Auction Insurance the Miracle Weekend live telethon broadcast. Auction Insurance Agency Scholarship Representatives of ADESA Vancouver presented a check for facilities and equipment are some of the best in the world Student: Chandler E. Greene $19,212 to BC Children’s Hospital during the 32nd annual specialized for kids and has made a great impact on Greensboro Auto Auction Miracle Weekend live telethon. The auction had collected many families in the region during difficult times and is a money for the gift during the past year by selling donated household name that resonates with many local residents. Manheim Scholarship vehicles and participating in various hospital foundation Its “Miracle Weekend” is an appreciation event for all of Student: Matthew P. Wozniak fundraising programs. the hospital’s major donors that have contributed in the Manheim last year, and everyone gets a quick spot on live TV. In As British Columbia’s only child-focused hospital, the total, $21 million was raised for the hospital. Southern Chapter Scholarship Student: Manav C. Matthews ADESA Nashville raises $14,500 for Manheim Western Chapter Scholarship St. Jude Children’s Research Hospital Student: Frederick D. Schoentheler ADESA Nashville’s third annual Cars-n-Kids Charity DAA Northwest Auction raised $14,500 for St. Jude Children’s Research Hospital with a two-day event. At a golf outing attended Carolina Auto Auction Scholarship by about 150 dealers, participants enjoyed lunch and a Student: Mazarine Penzin round of golf at the Hermitage Golf Course, followed by Auctions In Motion - Thousand Oaks dinner, awards and a . All proceeds went to the hospital. During the next day’s charity sale, more XLerate Group Scholarship than 1,000 units crossed the block — a record for ADESA Student: Hailey J. Smedley Nashville. Dealers were also treated to a guest appearance ADESA Brasher’s from Harley-Davidson , just in time for ADESA Nashville Office Manager Jeff Cale (right) presents the check to Reah Aitken, regional development summer riding. director, and Chelsea Elliott, regional development representative, from St. Jude Children’s Research Hospital.

16 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com 17 | NAAA ON THE BLOCK | SEPTEMBER 2019 www.naaa.com