WWW.NIADA.COM WWW.NAAA.COM THE OFFICIAL MAGAZINE OF THE NATIONAL AUTO AUCTION 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 auctions 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 police 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 Dallas, 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.