Commentary & Voices
Inventory Solutions: Three Key Areas of Opportunity for 2024
Tuesday January 16, 2024
Despite our industry’s strong start in the first half of 2023, we experienced some challenges during the second half of the year due to rising interest rates, tight vehicle supplies and a weakened economy. Much of this was beyond our control. But what we can control is putting Manheim’s diverse portfolio of physical, digital and data assets and experienced professionals to work for our clients.
To meet the opportunities that lie ahead, Manheim has evolved beyond simply an auction company. Today, we are world’s largest wholesale vehicle marketplace and part of a connected Inventory Solutions group that is delivering comprehensive vehicle services and inventory management solutions to enhance the profitability of our diverse client base.
The mission of Cox Automotive’s Inventory Solutions group is to power the buying, selling and servicing of vehicles and play a larger role in the end-to-end solutions arena by diversifying its offerings. This includes more marketplace choices for clients to conduct business in-lane or digitally; decision support tools that allow clients to make more confident buying and selling decisions; expanded vehicle services offerings such as inspections, storage and retail reconditioning; and logistic solutions that range from picking up and delivering vehicles at auctions and dealerships to expanding into the retail marketplace.
As we enter 2024, three key areas present the greatest opportunity for Inventory Solutions and our clients:
- Making the digital buying experience as good as seeing it in person.
- Providing real-time, actionable data to help clients make more informed buying and selling decisions.
- Maintaining our core services while preparing for EV growth.
Manheim sold roughly 48,000 used EVs last year, a 58% year-over-year increase. And while EV momentum in the new vehicle space cooled off late last year, we still believe preparing for EV growth in the wholesale marketplace remains vital. Since 2019, Manheim has invested more than $200 million to build an EV infrastructure that includes both facility upgrades and process improvements. Examples include installing 800 EV chargers, more than doubling our charging capacity in 2023, providing EV owners and sellers with safe storage, and training our 800-plus technicians on how to safely handle and dispose of EV batteries.
To hear more, click below to listen to my entire presentation.
