M LOGIC: Manheim’s Product Suite Empowers Clients to Make Smarter, Real-time Decisions
Tuesday March 12, 2019
- M LOGIC products use unmatched Manheim and Cox Automotive data to accelerate decision making.
- Vast data – from 10 million wholesale and 30 million retail transactions plus other related data from Cox Automotive divisions – make wholesale buying and selling more efficient.
- Artificial intelligence adds science to art, enabling clients to make more profitable decisions quickly.
ATLANTA, March 12, 2019 – M LOGIC is a suite of decisioning products from Manheim that brings the power of Manheim and Cox Automotive data and insights to wholesale clients in a valuable way. The goal is to put Cox Automotive’s data to work for clients by adding science to the art of profitable decision-making.
“The concept of helping clients make smarter, real-time decisions is something we have been doing a long time,” said Dr. Ben Flusberg, associate vice president of M LOGIC. “But now, M LOGIC combines efforts across Manheim to provide even better solutions that help our wholesale clients take action for faster transactions and greater profitability. For example, one client is achieving profit lift of tens of millions of dollars by using multiple M LOGIC products – Pricing Optimization and Location Optimization.”
Data-Enabled Solutions for Wholesale Clients
M LOGIC includes products in three verticals – valuation, optimization and personalization, each with a set of tools that enable Manheim’s clients to make more informed, data-driven decisions. This data translates into significant profit lift potential – $150-300 per vehicle – for clients that use the full suite of optimization products.
- Manheim Market Report (MMR): Widely regarded as the “gold standard” in wholesale vehicle valuations, MMR uses millions of vehicle transactions, along with OEM build data, to value vehicles given their specific mileage, condition, exterior color and region. In addition, MMR’s data-rich, visually intuitive digital interface – available across desktop, tablet and mobile devices – receives more than 75 million valuation lookups per year from tens of thousands of users. Using M LOGIC’s broad suite of data sources and analytics capabilities, Manheim is continuously refining MMR to improve its accuracy and help wholesale clients transact on the right car at the right price.
While some players are talking about artificial intelligence (AI), Manheim is actually using it today, powered by vast amounts of its own data along with data from other Cox Automotive brands.
- Pricing Optimization: By using VIN-specific vehicle and market attributes to set accurate auction floor prices, Pricing Optimization increases price retention and conversion, lifting client profits by $50-200 per vehicle. The data aggregated by M LOGIC that makes Pricing Optimization happen includes 10 million wholesale transactions, 30 million retail transactions, 48 million vehicle descriptions from manufacturer build data and information from 101 million individual vehicle options and packages. Manheim expects to use AI to price more than 600,000 client vehicles across its digital and physical marketplaces this year. The number of vehicles priced has grown by more than 100 percent each year over the past few years. Using Pricing Optimization to price this number of vehicles has the potential to achieve between $30 million and $120 million in client profit lift.
- Location Optimization: By optimizing the distribution of vehicles from grounding dealer sites, marshaling yards, and rental airport locations to physical auctions, M LOGIC’s Location Optimization increases client profit net of transportation- and depreciation-related costs. At the same time, it balances wholesale inventory with local supply-demand, directing client cars to where the right buyers are. Manheim currently partners with several clients on Location Optimization and optimizes the distribution of approximately 200,000 client vehicles annually. On average, Location Optimization helps clients gain an additional $50 in profit per vehicle.
- Recon Optimization: By recommending VIN-specific vehicle repairs to approve, Recon Optimization increases clients’ price retention and improves their return on reconditioning spend. Typical profit lift for Recon Optimization clients is $50-100 per vehicle. M LOGIC uses 32 million condition report line items across 5 million wholesale transactions to power this solution. Throughout 2018, Manheim piloted Recon Optimization with several clients, optimizing recon spend on nearly 30,000 vehicles across dozens of locations. Recon Optimization will become available to additional clients within Manheim’s Seller Dashboard in late 2019.
- Personalized vehicle recommendations: Using machine learning to match Manheim inventory to the right buyers, this solution helps dealers find and purchase the right vehicles faster and more easily. To accomplish this, M LOGIC exploits data from 10 million historical bid/buy transactions to identify dealer preferences around channel, location and vehicle attributes given current market conditions. The recommendations engine uses approximately 200,000 vehicles listed within Manheim’s marketplace on any given day against these dealer preferences, generating 2.5 million ranked buyer-vehicle matches daily. Throughout 2019, dealers will automatically start seeing their personalized vehicle recommendations when they log on to Manheim.com.
In 2019 and beyond, M LOGIC will continue to deliver clients with personalized solutions that will streamline their experience within Manheim’s marketplace. In addition, M LOGIC will incorporate Forecast MMR, along with solutions that optimize client de-fleeting and pull-ahead decisions, into its suite of decisioning products. These solutions will have broad applications, both within the traditional wholesale marketplace and also across the newer mobility and vehicle subscription service spaces.
Clients can learn more about using Recon Optimization to optimize reconditioning spend when Flusberg speaks at the Conference of Automotive Remarketing on Tuesday, March 26.
About Manheim (www.manheim.com)
Manheim® is North America’s leading provider of end-to-end wholesale solutions that help dealer and commercial clients increase profits in their used vehicle operations. Through its physical, mobile and digital sales network, Manheim offers services for inventory management, buying and selling, floor planning, logistics, assurance and reconditioning. With its omni-channel approach, Manheim Marketplace enables wholesale vehicle clients more efficient ways to connect and transact business how and when they want. Approximately 17,000 team members help Manheim offer 7 million used vehicles annually, facilitating transactions representing nearly $61 billion in value. Headquartered in Atlanta, Manheim North America is a Cox Automotive™ brand. For more information, visit http://press.manheim.com.