Ben Flusberg, associate vice president of Manheim's new M Logic suite of products, will speak at the 2019 CAR Conference on March 26 about ways to optimize reconditioning spend.
M Logic is Manheim's suite of decisioning products that gathers Cox Automotive data to improve profitable decision making.
M Logic is comprised of three verticals: valuation, optimization, and personalization. Clients that use the full suite of optimization products can improve profits per vehicle by $150-$300, according to Manheim.
The valuation vertical consists of Manheim's Market Report, which is a widely used wholesale vehicle valuation that uses millions of vehicle transactions and OEM build data to value vehicles given their mileage, condition, exterior color, and region.
To optimize vehicle valuations, Manheim looks at VIN-specific vehicle and market attributes to set accurate auction floor prices. Later this year, Manheim expects to use AI to price more than 600,000 client vehicles across its digital and physical marketplaces.
Manheim also optimizes the distribution of vehicles from grounding dealer sites, marshaling yards, and rental airport locations to physical auctions. M Logic's location optimization balances wholesale inventory with local supply demand and directs client cars to where the appropriate buyers are.
M Logic also uses condition reports to recommend which vehicles should be reconditioned in order to improve profit.
The last vertical of M Logic, personalization, uses machine learning to help buyers find and purchase the right vehicles faster. To do this, M Logic uses data from historical bid and buy transactions to identify buyer preferences around a channel, location, and vehicle attribute given current market conditions.
In 2019, Manheim plans to incorporate Forecast MMR as well as solutions that optimize client de-fleeting and pull-ahead decision into its suite of decisioning products.