Transportation logistics can quietly drain the dealership’s bottom line:
Or become a secret weapon.
On the first episode of Industry Spotlight, Sam D'Arc, COO of Zeigler Automotive Group, spoke to W. Denton Gupton, used car director at Jim Ellis Volvo Cars Mall of America – Volvo’s # 1 CPO dealer, and the CEO of Auto Hauler Exchange, Royce Neubauer. Together, they shared how top dealers are tackling logistical challenges to drive profitability.
Top lessons learned from Denton and Royce:
Logistics inefficiencies cost more than you think.
– Delays in shipping extend holding costs, increase floorplan expenses, and shorten time to market.
– Arbitration windows can close before delayed vehicles even arrive, creating unnecessary liabilities.
– Dealers need systems that prioritize speed and accountability to reduce these losses.
Damage disputes can derail your operations.
– Unvetted carriers and unclear processes lead to disputes over damages, driving up costs and time spent managing claims.
– It’s vital to work with carriers who are properly insured and pre-screened.
– A clear claims process ensures dealerships aren’t stuck chasing brokers or compromising vehicle standards.
Speed isn’t optional.
– Faster shipping means quicker inventory turns and maximum profits on high-demand models.
– Denton reduced average shipping times from 10 days to 2 by rethinking operational efficiency.
– Dealers with faster logistics gain an edge in sourcing and delivering vehicles to customers.
Fair market rates drive reliability.
– Carriers perform better when they’re paid fairly, leading to fewer delays and higher-quality service.
– Prioritizing fair compensation helps build trust with carriers and improves turnaround times.
– The goal is long-term partnerships, not a race to the bottom on costs.
A strategic approach to logistics pays off.
– Leveraging better systems frees managers from micromanaging transportation and allows them to focus on selling.
– Dealers who think beyond “price per shipment” see gains across the board, from lower floorplan costs to happier customers.
The full episode is live! Stream it now —
YouTube: https://lnkd.in/eq_-VCHD
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