FLEETDRIVE
Upstream selling ultimately allows fleet managers with depreciating assets to become more proactive in the remarketing process . Rather than waiting until the final stage of a vehicle ’ s fleet life cycle and eventual point of sale , creating a premarketing plan enables the client to commence the remarketing process prior to the vehicle transitioning out of the fleet service .
Other important benefits of online upstream marketing / selling include :
• Convenience for buyers , who are able to purchase more vehicles online without the need to visit a physical auction house .
• Logistical costs are reduced and even avoided by not moving vehicles to a physical auction site .
• Inspecting vehicles early in the process ( i . e . Usually 21 days prior to the grounding of the vehicle ) which enables any damage to be properly managed and administered via an impending insurance claim .
• Upstream selling is also growing in popularity from environmental perspective . Under the upstream selling model , a reduction in carbon emissions can be attributed to the ceasing of unnecessary transport movement of vehicles . Each vehicle will on average be transported 141 kilometres less by not transporting it to an auction house location . This equates to a saving of 92.08 CO2-e ( tonnes ) per 1,000 vehicles .
While there are several approaches to upstream marketing / selling , ultimately the approach depends on the client ’ s requirements . It is vitally important to customize a solution that is suitable to the fleet manager ’ s needs which would factor in the following aspects :
• Determining goals and objectives which involves identifying the sale platforms to be implemented and the volume of vehicles when selling upstream .
• Establishment of a written policy for an upstream remarketing program should be outlined and monitored on a regular basis ( i . e . As a guide , monthly performance evaluations are recommended ).
• Communications with participating stakeholders is required throughout the entire sale process . Communication and feedback from all parties is necessary to ensure that the upstream selling process drives continual improvement and success .
Finally , and most importantly , we at Autorola , believe that a successful remarketing program will include an upstream selling component which will ultimately deliver the following tangible benefits :
» Significantly increasing vehicle residual values and returns for fleet managers .
» Regularly equipping clients with positive resale data for future analysis .
» Facilitating an environment which is both conducive to an efficient vehicle de fleeting operation and disposal process .
» Innovative and effective sales streams platforms such as “ short cycle ” auctions which will provide mutually beneficial results for both buyers and and sellers involved in the vehicle remarketing process .
ISSUE 26 DECEMBER 2020 / WWW . AFMA . ORG . AU 11