Automotive industry embraces consumer technology trend

A growing number of dealers are cutting transport costs by using online aggregators that allow them to compare provider quotes, says Manheim.

The number of vehicle movements arranged through Movex, Manheim’s vehicle logistics platform, increased by 55% in 2018 as dealers looked for ways to manage costs and improve margins.

Similar to a consumer price comparison website, the Movex platform allows dealers to advertise a delivery online, and gain quotes from hundreds of transport providers in minutes.

Daren Jones, MD of Movex, commented:  “Increased use of aggregator technology by businesses mirrors the change in consumer behaviour that has led to the growth of price comparison sites for insurance and utilities.”

“On average, dealers that move to posting all their jobs on Movex see a 15% saving on transport costs over the first three months.”

“Traditionally, dealerships arrange transport through a preferred supplier list, and are unlikely to get quotes from more than two or three providers before agreeing a price.  Movex drives competitive pricing, because each job can be seen by hundreds of transport providers.”

So does this cost saving come at the expense of good customer service?

Jones continued: “Unlike a consumer price-comparison site, we work with new dealers to register their ‘tried and trusted’ providers on the platform, allowing them to compare costs without having to compromise on service.”

“The Movex rating system also allows both transport provider and customer to share feedback about one another, so it pays for both parties to deliver on their promises.”

Manheim’s Philip Nothard added: “The growth of aggregators in the automotive industry is no surprise when you consider the results of our latest dealer sentiment survey, which show that 54% of dealers believe margin pressures are worse than prior year.  With that in mind, it’s more important than ever to get the best possible deal on additional costs like transport.”

“Using an aggregator is a simple and effective way of reducing costs and saving time without compromising on service.