Manheim: Pedal to the Metal
Automotive
Written by Meghan Flynn   
Thursday, 01 May 2008
Manheim: Pedal to the Metal - American Executive - RedCoat Publishing
CEO Dean Eisner says strong relationships combined with technology helped Manheim become the most successful vehicle remarketing company in the world.
Premier Business Partners:

Ashland Oil
IBM
Max Media Design
MLT Creative
Southern Fluid Systems
Zephyr Environmental
Popular opinion says that the Internet and technological developments are the driving forces of business these days, but Manheim’s Dean Eisner says there are nuances to the relationship. “Technology itself doesn’t revolutionize anything,” said Eisner. “It helps with processes, but it’s a tool, and how you use it is what matters.”

Manheim: Pedal to the Metal - American Executive - RedCoat Publishing
Dean Eisner, CEO
Founded in 1945, Manheim began as a traditional auto remarketer, eventually growing to 145 operating locations and 12 service centers worldwide. Eisner, president and CEO, said the company’s success came mainly from the original owner’s strategy of allowing its local branches a great deal of autonomy. Until the 1990s, everything from branding to the auction process was almost entirely localized due to the large variation in car markets from location to location.

However, with the advent of the Internet came a demand from Manheim’s customers for a more consistent experience. As a known leader in the industry, the company rose to the challenge, becoming the first to broadcast auctions via satellite and introducing electronic auto condition reporting.

Burning rubber
One of the company’s recent forays into technology resulted in Simulcast, which allows buyers and sellers to participate in auctions through a live audio and video feed. It also registers bids made remotely at the same time as bids made on the floor of the auction—no small feat when you consider the thousands of dealers taking part.

Eisner said that each week, more than 750 Simulcast sales are conducted, and since its formal launch in 2002, approximately one and a half million vehicles have been sold using the program.

Last June, the Computerworld Honors Program recognized Manheim as a laureate for the success of this innovative technology, a unique distinction for a non-technology company.

The second technological advance, Online Vehicle Exchange, was introduced in 2004 and is now known as OVE.com. The site facilitates sales between buyers and sellers outside official Manheim auctions. Designed to be a safe, efficient way to sell wholesale vehicles online, OVE.com features a registration system (so Manheim knows who buyers and sellers are) and a two-step purchase (Manheim pays the seller and collects from the buyer only after it determines the vehicle was delivered as promised). In the case of a dispute, Manheim steps in and arbitrates.

Eisner said the program has been an unqualified success, helping companies sell used cars worth tens of thousand of dollars easily and safely. However, Eisner reiterates that it’s not just about the technology. “We create relationships with our clients, and those have nothing to do with the technology that we use. If it weren’t for those relationships, the technology wouldn’t work at all,” said Eisner.

In the driver’s seat
Eisner firmly believes that the company’s egalitarian culture is more important than the company’s technological successes. He described frequent meetings with employees at all levels where everyone has an opportunity to make a suggestion.

“Rarely are there mandates that come down from corporate,” he said. “Instead, we have employees that are thrilled to be asked what their opinions are. It may slow the process down, but we are set up for success because down the line we won’t have conflict with employees who didn’t feel they had a voice in the changes that were made.”

Eisner and his team use surveys to find out what employees want. Last year’s survey had a response rate of 85%. When asked what was most important for the company, the most common answer was to focus on serving the customer—not benefits or bonuses, said Eisner proudly.

Employees are also an important part of the company’s research and development center, Manheim Drive Center, which acts as a working auction and reconditioning facility. Manheim hosts events at the center, inviting manufactures, dealers, and salespeople to discuss issues they feel are important to them and the industry. And when the company sees a problem, it asks for employee volunteers to spend a few weeks testing out solutions and making recommendations for changes.

“Above all, we emphasize a culture of finding solutions,” said Eisner. “We’ll say, ‘Okay, here’s this issue,’ and we get people raising their hands saying, ‘Yeah I want to be a part of that.’ That has been part of the fabric of this company for years.”

Although the company now holds auctions in 18 countries and last year handled 10 million used vehicles, Eisner said he is confident the company can grow even further, thanks to those engaged employees. “You could say success is a healthy bottom line, but I don’t think you can get that without employees who have a can-do attitude. When you have that, you can do anything,” he said.
 
< Previous Story   Next Story >