SMA Technical Services Growth
Accelerates
Saving time and money is the essence of the SMA
Vehicle Remarketing Technical Services operation - and with good
reason.
The recession created a renewed focus upon vehicle stock levels
and stock controls. Reduced stocking levels had a significant
impact upon the bottom line, yet independent analysis reveals that
stocking days fell by just one day from 58 to 57 days on average in
2009. Further analysis reveals that it frequently takes
between 10 and 20 days for stock to emerge from the preparation
cycle, and that it can cost far more than expected when fully
prepared. Time and money is of the essence in the preparation
cycle; optimising both requires management focus and accurate
reporting.
Armed with this insight SMA has rapidly expanded its Technical
Services operation, investing significant sums in both people and
equipment to create the only all under cover option for PDI and
de-fleet at its Edinburgh, Leeds and forthcoming Birmingham
Centres. The under-cover option ensures that assessment and
remedial action can be undertaken in the very best environment,
light dry and comfortable, to ensure the very best work can be
actioned. The goal was simple to reduce the distribution
cycle, by preparing cars for vendors and buyers that is showroom
ready, keeping buyers or vendors fully appraised of time and cost
implications throughout the process.
"Value chain analysis clearly shows that speed is of
significant importance in making budgeted profit on used car
sales. We know that cars sold in the first 30 days
on stock typically exceed budget by over 25%; those sold after 45
days generally failed to make budget. If a car is stuck in
the preparation cycle for 10 - 20 days then its chances of
achieving budget are severely limited. Too often because the
purchase and preparation processes are often out of sight,
they can be out of mind; but we can help". Notes SMA Vehicle
Remarketing Group MD Bob Anderson.
SMA Technical Services operates at all SMA Centres and provides
fully equipped bodyshop and servicing facilities, and a team of
trained technicians ready to appraise and repair vehicles ready for
market. Either pre-sale for vendors, or post sale for buyers,
the team can provide a full price and timeline for rectification
work to be completed. The service has been established to provide
Just in Time support, so speed is always to the fore.
"The goal is simple" notes Anderson "to get cars to the
forecourt faster for our customers. We know that time is
money and typically we are taking up to seven days out of the
cycle, more when we act on behalf of vendors and in the focus upon
profit this makes a real difference to everyone".