
The Wave 1 project laid the groundwork by establishing a post-sales profitability management system, including optimal resale price determination and channel allocation. In Wave 2, the focus shifted to developing a preemptive profitability management system that could predict and mitigate losses. Additionally, the reconditioning process was enhanced to ensure not only high throughput but also flexibility to accommodate vehicle-specific needs. Over the course of four months, Looxent implemented the following initiatives:
A. Profitability Forecasting and Management System
- Designed profitability prediction logic and models based on contract and delivery data.
- Developed tools to analyze profitability variances across return and allocation stages.
- Enhanced allocation logic to optimize contribution margins.
B. Profit Management System for Inventory Purchases
- Established logic and tools to guide purchase price evaluation.
- Defined processes for profitability review prior to purchase decisions.
C. Reconditioning Process Optimization
- Standardized costs, labor requirements, and frequency for each reconditioning task.
- Set differentiated reconditioning levels by intake channel.
- Introduced monitoring systems to track improvements and operational efficiency.
Project Outcomes
The Wave 2 Value-Up initiative enabled the client to achieve significant operational and financial improvements:
Profitability Management:
- The client now has the capability to forecast and manage profitability at every stage of the forward-purchase lifecycle. This includes monitoring vehicle value changes post-contract and delivery and optimizing profitability through enhanced allocation logic.
Reconditioning Efficiency:
- Adjustments in reconditioning levels based on vehicle condition led to a 68% increase in production output compared to the start of the year.
- Operational inefficiencies, such as process bottlenecks and logistics losses, were reduced by 40%, resulting in a highly competitive reconditioning process.
Next Steps: Wave 3 Execution
Building on the success of Wave 2, the client will now focus on optimizing profitability across all forward-purchase stages and enhancing operational competitiveness in adjacent services, such as logistics. Over the next four months, Looxent will lead the Wave 3 project, targeting effective CRM strategies to ensure realized profitability and robust logistics service capabilities. This will further solidify the client’s position as a leader in the certified pre-owned vehicle market.
The Wave 1 project laid the groundwork by establishing a post-sales profitability management system, including optimal resale price determination and channel allocation. In Wave 2, the focus shifted to developing a preemptive profitability management system that could predict and mitigate losses. Additionally, the reconditioning process was enhanced to ensure not only high throughput but also flexibility to accommodate vehicle-specific needs. Over the course of four months, Looxent implemented the following initiatives:
A. Profitability Forecasting and Management System
B. Profit Management System for Inventory Purchases
C. Reconditioning Process Optimization
Project Outcomes
The Wave 2 Value-Up initiative enabled the client to achieve significant operational and financial improvements:
Profitability Management:
Reconditioning Efficiency:
Next Steps: Wave 3 Execution
Building on the success of Wave 2, the client will now focus on optimizing profitability across all forward-purchase stages and enhancing operational competitiveness in adjacent services, such as logistics. Over the next four months, Looxent will lead the Wave 3 project, targeting effective CRM strategies to ensure realized profitability and robust logistics service capabilities. This will further solidify the client’s position as a leader in the certified pre-owned vehicle market.