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What We Do
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Contributing to Business Innovation and Value Enhancement for Diverse Clients

Looxent provides clients with practical and implementable solutions, driving fundamental change that leads to significant improvements in business value. Through this approach, Looxent positions itself as the most trusted partner for clients, consistently proving its reliability and commitment.

Automotive & MobilityCompletion of Wave 3 Value-Up Activities for Profitability Management at a Total Vehicle Solution Provider


The client operates a comprehensive service business spanning the car lifecycle, from vehicle procurement to on-site maintenance, damage repairs, refurbishment, and resale. Backed by robust capabilities in manpower and infrastructure, the company ensures steady vehicle volume through forward contracts with leasing and rental companies. This structured vehicle acquisition approach is a defining feature of their business model, supporting the strategic objective of expanding operations while maintaining profitability at every stage of growth.

Navigating Price Ambiguities in the Used Car Market
One of the defining challenges of the used car market is the lack of clear pricing standards. Although factors such as mileage, accident history, and optional features influence pricing, market trends—such as supply and demand dynamics—often dominate valuation. This leads to a lack of trust from consumers and revenue uncertainties for sellers, who tend to operate as small-scale independent businesses with limited resources.

In this market context, our Value-Up initiative aimed to optimize the client’s capabilities to increase the share of high-quality, profit-generating vehicles. Waves 1 and 2, conducted over the past year, focused on establishing internal operational baselines and profitability management frameworks. Wave 3 concentrated on minimizing profit variances by incorporating external factors, such as user behaviors, into actionable operational capabilities. Over 4.5 months, the client enhanced their internal capabilities, enabling tailored service solutions that align with customer and vehicle needs throughout the lifecycle. Additionally, logistics optimization efforts improved cost efficiency and streamlined dispatch management.

Key Activities

A. Minimizing Profit Variances

  1. Developed a tracking system for revenue variance between contracted and returned vehicle volumes.
  2. Identified user and vehicle needs, formulating targeted response strategies.
  3. Defined short-term CRM activities for mitigating profit variances and established tracking mechanisms.
  4. Developed a comprehensive long-term CRM operational framework.
  5. Designed a training roadmap to enhance necessary skills.
  6. Built a performance monitoring system.

B. Logistics Optimization

  1. Established profitability management systems for vehicle collection hubs.
  2. Codified dispatch planning processes.
  3. Devised strategies to handle increasing volumes.
  4. Created an integrated framework for vehicle information management.

Results Achieved

The 18-month Value-Up initiative, including Wave 3 activities, delivered substantial improvements:

  • Profitability increased by 33% compared to the previous year.
  • Revenue grew by 50%.
  • Forward-procured vehicles achieved a turnaround in contribution margins.
  • Logistics efficiency, measured by T/P vehicle utilization, improved by 5%, ensuring readiness for future volume expansion.

The client has now transitioned to stable internal operations and is actively pursuing new solution offerings for additional clients. Looxent will continue to provide periodic monitoring and operational recommendations to support ongoing improvements.



LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226      E  service@looxent.com 

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© 2024 LOOXENT. ALL RIGHTS RESERVED.


LOOXENT

A  21F. Parc.1 Tower2, 108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea 07335

T  02-546-8222      F  02-546-8226

E  service@looxent.com 

© 2024 LOOXENT. ALL RIGHTS RESERVED.