By: Brian Bachand
The data you possess is one of your biggest assets, and there are so many beneficial ways of using it to maximize your profits.
Today’s modern auto recycler has learned that innovation has become just as fundamental as one’s own intuition. What sold in bulk a few weeks ago may dry up today.
Geopolitics and market shifts have us all riding the wave of financial scrutiny and insecurity. For fellow Northeast recyclers, let's not forget about the weather. The trends of today steer the trajectory of tomorrow.
If we are to continue to evolve, it is imperative that we transition our intuition into iterative innovation. What this means is that all of our team must learn how to access, understand and manipulate our yard’s data. And from there, we can use our tools and intuition to explore new avenues of innovation that will keep us relevant and resilient at the dawn of digitalization.
Are you a numbers person or one who simply goes with the flow? Maybe you are more of an operations overseer … observing the logistical train of events and making sure things continue to progress. Or perhaps you are more big-picture focused, empowering your team to do what is needed so you can better prioritize your time and efforts.
Regardless of how you operate, the secrets to your success align with the numbers adding up in your favor. Simple addition, people, the numbers do not lie. Yet it is a must, moving forward, that we figure out how to understand and manipulate the numbers so that the odds are ever in your favor. So what is our data telling us, and why is it so important to leverage this asset?
What is the average amount we spend on a vehicle? What determines how much we are willing to spend on said vehicles? Are we buying them to fully dismantle, or pull parts as we go, perhaps for our self-service lot, or maybe just to process for the shredder? Knowing these numbers within your operations is critical; it is buying power. Determining the types of vehicles you acquire based on the data you have is essential to knowing what you should buy and what you can afford.
All of this is dictated by the customer demographic and demand.
It is all about what we sell and what we sell well. What are we getting calls about and giving quotes for? And what are the bulk or high-dollar parts that we are brokering? All of this data can be accessed in your YMS system. Even with the gripes we all may have about each one of these tools, be it Powerlink, Checkmate, Pinnacle, etc., there are ways and tools available to export your data and create reports on it. And one of the key ways in the future to access, understand, and manipulate one’s own data is through Artificial Intelligence or AI.
Love it or hate it, use it or abuse it, it is time to accept that this tool can revolutionize our industry.
There are a few ways we can put our toes in the water with AI, while companies offer tools to dive right in. At the moment, there are free AI tools within reach of all our fingertips. Be it ChatGPT, OpenAI, Gemini, or whatever new app or online resource that you may have heard of. These tools, if we choose, are there on our smart devices and computers to help us think outside the box. AI may not be perfect, but with the right data and a structured set of rules, its machine-learning capabilities offer a revolutionary shift in how we do business.
Do you want to create a report of the top 10 sales interchanges for engines? Then export your YMS data and plug it into an AI tool. Manipulate the tool to get the most out of your data. What about looking at a breakdown of your shop supply expenses so you can pinpoint excess or waste? Access your data and apply an AI tool to perform an analysis using the lenses and parameters you specify. We can find out where we are overspending, wasting, or not spending enough.
Our salespeople can plug in used part installation diagnosis issues into these types of tools while on the phone with the customer. We can compare this afterward with our transmission shop or one of our techs to confirm its validity, but in the meantime, we now have the means to achieve more effective efficiency and recycling results.
This is just the tip of the iceberg.
If you have not tried one of these tools, I highly recommend it. There are tutorials and videos to accompany these tools, so you have a sense of how to get started. But do not be afraid to try and fail and to try again. These tools have called for the creation of a surplus of debatable data centers.
For recyclers, this trend, paired with geopolitics, what is going on in the Middle East and China, looks to influence the copper and perhaps the precious metals market as well. Just the other day, copper was up to $6.50 a pound, depending on the market. This benefits auto recyclers' wallets while giving modern recyclers leverage in the current transportation sector.
It all comes full circle: as we continue to evolve our operations, implementing these technological advances will help us drive the circular economic model while advancing our campaign as stewards of sustainability.
The data you possess is one of your biggest assets, and there are so many beneficial ways of using it to maximize your profits. We are in business to make money. We are not running museums, nor are we deliberately throwing money away by buying the wrong vehicles or by not prioritizing inventory and sales. But as everyone knows, there are only so many hours in the workday, and it is crucial to make the most of our time. Well, there are now tools and services out there to help us do just this.
Companies like Auto PARTnered Solutions (APS) are revolutionizing the auto recycling industry. Chris Daglis, Founder & CEO, has created this comprehensive service with a team that monitors its AI tools, enabling human judgment and oversight of this tech-savvy software. APS has created a tool that can vet out sales calls, value parts at auction, price parts, and so much more. By breaking bottlenecks, this software streamlines your speed-to-market.
The team assigned to help you use this AI service delivers significantly higher success rates when implementing an AI Tool on your data than just letting you fend for yourself. Not only are they placing these tools where and whenever you need them, but they will also help you increase efficiency, giving you the ultimate chance to maximize your profits and workflow.
Another tool in the works is Sabhi. Founder Lisa Samuel and her team have taken auto recyclers' cybersecurity to the upper echelon. They are working on a product that aims to capture, or rather funnel, all of your data into one spot. Communications, Operations, Payments, Reports, and Financials all in one place for all your team to access.
This tool pools your data so you do not miss anything due to what they have coined “Operational Loss Goblins.” This service protects the recycler's best interests by ensuring revenue does not leak out before you even reach the checkout point. Having spent many years advocating for auto recyclers' cybersecurity, Lisa is creating Sabhi to handle everything related to payments. A major advantage of this software is that it integrates easily with your YMS. Be on the lookout for this and other like-minded AI Tools such as Tractable, Intropy, BidBuddy AI, PolyPerception, and other YMS companies' own AI Integrations.
Intuition tells us to go with our gut, to weather the storms and remain vigilant in our pursuit of automotive success. But for how redundant it may sound, why should we keep working harder instead of smarter? Pairing our data with AI tools enables us to provide support and resources to our operations.
How far we take it in terms of implementation is for each of us to decide. Maybe you just want to try out core market research or an engine diagnosis on the Gemini App. Or perhaps you want to go full tilt and sign up to have Ari from APS be your virtual gatekeeper or possibly integrate Sabhi into your YMS. What we cannot do is just go through the motions and begin to ignore, or rather not optimize and utilize our data. Understanding how these numbers translate into the hows and whys of our yard is the competitive advantage we all need to make better decisions. Better decisions equate to a better business that aims to create a brighter future.
Everyone has the time and, if they so choose, the access and means necessary to leverage their own data. Understanding your numbers will translate to where you are winning and where you are losing. Where you should be saving money and where you should be spending it. Not only that, but if you look at the big picture your data creates, you will begin to get a real idea of what your business does and where it spends its time. From there, we can work out what we want to do and how we plan to get there.
AI tools allow us to analyze large amounts of data, perceptions, and facts that previous conversations, searches, and research have not allowed us to do as quickly or efficiently. AI will never replace the human element, but it can be used as a resource and even a complementary team member throughout our organizations.
If we are looking to continue driving deeper into the age of instant gratification while remaining thought leaders in our industry, it must be done through integration. Integrating your intuition with innovation, implementing strategies to optimize your data, and installing AI tools where and when you can to maximize your success. As President Dwight D.
Eisenhower once said, “Neither a Wise man nor a Brave man lies down on the tracks of history to wait for the train of the future to run over him.”
Brian Bachand is a second generation auto recycler, who helps own and operate Westover Auto Salvage in Belchertown, MA. He is on the Board of Directors for the Auto Recyclers Association of MA and a proud ARA Member. Brian has a Bachelor’s Degree in Accounting and paired with almost 25 years of auto
recycling experience, will continue to implement ARA Advocacy for being a leader in the auto industry.
