The expert started his career at CarMax where he spent 11 years in various operational roles: He managed monthly purchasing and pricing of an average of $15 million in inventory, led the buying departments for the three Dallas locations with a staff of over 30 employees, and created and instituted new purchasing strategies to optimize revenues, staff performance, and to ensure compliance with company directives. He then joined Drivetime for nearly 3 years as the head of the company’s inspection centers before moving to Carvana for the past 8 years. As a Director of inspection and reconditioning centers at Carvana, the expert led all aspects of the facilities from inception to 500+ team members, from zero to 1,000+ weekly production units, multiple shifts and production lines while overseeing construction of a 60+ acre facility.
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From the point of purchase to the point of being ready for the website, it was probably closer to 18 to 20 days. As you probably know, with all the media attention it has received, you have to be very careful about when you have the title. Legally, from the point of purchase, they have 30 days to supply it. So, you could have the car completed well before that, but it still just sits until the title is there before you can put it on the website. There are a few different ways to measure cycle time. One is when Carvana is photo complete and ready for the website. From a reconditioning standpoint, you have no control over whether the title is there or not. So that's where Carvana's cycle time calculation ends.
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Previously, a vendor managed the parts department. Now, we have an in-house parts manager and associates, people with a vested interest.
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Despite being considered a technology company, Carvana hasn't invested much in improving the inspection and reconditioning process. This process is still relatively simple and outdated, and there's technology available that could be leveraged. There's a lot of room for them to refine this process and increase efficiency. However, their priority is still to improve the front-end user experience. I'm not saying this is necessarily wrong, but there's still a lot of potential to improve the reconditioning process. It's far from being as good as it can be.
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The expert started his career at CarMax where he spent 11 years in various operational roles: He managed monthly purchasing and pricing of an average of $15 million in inventory, led the buying departments for the three Dallas locations with a staff of over 30 employees, and created and instituted new purchasing strategies to optimize revenues, staff performance, and to ensure compliance with company directives. He then joined Drivetime for nearly 3 years as the head of the company’s inspection centers before moving to Carvana for the past 8 years. As a Director of inspection and reconditioning centers at Carvana, the expert led all aspects of the facilities from inception to 500+ team members, from zero to 1,000+ weekly production units, multiple shifts and production lines while overseeing construction of a 60+ acre facility.