E-commerce offers efficiencies for finding recycled parts

Jan. 1, 2020
Phil Allen used to launch his search for recycled repair parts by calling the same handful of salvage yards around Memphis that he'd been calling on for 20 years. An hour later, he'd have a fix on a part and a price. Multiplied over thousands of part
Phil Allen used to launch his search for recycled repair parts by calling the same handful of salvage yards around Memphis that he'd been calling on for 20 years. An hour later, he'd have a fix on a part and a price. Multiplied over thousands of parts and more than a hundred cars each month, Allen and his people felt leashed to the phone.

"I didn't have enough time to be put on hold while the vendors are grabbing three other lines," says the owner of Allen's Collision Center. "I needed to do something about efficiency."

Now, when Allen needs recycled parts, he launches his Web browser. A year ago Allen started using a new online recycled parts search engine, and now has shrunk that hour on the phone into minutes on the keyboard.

"It's just, punch in the estimate for 30 seconds and do your thing while it's searching," he says. "In a minute it's done." That means customers get estimates faster than they're used to. "Now, I have an opportunity to capture that walk-in right away," he says.

Efficiency is money for today's shop owners who can find recycled, reconditioned and aftermarket parts in one automated marketplace. Shops can choose an online recycled parts search engine for one-stop, real-time shopping for all alternative-part types, or they can use the estimating companies' static databases to source alternative parts.

Working within body shop management systems, users of the live, fully automated search engines can look for and buy parts, pick their delivery dates and track returns. This essentially eliminates the "phantom part" phenomenon that occurs in static database products.

"It's all about efficiency gains and that extra speed could mean the difference between a supplement or putting a person in a rental car, both of which cost money," says Ryan Ard, a regional vice president for APU Solutions.

In the mid-1990s, the use of recycled parts became a priority for insurance carriers. In the early 2000s, environmental awareness, led by Greenleaf and LKQ Corp., raised the profile of recycled parts. Today, increasing insurance premiums and a tough U.S. economy make recycled parts more attractive.

Quick access to recycled parts allows shops to fix cars that wouldn't be worth fixing for the price of a new part. This benefits drivers who hold onto their cars longer. More drivers are avoiding claims and paying out-of-pocket for repairs instead of risking higher premiums.

"Some are afraid they'll lose coverage," says Allen, adding that his customer-pays are up 20 percent each of the past two years. "I've seen people come in and pay $5,000 because they don't want their rates to go up."

Insurance carriers often ask shops to use more alternative parts. Online solutions can track those insurance details.

"Rules-based alternative part intelligence and insurance-part profiles on the front end allows owners to protect their shops by only searching for parts on vehicles that are allowed by the carrier," says Scott Westbrook, vice president of sales and support at APU Solutions.

It also removes the "he-said/she-said" problem that can occur when a part arrives at a shop and doesn't meet quality standards. "Instead of trying to recall a phone conversation, you can go into the network and see the quoted quality information in black and white," he says.

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