INDUSTRY CASE STUDY

Why Recyclers Should Care About Collision Repair Industry Open Interfaces

By Jeff Schroder, CEO, Car-Part.com I

n 2017 and 2018, there has been a lot of activity in the Collision Repair Industry regarding open interfaces to estimating systems. Mitchell com- mitted to providing open interfaces to its esti- mating system when it announced its Program Freedom. CCC introduced its Secure Share network which seeks to improve data security by controlling the interfaces with its estimating platform. AudaEx- plore announced that it is going to support CIECA (Collision Industry Electronic Commerce Associa- tion) BMS interfaces in 2018. BMS is CIECA’s newer interface standard, designed to replace the popular CIECA EMS standard. When measured by dollar amount, recycled parts represent the third largest part type used in the collision industry: OEM (66%), aftermarket (18%), and recycled (10%). Being the smaller parts provider in the marketplace makes it harder to get interfaces that allow recycled parts marketplaces to integrate with collision estimating systems. The estimating system is the place where the insurance company and the repairer interact in the process of repairing a vehicle. Openly competi- tive integrated parts marketplaces provide collision buyers choices regarding where they source and pro- cure their parts. This is especially important when selling recycled parts into the collision repair supply chain, because recyclers face many barriers when pursuing collision industry sales, and marketplaces optimized for the use of recycled parts can have a profound impact on recycled parts sales. Cycle time is very important in the collision indus-

try because car owners are happier when their car is fixed quickly. Insurance companies spend a lot of money advertising for new customers and don’t want to lose existing customers due to a slow repair. As more advertising dollars are poured into the in- surance industry, this factor becomes more critical. Barriers to the use of recycled parts in the colli- sion industry have included delivery times, quality, availability, and the fact that the collision industry

is centered around component parts (whereas the recycling industry tends to be organized around part assemblies, which are more cost effective to recycle and represent a better value than the individual components). To increase the use of recycled parts in the colli- sion repair industry, it should be easier to source, procure, and use recycled parts than OEM or after- market parts.

The Car-Part Model

The 2017 launch of Integrated Car Part Pro (iPro) was designed to go a long way towards meeting that goal. iPro is integrated into all three estimating sys- tems to allow a one-click launch of the Car Part Pro marketplace. iPro’s Mitchell integration is a two-way bridge allowing the replacement of OEM and after- market parts with recycled parts directly from within the iPro marketplace. iPro simplifies the process of sourcing recycled parts within the collision repair in- dustry by defaulting the part search to assemblies in- stead of components. It also allows a one-click search of components when assemblies are not satisfactory for use on the estimate.

This technology is powered by over 5 million com- ponent-to-assembly mappings performed by Car-Part in the last 5 years. iPro solves the cycle time, availabil- ity, and quality problems with its supply chain tech- nology (which provides real-time delivery informa- tion with all parts from recyclers who are configured, including the parts recyclers sell from their supply chain). The result is a 600% increase in the availabil- ity of recycled parts from Car-Part certified recyclers. This allows insurers and repairers to filter part choic- es using ARA “A Grade” parts, Car-Part Certified recy- clers, and delivery times. Most iPro buyers use these filters, and 48% of the iPro parts added to estimates are supply chain (or brokered) parts.

iPro 2017 has been deployed to over 10,000 re- pairers, insurers, and independent appraisers (IAs).

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March-April 2018 • AUTOMOTIVE RECYCLING