Living the Green
At the recent annual conference of the Vehicle Recyclers' Association (VRA), we were all introduced to a new and incredibly comprehensive piece of research into the carbon emissions savings from the use of 'green' parts. The significance of this piece of work should not be underestimated.
The whole Total Loss claims sector now has a new, robust, and freely available measure of carbon savings across the top 61 parts being used in the accident repair and mechanical sectors. From engines to doors, bumpers to steering units, this VRA-commissioned work sets a new standard of measurement that every player in the sector can use.
Insurers, repairers, parts buyers, garages, and anyone else interested in this area can refer to the new measures. Most importantly, we will all be speaking the same language now. The days of proprietary systems are somewhat opaque in their methodologies and only available to a privileged few, but they are well and truly over. In establishing a level playing field, the VRA has done the whole industry a huge favour, and they are to be congratulated for their effort.
New Rules, New Systems
Nevertheless, whilst demand is growing and the VRA research is incredibly helpful, we must admit that the real-time penetration of green parts is still pretty limited.
At that same conference, a leading insurer reported that they had used only 4,000 such parts across the whole of their repair portfolio in the preceding year. This is certainly welcome, but it seems to be a very small number when compared to their overall needs. As an industry sector, we need to 'step up to the plate' if we are to exploit the leverage that the VRA report and other initiatives give us.
Specifically, buyers of green parts and 'those with influence over buyers, such as the insurance sector, need easy access to green parts stock - plus consistent pricing, delivery, and quality. All of this needs to be bundled into modern systems of control and reporting that are equivalent to those used by the OE and non-OE sectors. If green parts are to compete fully with alternative options, then buyers need similar and complementary systems to make their lives easier.
We all know of current initiatives in the marketplace, and those operators are to be commended for their efforts. But technology does not yet keep pace with the underlying needs of our markets, and we must all strive to deliver a new breed of system that is easy to adopt and integrate with existing work practices.
Collaboration and Co-operation
Here at e2e, we are fully committed to delivering such a system into the market for use by our clients (watch this space). However, it does occur to us that some of the technical and logistical challenges to be overcome might be better resolved by a collective industry effort to collaborate and move forward.
We all want to compete and succeed, but sometimes it is worth a degree of co-operation to fully exploit an opportunity. We will continue to work closely with the VRA, Thatcham Research, and other institutions to help deliver a great future for the green parts sector.
In the meantime, we urge insurers and other players to come to the table and talk to us about how we (and others) can meet your needs, fully exploiting the opportunities available to us all.