We welcome the insights provided by the 2023 ABP Club State of the UK Body Repair Industry Report which helps to inform our thinking as the UK’s only dedicated total loss claims management company.
Our unique position as an outsourced, specialist third-party administrator in the total loss claims supply chain includes helping to facilitate bodyshops to reduce their key-to-key times and improve profitability. We do this through our nationwide reclaimed parts solution. We supply reclaimed parts on the same basis that a bodyshop would expect to buy new parts from an original equipment manufacturer [OEM]. But, with our parts delivering savings of up to 70% on the RRP of OEM parts, we are the cost-effective alternative. At the same time reducing key-to-key times supports bodyshops with improved productivity and lower customer mobility costs in the form of courtesy cars.
Earlier this year, we sought feedback and listened to the bodyshop market to understand their key motivations and barriers for using reclaimed parts. Availability and ease of sourcing were high on the agenda as further confirmed by the 44% of bodyshop respondents to the ABP Club Report who cited poor availability as a barrier to use or increased use of reclaimed parts. Addressing this barrier, we have designed a technology platform for sourcing reclaimed parts through e2e which integrates with bodyshop back-office systems. Streamlining the process means that visibility of parts availability and ordering is straightforward with no requirement to log into multiple platforms. Meanwhile, data integration from estimating systems enables us to dynamically understand market demand and ensure our supply network is dismantling the parts bodyshops need.
Service certainty and consistency was another key requirement that featured in our bodyshop feedback, and this comes across clearly in the ABP Club Survey results. Inconsistent quality and poor quality were cited as major issues by 59% and 33% of respondents respectively. All e2e network members supplying reclaimed parts to our centralised solution are certified by the Vehicle Recycling Association to the UK Standard for Reclaimed Parts. This means parts sourced through the new e2e platform are quality graded, warranty assured, and come with full provenance details. Service certainty is underpinned by the robust annual VRA Certification audit and a secondary audit undertaken by e2e of its independent supplier sites. We do this work so that bodyshops can have confidence in the consistent quality of our parts. And, in the unlikely event one of our suppliers gets it wrong, we can step in to put it right.
We are encouraged that market penetration has been maintained in 2023, with 78% of respondents fitting reclaimed parts and 67% fitting more than last year. However, the average of just 2.5% of total parts volumes represented by reclaimed parts signals the huge opportunity available to the market to further cut repair costs, reduce key-to-key times, improve customer experience and reduce carbon emissions.
We believe that to seize this opportunity and gain momentum as the reclaimed parts market matures, all parties in the supply chain must benefit. Commercial models that ensure bodyshops gain financially from the use of reclaimed parts are part of that equation, along with commitment from insurers to further develop their reclaimed parts strategies. This in turn will support their carbon reduction goals, whilst saving them money and improving the customer experience with the avoidance of total loss claims
Jim Loughran, CEO at e2e Total Loss Vehicle Management said: “As the UK’s only dedicated total loss claims management company with a continuous supply of reclaimed parts, we have the product, expertise, logistics and commitment to deliver parts of the right quality, at the right price and within the right time frame. We’re excited for the opportunities 2024 represents and look forward to continuing to work collaboratively with bodyshops and insurers to unlock the full commercial potential inherent within reclaimed parts. We would like to extend our thanks to the ABP Club for this valuable report which continues to impressively serve the industry year on year.”
