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Staying Ahead of the Competition with Data-Driven Insights in Circular Economies

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859-344-1925

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1980 Highland Pike
Ft Wright, KY
41017

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Saskatchewan Government Insurance (SGI) and Manitoba Public Insurance (MPI) both implemented Car-Part’s Integrated Car-Part Pro (iPro) for their collision repair facilities in 2020.

With the SGI and MPI implementations came several benefits for collision repair facilities and auto recyclers/part suppliers:

•Collision repair facilities benefit with a seamless integration with Mitchell Estimating (MCE), real-time supply chain delivery information, real-time part availability, certified supplier filtering and an assemblyoptimized workflow that simplifies recycled parts sourcing. •Part suppliers can leverage their supply chains to increase part availability and sales. •Recyclers receive additional benefits with a solution that seamlessly integrates their assemblies with component-based estimating systems in addition to marketplace-demand data that is integrated into vehicle buying and parts inventory management systems (IMS).

iPro helps meet the collision repair industry’s increasing needs for alternative parts and supply chain solutions with access to 200 million parts, daily inventory updates and real-time part availability checks when updating the estimating system.

The 2020 North America iPro marketplace’s results show a strong use of recycled and alternative parts.

Both SGI and MPI are non-profit corporations established by the Saskatchewan and Manitoba governments, responsible for administering public auto insurance. This model creates unique marketplaces where basic automobile insurance is provided to all residents and through the administering of claims represents a large portion of the collision part sales.

Claims Circular Economy

Auto recyclers are an important part of this Claims Circular Economy and can benefit from buying the Total Loss Salvage Vehicles and by selling recycled parts back into the iPro marketplace.

In its recycler tools, Car-Part provides the demand data from the iPro marketplace (and the Car-Part.com marketplace). Integrated directly into the vehicle buying and parts inventory management systems, this marketplace demand data can be localized by the recyclers for the Manitoba and/or Saskatchewan marketplaces with just a couple of clicks, allowing recyclers to use demanddriven data and analytics to drive their buying and inventory decisions.

Data-Driven Solutions

It’s easier for new part sellers to replenish their inventory based on marketplace demand since they stock multiple quantities of the same part and can restock when quantities get low. Retailers and other parts sellers have been doing this for a long time. Recyclers’ buying is much more complex since they buy whole salvage vehicles to replenish part supplies. Leveraging Car-Part’s technology, auto recyclers with strong circular economies and good demand data can make demanddriven buying decisions, providing them with a unique competitive advantage.

Car-Part is also using demand data from the $50 Billion (US)/year quoted in its marketplaces to determine which parts to write interchange for. This is important because professional repairers primarily buy parts with interchange.

Car-Part Interchange Plus (CPI+) is a recent enhancement that increases the availability of hard-to-find recycled part types.

How it works:

When there is high demand for parts with no interchange (no catalog part numbers for these parts), Car-Part writes interchange for these parts. The interchange is embedded into Car-Part’s marketplaces and systems (added to the buying tool, inventory tool and point of sales system) and the inventory data is fed back into its marketplaces, so recyclers are on an even playing field with other parts suppliers.

Essentially Car-Par t.com takes its marketplace demand information, feeds it into the vehicle buying platform (Bidmate) so recyclers have the marketplace demand data and can use it to determine how to buy the right vehicles to stock their parts inventory. The Salvage vehicle information and marketplace demand data is then fed into Partmate, Car-Part’s inventory tool so recyclers know which parts to inventory, which can then help recyclers sell the parts in their point of sale system and in Car-Part’s marketplaces. The CrashLink Inventory tool allows recyclers without a Car-Part IMS to assign CPI+ interchange numbers to their parts.

How it Began

More than a decade ago, Car-Par t Executives and Product Managers visited SGI in response to an RFP request for an IMS. Car-Part was fascinated by the fact that SGI was a ubiquitous insurance company in the province and an Auto Recycler. SGI Salvage liked Car-Part’s end-to-end workflow and a partnership was born!

SGI Salvage uses Car-Part’s vehicle buying, inventory, and point of sale systems, and SGI Claims uses Car-Part’s iPro Marketplace integrated into Mitchell’s Estimating System. Having participants in the same company on both the buying and selling side of this circular economy is resulting in improved technology and connecting the data and insights at each step of the workflow. MPI utilizes the same iPro technology integrated into Mitchell’s Estimating System. The insights available to SGI Salvage are also available to other recyclers in both Saskatchewan and Manitoba who use Car- Part’s software. Manitoba and Saskatchewan recyclers can take advantage of a trail blazed by SGI Salvage.

Using extensive data and analytics to drive an Auto Recycling business can be worrisome. Adapting to technology and relying on it to drive business requires courage and diligence, but the rewards are big. Recyclers’ competitors are very good at balancing inventory levels. For recyclers to compete with those levels of efficiency, investment in technology using demand-driven marketplace data to drive decisions is essential.

Using this marketplace data to buy vehicles, inventory, and sell parts provides recyclers with a distinct competitive advantage. When recyclers buy vehicles in the province that have parts where the demand is, they get many parts they may not have been counting on. Selling these parts increases recyclers’ margins and allows recyclers to be more competitive when buying salvage vehicles, while minimizing the vehicles that get exported away from their market. The insurance company can benefit from increased Salvage value and professional repairers have more part supplier options.

“Circular economies leverage the tremendous effort required to build great parts. They provide economic benefits to its participants and great environmental benefits. We are at the infancy of optimizing these circular economies, but the lessons we learn in these frontier marketplaces will help global adoption of circular economies,” said Jeff Schroder Founding CEO of Car-Part.com. “To help control claim costs, SGI Salvage strives to make it as easy as possible for repairers to use recycled parts and Car-Part’s iPro technology helps us do that,” said Ryan Smith, Vice President, Saskatchewan Claims and Salvage Operations, SGI. “This benefits the collision industry and SGI as a public auto insurer, because it returns value to the Saskatchewan Auto Fund through the sale of these parts.”

“Our focus when introducing iPro was to streamline workflow processes for both MPI and our repair shops by eliminating some manual steps required to update relevant recycled parts sourcing and estimate information in Mitchell Estimating” said Steve Lupky, Director, Physical Damage, MPI. “iPro’s seamless two-way integration into Mitchell Estimating gives Manitoba repair shops the ability to search for parts and see only those that can be delivered within their cycle time window, meet our warranty criteria, and conform to our quality standards while efficiently adding suitable parts to their estimate.”

For more information on how to join the iPro marketplace, please visit http:// products.car-part.com or contact Tom Julius at TomJ@Car-Part.com. For more information on Auto Recycling products and services contact Luke Gamm at LukeG@Car-Part.com or 859-344-1925.

CAR-PART.COM
1980 Highland Pike
Ft Wright, KY
41017