The Automotive Service Association’s (ASA) volunteer leadership, staff and affiliated associations from around the U.S. continue to share information, comments and concerns regarding the State Farm pilot involving an electronic parts ordering application. The pilot is being conducted in Tucson, Ariz.; Grand Rapids, Mich.; Charlotte, N.C.; and Birmingham, Ala.
During a conference call held June 12, ASA’s affiliated groups in the Tucson (ASA-Arizona) and Grand Rapids (ASA-Michigan) markets provided comments regarding the direct impact the pilot has had on its members. Other ASA-affiliated associations expressed concerns during the call, asked for clarifications and provided the ASA volunteer collision leadership and staff with recommendations for future actions.
“ASA is fortunate to have grassroots connections throughout the United States through the network of its affiliated associations," said Denise Caspersen, ASA Collision Division manager. "Holding nationwide team calls among ASA staff and our volunteer leaders broadens the reach of this conversation and ensures our members’ voices are being heard.”
Pilot program concerns presented by ASA were:
• Reduction in collision repair facility profits based on:
– Reduction in manufacturer suggested retail price (MSRP) for parts
– Increased administrative costs
– Increased cycle time delays
• Increased administrative time based on:
– Suppliers on pilot report increased administrative time
– Repairers on pilot report increased administrative time
– Increased “re-keying” of estimates based on lack of system integration
• Overall concern of the influence insurance agreements have on collision repair processes
• Electronic application will have a negative impact on local repairer-supplier relationships
• The “Price-Perfect” price listing of recycled parts continues to complicate the parts selection process and hinder the efficiency of the repair
• Potential expansion of the “parts search” market beyond the local repairer-recommended suppliers
• Potential expansion of this type of application being applied to other hard products necessary for a proper collision repair
• Cost of the application to the supplier will be passed on to the repairer and the consumer
• Shops in pilot areas expressed a lack of training and understanding of the application
• Pilot shops also found a lack of responsiveness from State Farm and PartsTrader to questions from repairers and suppliers participating in the pilot
• Lack of information regarding how this will benefit the consumer
• Concern of the overall legality of the program
“ASA is committed to serving the entire industry, as it has for the past 61 years," said Ron Pyle, ASA president and chief executive officer. "Whether the business is family-owned and operated, or a corporate or franchise location, it is incumbent on the association to provide factual information about the impact and implications of any development that could be disruptive or transformational. ASA has become a trusted source because we perform the due diligence our members expect in order to make informed decisions.”
ASA’s research has included interviews with State Farm, PartsTrader and collision repairers – those who participate in direct repair program agreements (including some who are currently participating in the pilot of this application) and those who don’t participate in DRPs.
Collision repairers may share their comments or concerns regarding the pilot by contacting Denise Caspersen at [email protected], (800) ASA-SHOP, ext. 106, or (817) 514-2906 (direct).
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