After conducting an extensive survey of its members across the U.S., Team PRP (Premium Recycled Parts), a national network of independent auto recyclers, has decided it cannot endorse PartsTrader in its present configuration. However, it has fully endorsed the use of eProcurement mechanisms to automate and add efficiency to the procurement of OEM recycled auto parts.
The membership survey conducted in August 2014 showed that, while most members joined the PartsTrader program with high hopes for increased sales to their current repair facilities and the opportunity to sell to State Farm DRP facilities they were not selling to, tabulated results demonstrated that there have been very limited incremental sales, while costs resulting for participation have increased.
Specifically, Team PRP states that the labor associated with responding to requests and completing transactions has increased for most of its members. Statistics also showed, according to Team PRP, that the amount of time required to sell a part is considerably higher with PartsTrader than with other methods, and the percentage of quotes that result in sales is substantially lower.
However, more than 70 percent of Team PRP members recognize that eProcurement in the parts ordering process is not only inevitable but, under the right conditions, would be welcomed. Team PRP said that most of its members feel they already have the technology to help drive electronic procurement through their computerized inventory systems. Also, in many situations, they’re already using such systems to source parts from each other. Extending the mechanism to external entities in a secure environment, the group states, is seen by most as the next logical step.
The reasons most Team PRP members indicated dissatisfaction with the PartsTrader program, said Team PRP, include but are not limited to:
* It does not use technology properly to fully automate the search process
* It does not filter out parts inappropriate for auto recyclers
* It does not include sufficient part detail to allow proper part identification. The details most mentioned as lacking, according to the survey, include production dates, vehicle mileage, a more effective VIN decoder, better part descriptions and digital images of the damaged vehicle
* It does not make it mandatory that the request include Hollander interchange, the cataloguing method used by virtually all auto recyclers in the U.S.
* Its process is too slow and inefficient
* It does not provide efficient reporting tools recyclers can use to measure results
* It does not include effective means of communication between the parties
Team PRP states that its research has shown that competing eProcurement programs are being developed and will soon be introduced by other industry providers. In its commitment to promote as many effective sales opportunities for its members as possible, Team PRP says it will research these new offerings and will recommend to its members participation in those programs that can provide better results than what is currently in the market.
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