Team PRP Can’t Endorse PartsTrader
Team PRP (Premium Recycled Parts) has announced it has fully endorsed the use of eProcurement mechanisms to automate and add efficiency to the procurement of OEM recycled auto parts, but it cannot endorse the PartsTrader program in its present configuration, the group stated.
Team PRP recently conducted an extensive survey of its members across the United States. It 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, the labor associated with responding to requests and completing transactions has increased for most Team PRP members. Compounding the increase in costs are statistics by Team PRP members showing 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.
On the positive side, over 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. Most feel that they already have the technology to help drive electronic procurement through their computerized inventory systems and that, in many situations, they are already using such systems to source parts from each other. Extending the mechanism to external entities in a secure environment is seen by most as the next logical step.
The reasons most Team PRP members indicated dissatisfaction with the PartsTrader program 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 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 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 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.