e2e Total Loss Vehicle Management responds to the 2023 ABP Club State of the UK Body Repair Industry Report
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.”
Silverlake Automotive Recycling responds to the 2023 ABP Club State of the Body Repair Industry Report
The 2023 ABP Club State of the Body Repair Industry Report provides invaluable insights into bodyshop attitudes to, and use of, reclaimed parts. It is encouraging to see that 78% of bodyshops are using reclaimed parts and that 67% confirmed their use of reclaimed parts had increased in the last year. The 2022 ABP Report findings were similar, citing 79% use and 74% increased use over the 12-month period; suggesting the market has maintained its position and potentially experienced some plateauing.
Our experience at Silverlake Automotive Recycling [Silverlake] has been very different. In the 12 months November 2022 to October 2023, we have seen a 596% increase in sales of our reclaimed parts and a 535% increase in active bodyshop customers. We were proud to be awarded Recycled Vehicle Parts Supplier of the year at the ATF Professional Vehicle Recycling Awards in November 2023 and we believe our success story can be attributed to our partnership approach with our bodyshop customers.
Over half of the bodyshops responding to the ABP Report saw parts availability as a significant or huge threat to their business over the next 12 months, with the leading drivers for reclaimed parts usage cited as 77% when the new part is no longer available and 76% when the new part is not available in a reasonable time scale. Bodyshops also reported the detrimental effect that price rises on new parts are having on their businesses. Yet, reclaimed parts, which can realise savings of between 35 – 50% on RRP of new OEM parts, make up an average of only 2.5% of total parts volumes. Seeking to understand why more reclaimed parts are not being fitted, inconsistent quality tops the list at 59%, followed by the requirement for too much rectification work at 49% and poor availability at 44%. If you combine the 33% of respondents citing poor quality with the 59% citing inconsistent quality you hit 92% with quality issues.
Silverlake is ISO 9001,14001 and 27001 aaccredited and certified by the Vehicle Recyclers’ Association [VRA] to the UK Standard for Reclaimed Parts, meaning our parts are quality graded, warranty assured and come with full provenance history. Bodyshops buying their parts from uncertified suppliers are gambling on quality. However, whilst that VRA industry certification is awarded following a robust audit, Silverlake recognised that to build further confidence and trust in the quality of our product with our bodyshop customers, we needed to go one step further. As part of our partnership approach we invest in ongoing inhouse and inter-company cross training with bodyshop customers, to understand how their business works, to demonstrate how we work as an automotive recycler and to establish best practice for supply of parts tailored to their needs. 2024 will also see us introduce job swap opportunities to the mix to help with further in-depth familiarisation.
Good communication and expectation management is also pivotal. Many of our bodyshop customers are prepared to take a panel from Silverlake that requires rectification – for example a damaged Grade B & C panel under the VRA grading scheme – rather than wait for a pristine Grade A panel, in order to reduce critical key-to-key time. This is because we clearly communicate the panel damage in advance, so they know exactly what to expect and can factor in rectification works when making their buying decision. Our partnership approach to pricing ensures the damage is reflected in the price, helping a better supply of panels.
Addressing concerns about poor availability, we apply bespoke analytics to inhouse and market data ensuring we buy the right vehicles/models for dismantling, in order to meet the parts needs of our bodyshop customers. Our 1000 m2 panel warehouse stores in excess of 6,000 panels and 50,000 online parts which are continually restocked, supporting ongoing fulfilment as we supply increasing volumes. We are also proud to be members of the e2e Total Loss Vehicle Management network, affording our customers access to a further 500,000 quality graded, warranty assured and provenance tested reclaimed parts, contained within a growing network of quality assured partners. We understand the impact of parts delays on bodyshops and Silverlake parts are delivered within two working days, nationwide and by our own delivery fleet to ensure no damage occurs during transit.
It is rewarding as an industry to see that policyholder resistance to reclaimed parts has fallen 7% in the last 12 months, from 44% in 2022 to 37% in 2023. Time and effort has been invested by insurers, bodyshops and automotive recyclers in reassuring and educating consumers on the benefits of reclaimed parts and this will need to continue in 2024.
27% of bodyshops cited work provider resistance as a reason for not using or increasing their use of reclaimed parts, whilst 61% report they fit reclaimed parts at the request of the work provider and 39% to avoid a total loss at the request of the work provider. Insurers remain at different stages in their journey of adopting a reclaimed parts strategy, with some still only using the cost effectiveness of the parts to avoid a total loss claim. Wholescale adoption of a reclaimed parts solution across the entirety of a motor insurer’s book of business is not yet standard practice. We are hopeful for more consistency and clarity across work provider instructions in 2024 as the market matures further and the cost savings, productivity gains, shortened motor claims life cycles, carbon reduction gains and customer experience benefits become even more compelling.
Turning standards into service excellence at Silverlake
Silverlake Automotive Recycling [Silverlake] is proud to have achieved re-certification to the ISO 27001 standard for Information Security Management Systems, ISO 9001 standard for Quality Management and ISO 14001 standard for Environmental Management.
The re-certification demonstrates the company’s commitment to best practice and professional standards in information security management, quality management and environmental management.
In addition, Silverlake has been audited and re-certified to the VRA UK Standard for Reclaimed Parts, giving customers continued confidence in the quality of its products. Reclaimed parts from Silverlake are quality graded, warranty assured and provenance tested. The company has seen 46% growth over the last 12 months with a customer base that includes, insurers, bodyshops, garages and consumers.
Commenting on the achievements, Allen Prebble, managing director at Silverlake said: “We maintain rigorous scrutiny of our processes and systems to ensure Silverlake meets the highest professional standards and delivers service excellence to our ever-increasing customer base. It is very rewarding to successfully go through these robust audits and achieve re-certification. I’d like to take the opportunity to thank my staff for their dedication in continuously meeting these standards in an operational capacity and in turn, giving our customers a service experience they trust and rely upon.”
Copart UK Achieves Carbon Literacy Gold Accreditation
Global leader in online vehicle remarketing and recycling, Copart UK, has today announced that they have achieved a Carbon Literacy Gold Accreditation, with over 50% of their workforce now certified.
The Carbon Literacy Project awards this accreditation to companies that maintain a substantial proportion of their workforce as Carbon Literate and demonstrate Carbon Literacy through their organisational behaviours. Reaching gold less than a year after achieving silver highlights Copart’s ongoing commitment to tackling climate change and reducing carbon emissions, and their determination to always act responsibly and sustainably. The company now plans to achieve platinum level and has been equipping more teammates across their business to help deliver training both internally and out to the wider industry.
Jane Pocock, CEO of Copart UK & Ireland, said:
“We’re delighted to announce that over half of our Copart UK teammates are now certified as Carbon Literate. “It’s been wonderful to see such high levels of engagement across our business and there’s been a real shift in awareness and behaviours when it comes to always thinking green in everything we do. “We’re now making excellent progress towards our next goal of achieving platinum level, where we’ll be delivering training to 80% of our workforce and promoting positive action against climate change by further extending our ESG commitment out to our supplier chain.” Copart said that their ongoing carbon literacy journey is just one aspect of their ‘Plan-Net-Zero’, which also includes the ‘Greenest Fleet on the Street’, the setting of science-based targets (SBTi), and the continued expansion of their UK recycling and green parts capabilities. This was most recently boosted by their newly-acquired The Green Parts Specialists brand, which enables Copart to offer an unbeatable set of integrated green parts and salvage solutions to all of their customers.
One night, three industry awards for Silverlake Automotive Recycling
Silverlake Automotive Recycling [Silverlake] won a trio of industry awards at the ATF Professional Vehicle Recycling Awards, held on November 9th at the British Motor Museum in Warwickshire. Judges of the national awards determined Silverlake leading the field in the Recycled Vehicle Parts Supplier Award and Salvage Company Award and recognised the company’s commitment to local community as winner of the Community Impact Award.
Silverlake’s commitment to making reclaimed parts accessible to all, supported its Recycled Vehicle Parts Supplier award win. The company has a customer centric, dual-service strategy to prioritise customer satisfaction. Its ‘full-service’ offering sees it provide vehicle parts dismantled, quality graded and supplied with full provenance history and warranty, aligned with its VRA Certification to the UK Standard for Reclaimed Parts; over the counter, online and by phone, and via eBay representing the worldwide market. Silverlake’s ‘self-service’ offering enables customers to safely dismantle their own parts from 350 breakers, updated daily, at its U-Pick-It Yard in Southampton.
The Salvage Company Award recognised the innovation Silverlake applies to its UK-wide operations which sees the business process 35,000+ salvage vehicles a year. Salvage cars are sourced from B2B clients including insurers, garages and dealers, and B2C customers who can get a rapid quote by phone or the website. In-house data analytics and market research informs the vehicle buying team and, together with an engineering assessment, determines whether a salvage vehicle is remarketed on the company’s online auction or processed for ‘full-service’ or ‘self-service’ parts.
Silverlake invests time and resources in its regional community, helping to build pride in the brand. Winning the Community Impact Award recognises the many community initiatives supported by the business including, fundraising for community charities through its UDonateacar.com scheme; supporting local colleges and young people by supplying salvage vehicles for training courses and work experience placements; providing its site and salvage vehicles for emergency services training exercises; supporting the elderly and vulnerable in the region via sponsorship of the Blue Lamp Trust; and helping to keep the local football club at the heart of the community through its continued sponsorship of the Eastleigh Football Club stadium for the last 12 years.
Commenting on the award wins, Allen Prebble, managing director of Silverlake said: “I am over the moon for the business to have received this trio of awards, and the associated industry recognition, which reflects many years of hard work and investment. None of this would be achievable without the dedication of our awesome team of people and I am full of admiration and thanks. Our membership of the e2e network sees us, alongside all members, driving for excellence in our owner lead, independent salvage businesses, united behind common network goals. The power of that combined entrepreneurship and focus delivers unique and tangible value to e2e’s existing and prospective clients.”
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