Taking a Look at the Future of Auto Parts Distribution and Insurers

When SEMA was Las Vegas late in 2012, a panel discussed the nature of parts locators in other countries.  These conversations are an important part of streamlining our own processes here in the US, which is why the SCRS (Society of Collision Repair Specialists) took plenty of time analyzing the strategies seen in Canada, Australia, and New Zealand.  What was noted may impact the way auto parts find their way around North America in the coming years.


parts distribution center


Used parts make up a large majority of the marketplace in New Zealand, for example, which has impacted the mark-ups found across the board in the industry.  The introduction of PartsTrader is likely the culprit, as introduced by the insurance industry.  It should now be clear why we’re discussing such things here…


With insurance companies always looking for new ways to increase profit margins (while failing to reduce your premiums), it’s no wonder that we’re on the cusp of using similar systems here.  However, it was noted that parts quality decreased with the efforts, as the price battle resulted in less-than-regulatory parts.


What does this mean for the industry here?  With insurance companies making up a large amount of collision/repair shop revenue, we can expect similar systems in place within the next few years.  While these organizations are seeking to LEARN from the international marketplace, and ideally create a better system, only time will tell whether or not these efforts will ultimately improve efficiency and quality or hinder it…


It seems that only time will tell.


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