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Letter to the Editor

RAC's Adoption of Glass's eSalvage Results in Significant Savings for RAC

RAC's Accident Services is currently piloting Glass's eSalvage system and is experiencing increases in excess of 50 percent of the value achieved on sales of salvaged vehicles.

Glass's eSalvage is an internet-based salvage disposal service designed by Glass's in association with Alternative Business Solutions Ltd (ABS) to facilitate the disposal of total loss vehicles. eSalvage allows registered salvage buyers to view and bid for vehicles without leaving the office and this flexible approach enables it to match the requirements of all organisations involved in the disposal of salvage.

All of the salvage dealers that are part of the eSalvage network have passed a rigorous vetting procedure, including a personal visit from a member of the eSalvage team. All dealers carry the correct licences and hold both public liability insurance, stock liability insurance.

The eSalvage service is sophisticated yet simple to use - RAC simply loads images and descriptions of its salvage vehicles on to the eSalvage web site and dealers can then select and bid on-screen.

The RAC pilot has been up and running since October 1, 2000 and RAC Accident Services Operations Manager, David Gates is delighted with the preliminary results. He comments, "eSalvage is just what we were looking for. It does what it promised to do, increasing the return for our customers from salvage and helping us to improve our backroom administration procedures and storage charges.

"eSalvage has helped us to achieve much better returns on the cars we're selling for salvage. Since adopting the system we have consistently received prices in excess of our engineers' estimates with an average increase of approximately 50 percent. In the past our salvage was sold via our engineers, all of whom were locally based and only had access to local salvage brokers. The big advantage of eSalvage is that it maximises the advantage of Internet technology - giving us immediate access to a national market without staff leaving the office."

eSalvage is a salvage administration system that is fully integrated into a web-based bidding and contract disposal service. Reduction in the time RAC Accident Services needs to spend on paperwork is resulting in significant administrative time savings.

The considerable cost savings resulting from eSalvage will ultimately help to drive down motoring costs across the industry. The RAC eSalvage pilot has focussed on self-insured fleets and has already reduced the average cost per incident. In time the RAC plans to extend its use to insured fleets and, as the insurers realise that their cost per claim is falling, there is the potential that these costs will be passed on to fleets in the form of reduced premiums. David Thacker, Glass's Manager, eSalvage', concludes, "RAC is achieving the kind of savings and efficiency benefits that many may only dream of. eSalvage really does deliver and the experience of the RAC clearly demonstrates this. We are delighted they're finding eSalvage is bringing so many business benefits. At Glass's we are committed to making every aspect of the motor claims process as easy, efficient and profitable as it possibly can be - and eSalvage makes a vital contribution to the achievement of this objective."

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