April 2000 Editor's Page
The Good and Bad of Parts Electronic Commerce

The future role of e-commerce, as our feature article details, is one of promise. The potential for dramatic improvements in parts and materials ordering and processing efficiency may provide boosts to productivity where it is needed most- non-productive staff. Throughout the 1990s, the collision repair facility saw increasing demands upon management, estimating and customer service related to the growth of DRP and increasing customer requirements.

Increasing office staff productivity, by removing manual processing and data entry, will improve a shop’s ability to compete and produce a profit.

That promise though currently unfulfilled may come at a price. At a recent meeting of collision repairers in New York, attention was focused on e-commerce and the impact on the business of collision repair. The concerns expressed related directly to the fear that electronic parts ordering is the first step toward direct or directed parts purchasing by insurers.

Both topics have been addressed in the pages of INSIGHT at length, going back to 1993 and our coverage of USAA’s proposed direct parts purchasing program. Collision repairers made a loud and clear statement then that insurers’ involvement in the parts procurement process was neither necessary nor wanted. Repairers will need to make that statement clear again as e-commerce parts systems become reality.

Put simply, electronic parts ordering is good for collision repairers; direct or directed parts purchasing by insurers is bad.

On a more personal note, this will be my final editor’s page, as I am leaving to pursue other interests in the industry. Since joining INSIGHT in May 1993, I have had the pleasure to comment on the numerous changes affecting the industry over almost seven years and have enjoyed the on-going dialog with our readers. I wish you continued success.

(Publisher’s Note: Russell’s knowledge of the collision repair industry, in which he grew up, along with his clear and graceful writing style, have been a great combination here at INSIGHT during these past seven years. He will be greatly missed! INSIGHT wishes him all the best in his future pursuits.) o