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Green parts revolution ready for take off

More space at CARS
Is the green parts revolution here - Key2Key/RecoParts think so and they want you to be part of it.
We have said a great deal lately about green parts and the potential for this industry, and last month we mentioned a company called Key2Key that may have the solution. We’ve taken a look at what they have to offer and it all sounds good for the atf/vehicle dismantler. So, if increasing parts sales significantly interests you - read on.

Let’s take a look at the market we are talking about. There are 20,000 repairs taking place every week in the UK and the average spend for parts on a repair is £475. The average quantity of parts is eight. When a test sample of repairs were checked against dismantlers’ stock availability, on average four green parts were available for each repair. So that’s the potential this industry is looking at - 80,000 parts per week.

So how can Key2Key make this market accessible? They are at the other end of road to us; they put the systems in that the bodyshops use and their software has been designed to include green parts selection whenever the repairer is ordering. The green parts availability is handled by Key2Key’s sister company, Recoparts. So, there are two sides to this story. Firstly, you need bodyshops and insurers to be comfortable with green parts and secondly, you need vehicle dismantlers who recognise the needs of the insurers and repairers.

A key to satisfying both these needs is standards. The bodyshops are used to PAS 125 that keeps them on the straight and narrow but the dismantling industry has no such thing. PAS 125 has no problem with repairers using green parts, but there must be standards and compliance to those standards. To solve this barrier Key2Key have used the services of Prestige Certification Ltd's, Steve Wright to develop a PAS style standard for the vehicle dismantling community. This provides a robust QA system to ensure that parts are of a suitable grade, and come with an auditable provenance. This is critical to the successful take up of green parts en masse.

Key2Key / RecoPart have already carried out trials with repairers and dismantlers and, they are currently in discussions with a number of insurers and bodyshop groups. They anticipate access for green parts to 80% of repairs but cannot ‘flick the switch’ until they have the parts stocks in place. They are looking for an initial availability of 20-30,000 parts to allow the system to go live. An interesting point that has been shown from the trials carried out is that the parts required are not generally the parts that you are selling at the moment so the potential for increased sales looks extremely promising.

There is a plus point for the dismantler that we haven’t mentioned yet. The deals they are talking to insurers includes the flow of the correct salvage back to those on the system. This then completes the loop and should give the supplying atf’s access to suitable salvage.

Here at atfPro we are taking this initiative very seriously as Key2Key / RecoPart appear to have created a complete system that takes into account the issues of all parties concerned. If you’re interested in getting involved, then you can visit their website, email them or talk to Steve Wright on 07427441651.

Standards is a key part the green parts usage and Steve Wright of Prestige Certification Ltd will be involved with the CARS green parts seminar - make sure you come along.

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