Today's salvage parts facility is not your father's junkyard, or even your older brother's boneyard. In just a few short years the used-component industry has become increasingly sophisticated and is a significant sourcing alternative for collision repairers.
In New Jersey, body shop owners belonging to State Farm's direct repair program (DRP) have been attending a series of educational sessions to learn more about the recycled parts process. The insurer's classes are held in locations accessible to the upper, middle and lower portions of the Garden State.
This year's seminars attracted 120 attendees representing 98 of State Farm's 113 New Jersey DRPs, known as Select Service Shops.
"People think of salvage yards as junkyards, and that's not the case," says State Farm Auto Estimatics Inspector Pete Fryzel. "The reason to bring everybody together is to not forget the role that recycled parts can play in the repair – people have been using recycled parts since Henry Ford."
Vehicle owners who are inclined to think green are intrigued with the concept as well.
"Using recycled parts helps reduce costs, expedites repairs in many cases, and helps reduce our carbon footprint," Fryzel says. The educational sessions "brought to light a lot of the issues around recycled parts," such as condition, shipping and return policies.
The program included I-CAR materials along with three New Jersey members of the Premium Recycled Parts Group (PRP), which is a collaboration of 17 salvage operations.
"They are a very sophisticated group," says Fryzel, "who comply with a high set of standards and focus on quality recycled parts. We advocate the shops use the PRP group because we know they're good, they price their parts correctly, their recycled parts are quality and their delivery is prompt."
According to I-CAR figures, 75 percent of the vehicles going into salvage are recyclable in some way; 75 percent of the parts do indeed get reused, 20 percent are recycled as raw materials and 5 percent are destined to be buried underground. "The goal is to reduce the amount of parts going into the landfill," Fryzel notes, adding that it is also "one of the responsibilities we have to keep costs under control."
Estimatics Team Manager Vincent Castaldo says using recycled parts is well within the realm of the "State Farm satisfaction promise to the policyholders for fit, corrosion resistance qualities, and performance for as long as the customer owns the vehicle."
"We're all concerned with the cost of repairs for our mutual customer," says Fryzel. "If our repair costs go up, premiums can potentially follow."
The salvage parts trade is the nation's 13th largest industry, amounting to $10 billion in annual sales – much of them coming from the collision repair segment. Instant messaging has greatly enhanced connectivity among the yards and their customers, Fryzel says.
"Everybody's on the same page," says seminar attendee Michael Gerstein, owner of Circle Collision Center in Old Bridge, N.J. "The key is to have a strong network to reach out to the other places in the blink of an eye. You don't want to wait a couple of days for information on your parts – you want someone to say, 'I'll get back to you in a couple of minutes.'"
"The quality (of the used parts industry) is better than it’s been in years," Gerstein continues. "It's really tremendous. If I want to see something they can get me a picture (of the part) in minutes."
Circle's customers are equally enamored because "they understand 'green,'" he says. "They want quality parts – not aftermarket parts."
Flemington Auto Body was one of the first shops in its area to make the switch to waterborne paint, and pushing the ecological aspect of salvage components – along with the associated cost savings – is among the operation's marketing plans, according to office manager Scott Shepherd.
"It's coming full-circle now, especially with this oil spill," he points out, referring to heightened customer interest in the issue. "The recycled parts are helping the environment because they're being reused."
Shepherd says that while aftermarket parts typically still lack consistency in fit, form and function, "recycled parts are OEM – it's the same thing."
Imparted at the seminars was the fact that customers need not fear that their late model vehicle will return from the shop outfitted with leftovers from a 1964 Falcon. "Your car is three years old, so it has three-year-old parts on it," says Shepherd, adding that "a lot of the recycled stuff has driven down the OE prices" for new components.
"They're really brought the recycled industry around. Within the last five years they've really gotten their act together," he says.
In the past, ordering from salvage yards "created a lot of problems and it was not something that we really wanted to do," Shepherd recalls, noting that Flemington's cycle times are now equal whether OEM or recycled parts are applied. "It's working a lot smoother now."
Providing prompt and accurate information is a particularly admirable aspect of today's recycler, according to Shepherd. "It's critical to know the condition of the part ahead of time, and they'll be honest about it instead of saying, 'We'll wait and see.'"
Citing a past incident in which a previously pristine hood arrived in a seriously bent state, Shepherd praises the refinements being made in the delivery process. "They've gotten so much better at handling the parts; they're taking better care of them and they've got the proper equipment to deliver them."
As a recent example of appreciated customer service, Shepherd tells of how a recycler brought over an entire front portion of a matching car being worked on and then removed the carcass when the job was done. "There are all kinds of crazy clips and fasteners on these things, and to have the whole nose sitting next to you is a nice way to do it."
By James E. Guyette, http://abrn.search-autoparts.com/abrn/Collision+Repair/State-Farm-New-Jersey-seminars-preach-value-of-rec/ArticleStandard/Article/detail/682111?contextCategoryId=498
Friday, August 06, 2010
Friday, July 16, 2010
Interchange: The Recycler Language We're Speaking
Like a lot of columns, this one started with a question: is there a better way for auto recyclers to inventory parts? Can we tie our system more closely to OEM numbers? And like the best questions, the answer surprised me. I’m sure there is room for improvement, but, especially compared to some international markets, we have it pretty good.
The numbering system for the auto recycling industry is derived from the original equipment manufacturer (OEM) number. It’s the basis for what is universally known as “Interchange.” While we do not speak the same numerical language as collision repairers, all stake holders in our collective industry are fortunate to have a common platform by which we can all operate.
This common platform is written and owned by Hollander, a Solera company out of Plymouth, Minnesota. The Hollander Interchange allows all auto recyclers to inventory and categorize assemblies rather than all of the components that make up an assembly. For example, auto recyclers inventory and stock a vehicle’s door as an “assembly” in that the door’s internal hardware, moulding, handle and window are part in parcel of what the customer can expect to receive. In the manufacturer’s concept, there is no OEM number for a door; there’s one for a door shell.
Part of the value in recycled parts for the collision repair industry is the opportunity to receive an original manufacture’s part like a door fully intact, thereby reducing the labour they’d expend if the door had been a bare shell. Ultimately, it reduces the cycle time of the vehicle being repaired.
As Hollander senior product manager Avi Pelc put it, the real question is “how do we give the collision repairer confidence that the part is accurate and that it is the correct used part for their vehicle?” This is the very nature of what Hollander does and they have teams of representatives who are trained to use various systems to outline this for all stake holders in our industry. As Avi explained to me, it all boils down to the premise of the Interchange itself: “fit and function.” Hollander is the creator and makes the decisions using that credo. When there are slight variations to the interchangeability of parts, Hollander provides the options for its users.
In simple terms, the benefits of Interchange are that it allows auto recyclers to search for and find parts from manufacturers that share parts components, such as Chrysler and Mitsubishi etc. When part requests are logged into various inventory management systems available to auto recyclers the Hollander Interchange is the foundation for each and every part look up. Essentially, it increases the likelihood of finding that part in the recyclers database.
Without this common platform available to recyclers the net result would be very chaotic and confusing due to the varying natures in which we operate. Recyclers have to find a middle point and not limit ourselves to the opportunities to provide collision repair centres with the parts they want and need. We may not have the part from the exact model, and the appropriate part we have available may not even come from the same type of vehicle, but that doesn’t mean the part we have isn’t applicable to the repair.
The Hollander Interchange, also known as the “Bible” for the auto recycling industry, is the reason that we are able to effectively cross reference these parts and provide them as an option in the repair process. Not long ago, auto recyclers had two forms of interchange for our industry, and this only fractured and shrunk the marketplace for parts; there were too many barriers and obstacles for us to trade parts among ourselves.
I think it is fair to say that there still needs to be improvements to the existing situation. A better exchange of information is attainable, which will aids in strengthening all stake holders in our industry.
Having said that, the common platform by which we operate today allows us to trade many tens of thousands of parts daily in an almost seamless fashion. This in itself would otherwise not be possible without Interchange. This is all because of the great work that is done behind the scenes at Hollander and a big thank you is deserved for their efforts and positive contribution to our industry.
by David Gold, Standard Auto Wreckers, Scarborough Ontario
This story originally ran in Collision Repair magazine issue 9#3. http://www.collisionrepairmag.com/news/features/13863-by-the-numbers
The numbering system for the auto recycling industry is derived from the original equipment manufacturer (OEM) number. It’s the basis for what is universally known as “Interchange.” While we do not speak the same numerical language as collision repairers, all stake holders in our collective industry are fortunate to have a common platform by which we can all operate.
This common platform is written and owned by Hollander, a Solera company out of Plymouth, Minnesota. The Hollander Interchange allows all auto recyclers to inventory and categorize assemblies rather than all of the components that make up an assembly. For example, auto recyclers inventory and stock a vehicle’s door as an “assembly” in that the door’s internal hardware, moulding, handle and window are part in parcel of what the customer can expect to receive. In the manufacturer’s concept, there is no OEM number for a door; there’s one for a door shell.
Part of the value in recycled parts for the collision repair industry is the opportunity to receive an original manufacture’s part like a door fully intact, thereby reducing the labour they’d expend if the door had been a bare shell. Ultimately, it reduces the cycle time of the vehicle being repaired.
As Hollander senior product manager Avi Pelc put it, the real question is “how do we give the collision repairer confidence that the part is accurate and that it is the correct used part for their vehicle?” This is the very nature of what Hollander does and they have teams of representatives who are trained to use various systems to outline this for all stake holders in our industry. As Avi explained to me, it all boils down to the premise of the Interchange itself: “fit and function.” Hollander is the creator and makes the decisions using that credo. When there are slight variations to the interchangeability of parts, Hollander provides the options for its users.
In simple terms, the benefits of Interchange are that it allows auto recyclers to search for and find parts from manufacturers that share parts components, such as Chrysler and Mitsubishi etc. When part requests are logged into various inventory management systems available to auto recyclers the Hollander Interchange is the foundation for each and every part look up. Essentially, it increases the likelihood of finding that part in the recyclers database.
Without this common platform available to recyclers the net result would be very chaotic and confusing due to the varying natures in which we operate. Recyclers have to find a middle point and not limit ourselves to the opportunities to provide collision repair centres with the parts they want and need. We may not have the part from the exact model, and the appropriate part we have available may not even come from the same type of vehicle, but that doesn’t mean the part we have isn’t applicable to the repair.
The Hollander Interchange, also known as the “Bible” for the auto recycling industry, is the reason that we are able to effectively cross reference these parts and provide them as an option in the repair process. Not long ago, auto recyclers had two forms of interchange for our industry, and this only fractured and shrunk the marketplace for parts; there were too many barriers and obstacles for us to trade parts among ourselves.
I think it is fair to say that there still needs to be improvements to the existing situation. A better exchange of information is attainable, which will aids in strengthening all stake holders in our industry.
Having said that, the common platform by which we operate today allows us to trade many tens of thousands of parts daily in an almost seamless fashion. This in itself would otherwise not be possible without Interchange. This is all because of the great work that is done behind the scenes at Hollander and a big thank you is deserved for their efforts and positive contribution to our industry.
by David Gold, Standard Auto Wreckers, Scarborough Ontario
This story originally ran in Collision Repair magazine issue 9#3. http://www.collisionrepairmag.com/news/features/13863-by-the-numbers
Save some money and help the planet by buying recycled auto parts
You see a car being towed from an accident and think it’s destined to become an environmentally unfriendly pile of rusting junk? Think again. It’s actually a source of reusable parts that can easily offer years of service to another motorist.
In fact, auto recycling is the ultimate environmental choice. No other product on earth is recycled to a greater degree than the automobile. Not only does it keep a flood of dangerous toxins from being released into our ground and water, it prevents unnecessary use of valuable landfill space. And by reducing the need for new parts to be manufactured, you’ll be preserving scarce natural resources and cutting down on pollution.
As an example, take a look at the top 15 automotive parts searched for via Car-Part.com, the search engine that powers the Ontario Auto Recyclers’ Association web site (found by clicking on “Find Green Parts Now” at www.oara.com):
1. Engine assemblies
2. Transmission/transaxle assemblies
3. Wheels
4. Headlamp assemblies
5. Front Bumper assemblies
6. Front Door assemblies
7. Fenders
8. Hoods
9. Side view Mirrors
10. Tail lamps
11. Rear Bumper assemblies
12. Decklids/Tailgates
13. Air Bags
14. Electronic Engine Control Modules
15. Rear Door assemblies
Also, the average price for a used part in good working order is about half the cost of a new one. When it comes to an engine assembly or transmission assembly worth more than $1,000, the savings can truly add up.
And, you can rest assured that the part you’re looking for is top standard. OARA auto recyclers ensure the quality and reliability of the parts they sell. During the dismantling process, every part is inspected and tested so only those that meet strict guidelines and tolerances are offered for resale. Some parts, such as engines and transmissions, may be remanufactured while other parts, such as lights and wheels, may be reconditioned.
As parts are inventoried, the model year and mileage of the vehicle they came from are recorded to provide information about the condition of the part you're purchasing.
One thing to keep in mind – many recycled parts remain attached to their vehicle until the part is sold, so you may have to wait—typically just a day or two—before you actually get your part.
To find a recycling centre near you visit www.gogreenparts.ca.
In fact, auto recycling is the ultimate environmental choice. No other product on earth is recycled to a greater degree than the automobile. Not only does it keep a flood of dangerous toxins from being released into our ground and water, it prevents unnecessary use of valuable landfill space. And by reducing the need for new parts to be manufactured, you’ll be preserving scarce natural resources and cutting down on pollution.
As an example, take a look at the top 15 automotive parts searched for via Car-Part.com, the search engine that powers the Ontario Auto Recyclers’ Association web site (found by clicking on “Find Green Parts Now” at www.oara.com):
1. Engine assemblies
2. Transmission/transaxle assemblies
3. Wheels
4. Headlamp assemblies
5. Front Bumper assemblies
6. Front Door assemblies
7. Fenders
8. Hoods
9. Side view Mirrors
10. Tail lamps
11. Rear Bumper assemblies
12. Decklids/Tailgates
13. Air Bags
14. Electronic Engine Control Modules
15. Rear Door assemblies
Also, the average price for a used part in good working order is about half the cost of a new one. When it comes to an engine assembly or transmission assembly worth more than $1,000, the savings can truly add up.
And, you can rest assured that the part you’re looking for is top standard. OARA auto recyclers ensure the quality and reliability of the parts they sell. During the dismantling process, every part is inspected and tested so only those that meet strict guidelines and tolerances are offered for resale. Some parts, such as engines and transmissions, may be remanufactured while other parts, such as lights and wheels, may be reconditioned.
As parts are inventoried, the model year and mileage of the vehicle they came from are recorded to provide information about the condition of the part you're purchasing.
One thing to keep in mind – many recycled parts remain attached to their vehicle until the part is sold, so you may have to wait—typically just a day or two—before you actually get your part.
To find a recycling centre near you visit www.gogreenparts.ca.
Thursday, July 15, 2010
Wednesday, July 07, 2010
Auto Recycling - The last road trip
The largest piece of refuse you will probably ever throw away is your car. Every year, half a million vehicles are taken off Ontario roads as a result of age or collision damage and sent to auto dismantlers. In most cases, 75 percent of a car’s parts can be recycled; the remainder (mostly plastics, but can also contain mercury and liquid freon from air conditioners) ends up in a landfill. Because no single agency is responsible for monitoring end-of-life vehicle (ELV) dismantling practices in Ontario, it is impossible to determine how much hazardous material from rusting auto parts is released into the air or seeps into the ground and waterways.
Says Steve Fletcher, executive director of the Ontario Automotive Recyclers Association (OARA), “When you consider the numbers – 500,000 cars times five tires, one battery, two or three mercury switches, litres of various toxic fluids – it’s overwhelming to think of the potential environmental impact of handing over cars to auto dismantlers that simply strip what they want and throw the rest in a crusher.”
The OARA and its 135 member organizations, which make up only a fraction of the thousands of selfdescribed auto dismantlers in Ontario, adhere to a strict code of conduct regarding the treatment of ELVs and reuse or recycle every possible component of a vehicle. “By reusing salvageable parts,” says Fletcher, “you’re providing the customer with a good part for half the price and avoiding having to exploit resources to build the part again from scratch.”
OARA members are attempting to give an industry associated with junkyard landscapes, guard dogs and cigar-smoking toughs a green makeover. David Gold owns and operates Standard Auto Wreckers with his father, Ken. Gold thinks that the environmental impact of ELVs could be lessened considerably by creating an industry standard that all auto dismantlers would have to follow. “The treatment of hazardous fluids throughout much of the industry is an abomination. We use a state-of-theart fluid separation device that drains all fluids from the car so that they can be reused.” Gold, whose company provides customers with a certificate to show that their car has been recycled in full, knows that until legislation is passed regarding the treatment of ELVs, responsibility falls on the public to take a cradle-to-the-grave approach to owning a car. “We’re around, but because our overhead is higher [due to the fluid separation equipment and processes] we can’t always pay what junkyards can for ELVs. We need people to think with their heads instead of their wallets.”
by Jim MacInnis
http://www.ontarionature.org/onnature/earthwatch.html#7
Says Steve Fletcher, executive director of the Ontario Automotive Recyclers Association (OARA), “When you consider the numbers – 500,000 cars times five tires, one battery, two or three mercury switches, litres of various toxic fluids – it’s overwhelming to think of the potential environmental impact of handing over cars to auto dismantlers that simply strip what they want and throw the rest in a crusher.”
The OARA and its 135 member organizations, which make up only a fraction of the thousands of selfdescribed auto dismantlers in Ontario, adhere to a strict code of conduct regarding the treatment of ELVs and reuse or recycle every possible component of a vehicle. “By reusing salvageable parts,” says Fletcher, “you’re providing the customer with a good part for half the price and avoiding having to exploit resources to build the part again from scratch.”
OARA members are attempting to give an industry associated with junkyard landscapes, guard dogs and cigar-smoking toughs a green makeover. David Gold owns and operates Standard Auto Wreckers with his father, Ken. Gold thinks that the environmental impact of ELVs could be lessened considerably by creating an industry standard that all auto dismantlers would have to follow. “The treatment of hazardous fluids throughout much of the industry is an abomination. We use a state-of-theart fluid separation device that drains all fluids from the car so that they can be reused.” Gold, whose company provides customers with a certificate to show that their car has been recycled in full, knows that until legislation is passed regarding the treatment of ELVs, responsibility falls on the public to take a cradle-to-the-grave approach to owning a car. “We’re around, but because our overhead is higher [due to the fluid separation equipment and processes] we can’t always pay what junkyards can for ELVs. We need people to think with their heads instead of their wallets.”
by Jim MacInnis
http://www.ontarionature.org/onnature/earthwatch.html#7
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