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Trying to Understand State Farm’s Parts Trader Procurement Program Part IX

HomeNewsTrying to Understand State Farm’s Parts Trader Procurement Program Part IX

State Farm

I’ve had to weigh whether using PartsTrader is something to be concerned about. Is the implementation of a parts search tool my biggest worry, or do I have bigger fish to fry in my operation? It’s out of my control. It’s something that I have to learn to deal with. We’ve tried to figure out how we can use PartsTrader to improve. I’m not afraid of it knowing what I know now.

There hasn’t been much downside for us. I don’t see it as a bad thing if a system like PartsTrader became the industry standard, as long as all insurers used a uniform platform. I could see where this would be good if all insurance companies used one standard.

Following is how the program works, exactly. Deciding if something will work for you, needs to come from information that is easy to understand and can be broken down into manageable pieces. Hopefully, these interviews have helped.

THE PROGRAM

Since State Farm launched the PartsTrader pilot in April 2012, it has been rolled out in five U.S. test markets—Tucson, Ariz.; Birmingham, Ala.; Grand Rapids, Mich.; Charlotte, N.C.; and Chicago. To date, roughly 600 State Farm Select Service shops, or 6 percent of the 10,300 Select Service shops across the country, participate with the pilot. More than 600 parts dealers also participate throughout the five test markets to process about 3,000 weekly orders.

PartsTrader is an electronic parts sourcing, quoting and ordering platform for the collision repair industry. The program requires shops affiliated with State Farm’s Select Service direct repair network to source parts from suppliers using the Web-based price-quoting forum. Repairers submit parts needed for jobs through PartsTrader, and vendors have a certain period of time to respond with price quotes.

Todd Sudeck

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