Auto Channel 17 - SEPTEMBER 2019

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ISSUE 17 AUGUST 2019

THE VOICE OF THE NEW ZEALAND AUTOMOTIVE INDUSTRY

AUTO CHANNEL Online parts process now the new normal AUTO CHANNEL GOES BEHIND THE SCENES WITH PARTSTRADER’S STUART ROBB back in 2004 and now facilitates about 80% of parts movements in New Zealand’s light vehicle collision repair market. In 2015 the company moved into mechanical parts and that is now a strong area of growth.

CONFIDENTIAL OFFERS AND PRICES

PartsTrader general manager Stuart Robb at the hub of the network

artsTrader is now a mature online service which saw over 250,000 parts packages sent from suppliers to vehicle repairers last year. PartsTrader’s general manager Stuart Robb says there’s just over a handful of collision repairers and suppliers left who are not using the service. The company started in the collision repair industry

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PartsTrader operates much like an online auction site but, more accurately, it’s an online tender system. Repairers log a request and that is sent to member suppliers who submit confidential offers and prices. It makes it easy to see which is the best deal, not just on price, but for payment options, part condition, and delivery options. “It means the repairer doesn’t have to visit multiple different websites and manually compare prices, or make lots of phone calls wasting heaps of time. And suppliers know there is a genuine buyer when they submit their quotes,” says Stuart. “We match parts package requests from repairers with parts suppliers’ competitive quotes so they can deliver the right parts, at the right time and the right

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price,” he says. The business began in 2004 after insurance group IAG tendered for software to operate a car parts market place. The PartsTrader founders were software experts who already had experience in developing a digital tender platform. “They were able to use this expertise to assist with both process and software development,” says Stuart. The website was used exclusively by IAG repairers at first but it was soon opened up to other insurers, and for non-insurance-aligned repair work.

CHICKEN AND EGG “Creating a marketplace can be a bit chicken and egg because you need a depth of both buyers (repairers) and sellers (suppliers) on board. Buyers need a depth of suppliers for the market to be useful. Suppliers need a depth of repairers to make the effort of quoting worthwhile,” Stuart says. “IAG’s involvement spurred a critical mass of activity, ensuring that sufficient participants adopted the new system. Once on board the ease and convenience of the system convinced

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