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Parts Purchasing and Management at the Speed of LightPosted 1/20/2000By Frank Terlep
Imagine if you could reduce repair cycle time, administrative costs and parts returns, all the while increasing customer satisfaction and sales. It sounds almost too good to be true, doesn't it? But don't rush to judgment yet. The automotive industry is quickly becoming familiar with new companies, technologies and industry standards that are delivering the above benefits and more, and at speeds never before imagined. Today, the automotive aftermarket and collision repair industry generate approximately $169 billion in revenues per year, including $48 billion from "do it yourselfers" and nearly $6 billion between vendors. That leaves about $115 billion in revenues generated by those who repair vehicles for a living. Those of you who order, receive, sell, and ship parts and supplies on a daily basis already are familiar with the highly inefficient processes that generate millions of paper-based purchase orders, invoices, credit memos and monthly statements. You also live with the results of these highly inefficient processes -increased repair cycle times, lower-than-necessary customer satisfaction, high return rates and high administrative costs. For years, repair professionals have been looking for a better way. Now, that wait is over. The rapid adoption of the Internet and newly created industry standards are changing the face of the automotive services industry. The recent rise of new "e-commerce hub" companies focused on Internet-based parts and supplies procurement solutions has created an alternative to the antiquated phone-, fax- and paper-based parts and supplies purchasing processes. And with organizations like Collision Industry Electronic Commerce Association (CIECA) establishing new standards for the way we do business on the Internet, open-standards e-commerce solutions in the collision repair industry are a certainty. The Internet is changing the way we do business. Recent surveys indicate there are more than 112 million Internet users worldwide, including 201 million in the United States and Canada. The Center for Research in Electronic Commerce states the Internet economy will be worth about $507 billion by the end of 1999; $1 trillion by the end of 2001 and an estimated $2.8 trillion by the end of 2003. Companies are tapping the power of the Internet to allow for more up-to-date and accurate data, efficient communications with vendors and cost-effective data tracking. They're arming the collision repair industry with open-standards Internet hubs that are dedicated to enabling efficient commerce between repair professionals, parts vendors, suppliers, insurers and consumers by delivering Internet technology solutions that reduce the time and cost of vehicle repairs. For example, CarStation.com's e-business applications work with multiple installed software products provided by multiple companies, and operate on open standards that are available to all participants in the automotive service process. The end result of adopting these types of Internet-based business applications will be faster and better service -and happier customers. The Internet is not just the future of our industry; it's the present. The entire automotive world is moving online, and automotive service and collision repair industries are no exception. We're fortunate to have some great companies and solid industry standards in place to help make the jump into business-to-business e-commerce a successful one. As we head into the 21st century, the future of the automotive services industry and online hubs are brighter than ever -we all stand to gain from the advances being made today.
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