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  Guest Editorial

It's Time

Posted 7/12/2000
By Roger J. Cadaret

OK folks, we've waited long enough to see the Internet being used in our industry for the ordering of parts and materials, for sending photo images to insurers, and to see numerous other Internet-based start-up companies offering their services to the collision repair industry. But, we still haven't yet waited long enough to be able to use one estimating system for all insurance work. What's up with that?

Yes, it's time the industry pulled itself together and agreed to use the industry standards created by the Collision Industry Electronic Commerce Association (CIECA). Nearly all of the originally planned suite of 12 standards will be completed later this year; seven are already completed and available for use. If they start planning now, the remaining standards will be available for use by the time anyone is ready to implement them. The excuses are gone!

We've talked for years about the need for standards to allow repair centers to use a single estimating system for all its insurance work. It has been estimated that the use of multiple estimating systems in the same shop costs as much as $30 additional per car repaired. So why are we still in 1994 mode? Who knows?

Well, here's my guess. Insurers are still fairly happy with what is being done, and in most cases haven't intellectually absorbed the importance of standards. (They probably don't have an internal evangelist like me to keep driving the point home.) Vendors are still enjoying what they created and waiting until a customer asks them to change. So what do we do?

Start raising hell! If you want to see standards in use that will save you money, training, time, stress, etc., then start pushing buttons. Ask your insurance partners where they stand on the use of CIECA standards. Tell them how much it means to you and how you can do a better job for them. Ask your vendors when they will be ready, and if they say “when the insurer is ready,” relay that to the insurer. There has been a lot of hand-wringing and moaning over the lack of standards since CIECA was created; if there isn't an outcry now to get them used, I will be greatly disappointed.

Remember, we have never done something like electronic commerce before; it takes two to tango! You must tell your partners your wishes and capabilities, or it will take forever for them to find out. The insurers won't spend the money unless they realize it will save them even more. The vendors won't offer standards until they know they have a market that will reward them; simple business logic! You, the shop owner, must help the insurers realize you will help save them money if they make your business cheaper and easier. Let's get out of this “You go first; No. You go first” kind of stalemate we are in. Let your wishes be known. I'll be doing what I can to help.

Cadaret Roger J. Cadaret has been executive director of CIECA since its creation. He worked at GM for 24 years before becoming an electronic commerce consultant with Ernst & Young in 1989. He formed his own company, Electronic Commerce Services, in 1992. He is both an industrial engineer and a lawyer.

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