Follow Up to SCRS Information Session in Vegas

Here is an excerpt from Wendy Hillier is the Vice President, Supply Chain and Procurement for Intact Financial Corporation, in response to comments made by John Norris, the Canadian expert presenting to the SCRS meeting in Vegas this week.

“Labour rates are not a component of our parts program and Mr. Norris’ reference to labour rates is incorrect,”said Hillier “With any program supported by software, there are fees associated with its use. The fees charged are fully disclosed to both shops and parts suppliers in advance of their participation.

“Intact’s parts procurement program is focused on the acquisition of quality parts as an essential component in repairing our customers vehicles in a safe and timely manner. The program supports our Rely shops in reducing cycle time and improving the overall cost of repairs. In 2012, the program provided parts availability and pricing through a single portal in less than 30 minutes. Shops were able to make a choice on parts ordering in less than an hour of the vehicle arriving at their shop.  Parts are then delivered according to the availability as specified by the supplier.  Returned parts (due to incorrect part selection or quality of part) have historically been over 15 percent.  Our parts program has reduced the rate of return to under 10 percent.

The improved cycle time around ordering repair parts, receiving the parts and the reduction of parts returns deliver value to various stakeholders in the process. Our policyholder benefits through improved repair cycle times, the shop benefits from reduced wait time and  delays in the repair process, and the parts suppliers benefit from a competitive opportunity to bid on the sale of their parts.”

As I indicated in my earlier post, Intac Insurance is predominantly a Quebec based company with French Canadian sensibilities making it quite unique in the Canadian landscape.  To suggest that Canada is running down the path that Intac is following is likely an overstatement and I will be meeting with some pretty senior industry folks this week to gain further insight into Mr. Norris’ claims.  Unfortunately, this is looking like a stacked forum presenting a one sided and not altogether accurate picture of what is really going on out there.