Many of the challenges facing the automotive aftermarket are larger than any one organisation, and overcoming them will require a willingness to work together that might not come naturally to ambitious and competing businesses.
That was the message from webinARC 3.9 entitled, A joined up approach, which saw panellists Michael Holding, network manager, LV=, and Andrew Walsh, founder and CEO of AW Repair Group, explain how their close partnership has reaped dividends in key areas such as technology, the environment and staffing.
But underpinning it all is communication, which has created an appreciation of each other’s challenges and priorities during difficult times.
Michael said, “We know volumes are critical for our network and we’ve been really conscious of trying to support them with that. There are challenges around staffing and parts, so communication is critical to be able offer them the right kind of support. But what we need to remember is that there is a customer at the end of every job, so we need to promote a joined-up approach between ourselves, the repairer and the policyholder.”
Technology
That is even more critical in a sector where technology is moving as such a pace that many struggle to keep up. However, by working closer with an insurer partner both parties can tackle the tech conundrum together and implement processes of standardisation that go some way to reducing the complexity of repair.
Michael said, “We are on the eve of an evolution within technology, so we need to make sure our repairers can make the right investments in technology so we can offer it back to customers.
“But the benefits for the repairer are similar to those for an insurer. For example, with sole sites you get a number of things: one customer and one process that you can trust, and by developing a close working relationship you can remove a number of the complexities that can exist when there are multiple providers feeding into a site.
“It also gives us opportunities to trial new schemes and pilots. Some work and some don’t, but they all help to create transparency, and that is what you need to reach a level where you both get what you want from the partnership.”
Environment
Another area that can’t be addressed in silos is the environment, which is an ever-growing concern for both company and consumer alike.
AW Repair Group was already considering its own sustainability strategies when its relationship with LV= enabled it to accelerate plans.
Andrew explained, ‘It is a changing landscape now and if you are a professional organisation you have to consider your environment impact. We were already looking at everything but maybe we weren’t sure exactly how to go about things. Working with Michael has been really useful in that sense and enabled us to bring everything to the fore a lot quicker.’
So much so that his group became the first in the UK to achieve the PAS 2060 standard in March this year, and Michael believes the march AW Repair Group has stolen on their rivals is both competitive and ethical.
He said, ‘All the large corporates are going to look at their supply chain and ask them what they are doing for the environment. LV= might be early adopters, but for us it is important to work with an ethical supply chain. It is important today and will be even more important tomorrow.’
To date 19 of its 25 sole sites have achieved the PAS 2060 standard.
Michael said, ‘It’s the right thing to do and it gives you a commercial advantage.’
Skills
Meanwhile, the skills shortage is also an issue that cannot be tackled alone. AW Repair Group has actually managed to open two new sites during lockdown, but Andrew admits that a lack of skills could well hamper future growth for repairers across the country.
He believes apprentices are the only logical solution and Andrew hopes a showcase event will help them find at least three more apprentices to take their 2021 intake to 15, which is the group’s annual target.
But even with this constant commitment to back-fill the group with young people, Andrew says it is impossible not to be affected by a lack of skills.
He said, ‘We are going through such a skills shortage at the moment. We have always had one, but it is really squeezing now and when there is a shortage of anything the costs will go up. So we’re going to see wages go up. All repair networks will be going through exactly the same problem but having a good relationship with your work partner makes those conversations so much easier.’
ARC360, in association with I Love Claims, is supported by corporate partners BASF, BMS, Copart, EMACS, Entegral, Enterprise Rent-a-Car, Innovation Group, Mirka, Nationwide Vehicle Recovery Assistance, S&G Response, Sherwin Williams and CAPS; partners asTech, The Green Parts Specialists, Indasa and Prasco UK.
