A Kink in the Link

When it comes to global catastrophes and crises affecting an object, we all rely on every day – such as our motor vehicles – COVID and the Ukrainian Invasion are top of the list.

The acute shortages of spare parts (including new vehicles) are causing extended and prolific delays in repairs. Where once a minor repair took a week or maybe two, we now face months of waiting.

These shortages are not only affecting repairers, but also vehicle manufacturers across the globe.

A severe shortage in a product we are all well acquainted with, plastic, has hindered the production of parts such as bumpers, wing mirrors and other body parts.

COVID, although causing less panic, is still wreaking havoc to supply chains far and wide. This is especially true in China where the bulk of spare parts for vehicles are sourced. In China, lockdowns are still very much prevalent and have caused enormous disruptions in production.

But why don’t our suppliers have spare parts in stock? You may ask.

The answer lies in ‘just-in-time management’.

This is a style of management is based on the idea that goods arrive from suppliers only when needed. It worked well because it cut down on the cost of storage and an over stock of parts which there were no longer a demand for.

Where once, the ‘just-in-time management’ system worked like a fine-tuned engine, COVID and the war have highlighted this system’s vulnerability.

So where do we stand when our car must go in for a repair?

When it comes to vehicle accident management, saving time and money for one’s client while providing the best possible service is of utmost importance. But when events beyond our control affect these two key factors, how do the repairers in our Solvd Australia network cope and compensate?

After all is said and done, there is unfortunately a reality that, and this is said with all contingencies put in place, life happens and often no matter how hard we work for it not to, there may, for the next while at least, still be delays and an expected rise in costs when it comes to buying a new car, or needing a part to repair our current mode of transport.

According to a collision repair expert, some parts may arrive on time while others may take several months. Parts are not ordered until the repairer has established exactly what the damage is and what needs replacing. It’s predicted that this issue is likely to last well in to 2024 before the lag in production and the kink in the supply chain will return anywhere near pre-COVID times.

All repairers want to get you back on the road as quickly, and it must be noted, as safely as possible, as they reiterate, driveable is not safe. So, until all the obstacles slowing the supply chain are resolved and removed, we must lean on an aspect few humans know how to practice with grace these days, patience.

According to sources in the industry it is believed that claimants would have to adjust to a new normal and forgo our expectations of instant gratification. Clients will need to be prepared to accept longer repair times or new car replacement times. Unfortunately, this has a ripple effect. If your delivery van is out of action and parts are delayed, so too will your deliveries?

However, Solvd Australia does provide a solution, though temporary, for this problem, we provide hire car arrangements for any make and model. We keep all our customers in the loop as to how far their repairs are progressing and ensure that the job is done right the first time around.

There is no quick solution, unfortunately, but we believe, perhaps, a lesson learnt in an industry where time off the road costs money.

Come chat with us at the 2023 AfMA Conference and Exhibition on how we can ensure that your fleet keeps moving forward with the best accident claims management.

Booth S15 and S16

23-24 May 2023

Rosehill Gardens Racecourse Sydney

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Contact: Drew Schnehage

Managing Director Australia

[email protected]