Using recycled parts
‘Green parts’, also known as recycled parts, used parts, salvaged parts and reclaimed parts, refer to components removed from vehicles at the end of their life which are then re-used in another vehicle, rather than being discarded.
Here at FMG we’ve been supplying safely salvaged and reusable green parts as an option to overcome industry-wide parts delays, for a little over two years, during which time we’ve been breaking down historical barriers to their use.
Our criteria is stringent. We work with some of the markets key players, such as GPS, Synetiq and Parts Exchange, all of whom have standards in place for how parts are graded and processed. We opt for bolt on/bolt off parts like panels, mirrors and door skins, and only use Grade A parts, which typically require no more than one hour’s labour, and which preserve the repair guarantee.
The supply of green parts must remain fair and equitable for all parties in the supply chain, and it must run smoothly and efficiently. At FMG we’ve automated the process, with each customers’ green parts strategy driving their repair instructions to our network of repairers so there’s no doubt around which parts are accepted by each customer. It’s an efficient process, it’s professionally managed, and it’s been something of a panacea for serious parts delays.
The cost benefits to fleets
The use of green parts offers a cost saving against RRP, yet perhaps a larger benefit is where vehicles off road have veered close to being deemed beyond economic repair. In some cases, where parts delays have stubbornly persisted, the sourcing of green parts has prevented a Total Loss decision and enabled a full and timely repair. Fleet can achieve further savings by using Green Parts to navigate vehicle off road times and the associated VOR costs.
Using Grade A parts ensures we don’t create false economies - spending more than an hour or two painting and prepping a green part would veer towards this, where labour costs could eradicate the cost saving benefits.
The operational benefits to a fleet?
FMG has a dedicated Claims Performance Team whose focus is finding practical long-term solutions to challenges like ongoing parts delays and other downtime bottlenecks. They analyse claim data to identify issues and then work closely with our repair network to create solutions to get vehicles back on the road.
The recent JLR shutdown has amplified the operational benefits of green parts among fleets who don’t usually use them, due to the shortage of available new parts in the market. We recently completed a repair on a Landrover Discovery Sport, which had been undriveable whilst awaiting a delayed front panel for 4 weeks. In our proactive search for a timely solution, we presented the customer with the option of a green part solution, as a deviation to their usual policy. They accepted, the part was sourced within 2 hours via Parts Exchange and the vehicle was back with the customer the following day.
The downtime benefits are clear to see, and the team proactively search for in-demand delayed parts to help repairers prepare in advance.
Environmental benefits
Quite simply, it always feels good to recycle and reuse materials in all areas of life, whether it’s Coke cans or car body panels. We’ve seen examples where fleet customers operate many of the same vehicle, and often deviate from the traditional salvage route when vehicles are deemed a total loss, instead storing them as ‘donor vehicles’ and creating their own ready supply of high quality green parts for future fleet incidents.
Quality control
Green Parts are graded for quality, from Grade A to D, based on their cosmetic appearance and mechanical quality, which takes the source vehicle’s mileage into consideration.
At FMG our Green Parts criteria is stringent, we only supply Grade A parts, which typically require no more than one hour’s labour to prepare for use. We insist upon parts documentation, and we don’t use green parts for any safety related items such as the vehicle’s suspension, just bolt on/bolt off parts like panels, mirrors and door skins.
Spending more than an hour or two painting and prepping a green part can veer towards a false economy situation, where labour costs eradicate the cost saving benefits of using green parts, and this must be avoided. For a similar reason we’re methodical with ordering via parts numbers, to ensure every part selected is within the correct vehicle age range.
We encourage our repair partners and parts suppliers to flag areas for improvement on quality, for example, if a Grade A part isn’t Grade A standard. We won’t compromise on quality of parts and therefore the use of green parts doesn’t change the terms of guarantee of the wider repair.
Growing interest from fleets
The level of interest from fleets is mixed but growing. Particular interest is noted in LCV fleets and Third Party Only insured fleets. Whilst the benefits of a high-quality repair and reduced downtime are obvious to a fleet manager, drivers often need more reassurance, particularly if they own the vehicle, for example through salary sacrifice.
When we present customers with a range of options, including green parts, we explain our stringent sourcing and quality criteria, and our well-established supply chain of parts suppliers and repair partners to reassure drivers of the quality of repair they’ll receive. When their car has been off road due to a parts delay, just having a delivery date for the recycled part can be the deciding factor for some customers to choose green parts.