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Thursday, 24 May 2012 16:25

State Farm Issues Damage Control Video

State Farm video aims to address ‘misinformation’ on parts program for DRP shops

State Farm distributed a video to its Select Service shops to “clear up some misinformation” about its electronic parts ordering system that it introduced in four U.S. markets.

Claims Consultant George Avery acknowledges that initial reaction to the program has not been positive. But he also defends the company saying “We recognize that no effort will succeed if there aren’t wins for all involved. A healthy, profitable repair industry it important to State Farm and our mutual customers who entrust their vehicle(s) to you for quality, safe and efficient repairs every day.”

State Farm’s new program has been criticized by repairers, The Society of Collision Repair Specialists, the Alliance of Automotive Service Providers, and other suppliers.
In the video, Avery says, “Our company’s reputation was built on fairness and square dealing, and we take issue wit the way some in the industry have portrayed our organization.”

Here is the transcript of the in the 3 minute 41 second video, which State Farm released to the media:

As we discussed in previous videos, State Farm is working with PartsTrader on the development of an electronic parts ordering application. Recently, usability testing with repairers and their suppliers was completed as well as field testing in a couple of locations, which have led to enhancements to the application.

Within the past few weeks, we have initiated pilots in a few markets and are receiving feedback from suppliers and members of Select Service Network who are participating.

We acknowledge the significant change this represents to the repair industry, and frankly, reaction from a few in the industry has not been positive. We want you to know that we are committed to working through these changes with our network in a collaborative and constructive way.

From the beginning of this effort, we have remained focused on creating a more efficient and transparent part procurement process. And we have a responsibility to our policyholders to ensure effective oversight of their premium dollars.

We recognize that no effort will succeed if there aren’t wins for all involved.

A healthy, profitable repair industry is important to State Farm and our mutual customers who entrust their vehicle(s) to you for quality, safe and efficient repairs every day.

Our company’s reputation was built on fairness and square dealing, and we take issue with the way some in the industry have portrayed our organization.

 

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