DRP (Auto Repair Factory Direct Repair Project) Can Build Contract Trust between Insurance Companies and Repair Shops?

DRP (dircet repairprogram) direct repair program of the auto repair factory recently drew a lot of heat in the country, before the North American 51% DRP market share of the flag, followed by a Chinese chaotic aftermarket, in the middle is eager to find down compensation Breakthrough of the insurance company.
Under the Internet, information asymmetry will be reduced, which will inevitably lead to efficiency revolutions and release huge dividends. Yes, the direction is right. Everyone goes forward courageously and Xiaobian is in the ranks. And stop thinking, whether successful cases in North America can be cured by Chinese medicine? It seems that when the Communist International hoped to copy the successful cases of the Soviet Union to China as a whole, the DRP will come to China and will also face dissatisfaction. Perhaps, DRP is only a drug lead, and the main drug still needs to find it.
The essence of DRP is an insurance contract between the insurance company and the repair shop. Under the contract, the insurance company grants the repair damage allowance to the repair shop. The repair shop is no longer unreasonable. However, the prerequisite for the performance of the contract is to maintain profit, reflected in the maintenance volume and a reasonable rate of profit.
Xiao Bian said that DRP is "drug cited", indicating that "pharmacy" is there, but in China's domestic environment, the need to match with other "formula" will play a greater role.
There are the following aspects to consider: First, in China, DRP's "pharmacy" will be weakened (1) sales and after-sales bundling of the 4S shop model, and the resulting variant descendants "send repair premiums", parasites in the insured Some of the repairs were carried out. Usually the rate of repairs by the three oldest companies reached more than 50%, and the insurance companies of small and medium-sized companies were slightly lower.
(2) The boundaries between the North American auto repair shop and the accident car repair shop are clearly defined. The accident car repair shop basically relies on the insurance company to eat. Obedience is the premise. When a younger brother also recognizes it, the repair shop in China, the machine repair, maintenance, and the used car Dudugan, together with the insurance company's choice of repair shop partners, is often exclusive, resulting in the cooperation between the repair shop and a single insurance company is only icing on the cake, can not reach the level of dependence.
Xiao Bian visited several repair shops that had in-depth cooperation with a third old insurance company. The proportion of insurance drainage was said to be no more than 10%. The insurance companies also required quite a lot of food, tasteless and discarded, which unfortunately caused the insurance companies to weaken the influence of the repair shop.
Second, the maintenance of the plant life is a bit biased, most of the profit margin is not artificial, and the difference obtained through the accessories is fundamental (a rough estimate, can account for as much as 80%) here include see light, such as the insurance company to provide accessories management The fee is generally about 15%, far from satisfying the appetite of 35% of the gross profits of the repair shop, and the rest is the gray zone that cannot be seen. The main reason is to play tricks on accessories to make the difference, so only through the DRP to restrain, do not restrict the parts supply chain , it may squeeze the problem to the accessory end, so the actual effect is not ideal.
Here is another name, direct supply of insurance accessories, is the direct purchase of accessories by the insurance company, the repair shop is responsible for the installation and maintenance and through the accessories management fee to make up for the loss of profits, Xiaobian boldly from the English name DPP (Direct Purchase Parts). DPP squeezed the profit of accessories, but because it was not a partnership, it could not give repair shops more repairs, so the acceptance of repair shops was relatively low. DRP solves this problem and provides the basis for DPP. In fact, some insurance companies in the United States with the DRP model are also restricting the procurement of accessories for cooperative maintenance plants.
Third, the "pharmacy shop" is too chaotic, auto parts city is unclear to the United States unclear things are difficult to distinguish the accessories market, poor quality accessories rampant, want to spend real prices to buy good medicine, it is difficult. In addition, it is in the normative nature, even the types of drugs are indistinguishable.
Model database and parts database are long-standing barriers in the spare parts market, and they are also the major obstacles to the interconnection of all parties involved in insurance companies, repair shops, and parts suppliers. The basic data problem cannot be solved, and the rest of the issues have become paperless.
In summary , Xiao Bian thinks that DRP is a deputy "good medicine", but the "pharmaceutical effect" in China is limited, there is a need to send repair flow before, after the parts supply chain, the bottom of the data.
In front of the concentration of multiple insurance company traffic, to improve efficacy, although difficult, but the way is right; parts supply chain can use accessories e-commerce platform, benefit from the development of the Internet, China has emerged a large number of large-scale, standardized Accessories e-commerce platform; the underlying data market has a number of more mature suppliers.
In this way, through a set of systems linking the insurance company claims system, repair shop ERP system, and accessories e-commerce providers to form a DRP+DPP combination medication, I believe there is sufficient efficacy.
From this point of view, the "transparent car repair" project jointly promoted by a number of insurance companies in the industries that Xiaobian is concerned about should be the DRP+DPP model that is currently the fastest and most suitable for Chinese characteristics.
The "Clear Car Repair" platform uses the Jingyou database. On the one hand, it concentrates a number of insurance companies to provide repair resources for the drainage of the cooperative workshops. On the other hand, it connects with a number of accessories e-commerce companies to form an accessory supply chain. The number of insurance companies participating in this project has reached eight, and professional third-party companies are responsible for day-to-day operations. After one year's exploration, â€œTransparent Car Repairâ€ has been formed in version 2.0, and will be promoted in pilot projects in some provinces and cities in August. .

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