State Farm Testing Electronic-Parts Ordering on Collision Repair Side—Is Glass Next?

Bloomington, Ill.-based State Farm Insurance Co. announced in late summer that in the fourth quarter it would be testing electronic-parts ordering for collision repair shops. The collision repair program is due to begin in the fourth quarter in both the San Diego and Indianapolis markets, according to an article that appeared on CollisionWeek on August 31. The company notes in the article that the main goal of the electronic-parts-ordering program is to increase efficiency and accuracy and through the test program will determine if the system gives shops "an enhanced ability to obtain quality parts that allows them to provide customers with the best combination of quality, efficiency and competitive price."

The company will test the program with "Select Service Shops" on its collision repair network, and the shops will in turn utilize suppliers that offer electronic-parts ordering options during the testing phase, according to the article. State Farm stressed to CollisionWeek that the program is a test only, not a pilot program.

According to Melissa Kern, team manager for glass claim services, this is a possibility in the future for glass as well if it proves successful—-though no plans have been made to date to incorporate this.

"State Farm does not have an immediate plan to test this program with glass shops on the Offer & Acceptance program," she says. "We will monitor this program to determine if there are applications that could be used to create greater efficiencies for the glass program in the future."

She adds that if incorporated, it would be in an effort to make its glass program run more efficiently.

"State Farm is always looking for ways to improve the glass replacement/repair claim process in order to better serve our policyholders and shared customers," she says.

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