The following interview was held with Dan Chesney (Commercial Director) and Sean Harper (Supply Chain Manager) from S&G Response. The NBRA was very keen to learn why S&G Response believed there was a benefit to regularly reviewing repairer terms and being brave enough to make a case for change.

Of course we would always like more for our members – but the NBRA has to applaud S&G for doing what our survey proves very few work providers are willing to do and that is have difficult conversations with Principles about terms knowing that it will make you appear less competitive initially. It needs a strong business case and conviction. Fortunately, S&G recognise that a safe, fairly rewarded network is something that can’t be compromised on. NBRA look forward to working with S&G on informing their review methodology and hopefully reporting more good news to the market. If any insurers or work providers need help making a case for change internally within their businesses or with Partners the NBRA will provide their full support! Chris Weeks (Director-NBRA)

Following significant business wins in both the insurer and fleet markets, S&G Response continue to increase their presence in the UK vehicle repairer market. NBRA have had feedback that S&G Response continually review their network proposition and actively engage with partners to ensure a fair deal for all stakeholders. This has resulted in the 2019 market review;  but what has prompted this review? –

Dan Chesney – The reality is, that whilst repair costs can be controlled, they will through basic economic pressures always go up. This is compounded in the current climate by the increased complexity of vehicle repair through technology, and reduced capacity in the market. As such to ensure that we deliver a sustainable and scalable proposition to both work providers and repairers, we need to review the terms offered to both on an annual basis. We are fortunate in that S&G have been held in high esteem and have been incredibly well supported by our network and we remain keen to reward this loyalty with terms that are as competitive and profitable as possible. These things are not easy to achieve, but we felt that it made real sense to try and reward our network as appropriately as possible for their work. Yes we had to make a strong case for this to our partners, but they see the value of a strong, valued, sustainable network and were rightly confident that it would benefit their customers and ultimately strengthen their own businesses too.

With what regularity do S&G review their network terms?

Dan Chesney – The reality is we work with our principals to determine the terms we are able to offer to the network on any individual contract. Calling out the elephant in the room, there is an innate conflict between the interests of those requiring the vehicles to be repaired (cost control), and those repairing vehicles. Our role is to bring economies of scale into play which work to bridge that gap. As a matter of fact we are keen to work with the NBRA and other industry bodies (we are a platinum sponsor of Autoraise) to obtain a transparent unbiased understanding of the uncontrollable inflationary costs. We are keen to collaborate over a methodology that would set the standard for review of terms. We feel it is essential that our network understand we take this positive stance. However, it is really important to point out that terms are not the whole story – how we treat our network is just as important and we have a genuine willingness to beat everyone else in this respect.

What are you hoping to achieve by reviewing terms?

Sean Harper – In an industry where supply and demand ebb and flows it is important to always be a highly relevant partner. We have to be competitive but that must never ever compromise quality, safe repairs. You can’t cost cut your way to a long-term relationship -we absolutely will insist our repairers get a fair amount for a professional repair. We also believe that by offering competitive terms our work will remain favoured, so our partners get great service.

In the process of giving your contract a review, to what degree do you consult your network?

Sean Harper – We have a number of high-volume repairers with whom we consult and take a temperature check of the market all of the time. We listen intently and have consequently built up significant  reciprocal trust.

What in your view has been the broad response to these changes?

Sean Harper – The response has been very positive, supporting our network; listening to them and trying to do the right thing even when it is hard. I do want us to stay ahead of the pack – but if anyone out there thinks sticking your head in the sand is a good idea when repairers are absorbing increased costs, then that is not a long term sustainable partnership.

In your view, how do you see S&G customers benefitting from improved terms?

Sean Harper – We have a number of high-volume repairers with whom we consult and take a temperature check of the market all of the time. We listen intently and have consequently built up significant  reciprocal trust.

What in your view has been the broad response to these changes?

Sean Harper – The response has been very positive, supporting our network; listening to them and trying to do the right thing even when it is hard. I do want us to stay ahead of the pack – but if anyone out there thinks sticking your head in the sand is a good idea when repairers are absorbing increased costs, then that is not a long term sustainable partnership.

In your view, how do you see S&G customers benefitting from improved terms?

Dan Chesney – We have already seen an increased level of goodwill, certainly from those repairers who are really in control of their businesses and see people ready to take a chance on their behalf. We have moved up the queue, key performance indicators have improved, key to key times are reduced and crucially an improved customer journey. Behind it all though we ask and expect that all customers are treated exactly the same and with the same level of performance and care.

Do you think improving repairer terms will overall positively affect S&G repairer attractiveness?

Dan Chesney – Yes.

How difficult is it to present a business case for change in S&G? 

Dan Chesney – We challenge ourselves internally on what’s right and what’s wrong and where our partners can gain competitive advantage. We have to explain the strengths and weaknesses of certain decisions, but invariably people understand the commercial reality and see the case for change. We have turned down numerous  opportunities that would only offer terms that would be unacceptable to our network and would result in poor service. We absolutely won’t say yes to everything.