Success Stories

PT Asuransi Harta reduces repair costs and achieves direct parts procurement strategy with Merimen

PT Asuransi Harta reduces repair costs and achieves direct parts procurement strategy with Merimen

“We started this project with a clear goal to achieve quality repairs for customers at a fair price. We are proud to partner Merimen to fulfil the process digitally, and realise our vision.”

Sutjianta

Director, PT Asuransi Harta Aman Pratama

 

Key Highlights


Challenge – Transitioning to a new model

In 2008, PT Asuransi Harta saw that outsourcing the procurement of parts to repairers was not sustainable and healthy for their business. They decided to transition to a “Direct Parts Procurement” model, directly purchasing parts from suppliers.

Solution – Connecting strategy with operations

Realizing the need for a digital platform, PT Asuransi Harta turned to Merimen’s eSource platform to implement their new strategy.

Results – Distinguished market leader

Since go-live in 2008, PT Asuransi Harta achieved cost efficiency as it was easier to monitor the delivery with “Direct Parts Procurement Model”.

 

The Challenge


Lack of transparency in parts procurement

For years, the procurement of vehicle repair parts was managed by repairers and PT Asuransi Harta, the insurers, were only involved at the end of the supply chain, for reimbursement.

Repairers, acting as the parts procurement agents, led to several issues and concerns. Namely, there was a lack of transparency with regards to the purchase price and legitimacy of the parts origination, which created customer dissatisfaction and complaints. Additionally, the sole reliance on repairers for the procurement of parts meant a delay would impact PT Asuransi Harta’s ability to serve their claimant.

PT Asuransi Harta knew that outsourcing the procurement of parts to repairers was not sustainable and healthy for their business. Hence, in 2008, PT Asuransi Harta decided to transition to a “Direct Parts Procurement” model, directly purchasing parts from suppliers.

Initially, PT Asuransi Harta attempted to manually contact suppliers and compare part prices. However, this proved cumbersome and time consuming.

Realizing that a digital platform was key for the successful implementation of their new model, PT Asuransi Harta turned to Merimen.

 

The Solution


Implementing a digital Direct Parts Procurement platform

Merimen’s eSource platform enabled PT Asuransi Harta to easily obtain and compare multiple quotes from various suppliers. The platform gave PT Asuransi Harta the ability to easily identify the most suitable supplier and immediately create an electronic purchase order. Thus far, PT Asuransi Harta has been able to consistently supply their customers with good quality parts for a fair price.

Apart from the creation of price and quality transparency, PT Asuransi Harta can easily monitor multiple orders with a complete end-to-end platform that easily integrates with the claims process. This allows them to keep an eye on every step of the process, from the assessment of repair estimates to direct quotes and order competition.

 

The Results


Within 6 months, PT Asuransi Harta went live on Merimen eSource platform in October 2008, bringing onboard hundreds of parts suppliers to procure parts for thousands of car repairs each month.

Delivering customer safety with high quality parts

eSource has provided PT Asuransi Harta with a secure platform to procure parts in a transparent and efficient manner, guaranteeing customers with high quality parts at fair prices. This has allowed for higher repair standards and greater vehicle safety for the customer.

Distinguished market leader

Becoming the first Insurer to procure automobile parts directly has enabled PT Asuransi Harta to distinguish themselves as a competitive player in the Motor Insurance industry. Touted as the first mover of this paradigm shift, PT Asuransi Hara continues to be looked upon as the leading innovator seeking to extend its growing cost.

Since PT Asuransi Harta pioneered the practice in Indonesia in 2008, over the years this Direct Parts Procurement model has become the standard market practice, being used by over 50% of insurers in Indonesia today.

 

About the customer


Asuransi Harta Aman Pratama was established in 1982. The company is engaged in general insurance business, primarily automobile insurance. Being more than thirty years in the industry, its operational network currently covers several marketing offices and branches across Indonesia, including those in Jakarta, Semarang, Solo, Bandung, Surabaya, Medan, etc.

Website: https://asuransi-harta.co.id/

 

 


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