RS Automotive Core promotes its green initiative

RS Automotive Core is a company that buys and sells used vehicle parts – PMF’s editor, Tom Henman, caught-up with one of the two owners, Ryan Webster, Finance and Operations Director, Robyn Webster, alongside Managing Director, Alastair Whatmore.

Throughout last year, we brought you brands aplenty that champion remanufacturing. It’s a practice that looks to give previously discarded parts a new lease of life, only replacing parts that absolutely need to be – but where is the core sourced from? RS Automotive Core is one such company that buys and sells used vehicle parts.

“It’s not just about making a profit; it’s about protecting the environment through recycling and sustainability. We want to keep as many parts as possible out of landfill,” began Ryan when quizzed on RS Automotive Core’s aims and objectives.

RS Automotive Core is a ‘core dealer’ with more than one million units stocked in various locations across the UK with a total of 90,000sqft of warehouse space. These locations are ready to supply both domestically and internationally. It employs an open-door policy, meaning customers can pay its site a face-to-face visit and buy off the shelf, send a requirement list to the company’s dedicated ‘customer relationship’ team or, vice-versa, ask the team to send a list of parts in stock.

Keeping that large number of units in stock means locating stock from a vast number of places, which must be a challenge, right? Ryan responded: “It’s always a challenge finding new sources of core, but we are fortunate that our supplier base continues to grow, and we believe this will continue.”

Taking a punt!

At this point, Alastair joined the conversation. Before joining RS Automotive Core, he was the joint owner and managing director of Autostores Motor Factors. The factor was a multi-branch site based in Worcestershire and the Southwest. For more than 15 years, the company enjoyed “considerable growth” before being sold to Alliance Automotive Group in August 2019.

During this time, Alastair was also the chairman of the Parts Distribution Partnership – or PDP as it is better known – and oversaw an increase in purchases from suppliers of over 250%, alongside a considerable growth in members of the buying group.

Alastair began: “Remanufacturers supply lists of part numbers they need to replenish their stock, and they will purchase from core dealers who have the best availability and price. A core dealer has to take a bigger punt than most other suppliers in the aftermarket due to the core supply not being on a contracted basis.

“We pride ourselves on our team of experts; they have great technical knowledge of market movements and have the tools in place to track lost sales and future market trends.”

“Recyclers first and foremost”

Alastair, clearly experienced, has many long-standing industry relationships. He is well-placed to offer a perspective in terms of how the automotive aftermarket operates and potentially will evolve.

He continued: “I believe that core dealers will progressively gain significance in terms of the growth in remanufacturing. A discernible shift is occurring, driven by the challenges imposed by COVID, such as escalating transport costs and availability of products. The market felt a commercial strain at that time, and this has shown us that competitively-priced products that are remanufactured closer to the UK has to be a benefit to all.

“In this landscape, if a remanufacturer can consistently deliver a high-quality, easily accessible, and competitively priced product, I anticipate that this specific market segment is poised for substantial growth.”

Robyn added: “There is also the environmental benefit; this is important to us and our team. We are proactive in adapting our processes in how we source core to make sure that as many parts as possible are remanufactured.

“The environmental aspect is also important to our customers; they want to illustrate their credentials to their own customers and showcase the importance of remanufacturing and recycling.”

Ryan then made the point: “We are recyclers first and foremost; we consider ourselves to be a valuable element of the remanufacturing process.”

“A massive pool of motor factors”

Alastair said joining RS Automotive Core made complete sense with his background and expertise within the supplier and motor factor market: “There are motor factors around the country that are selling products to a workshop that could attract a surcharge – that’s it, sale over!

“Nowadays, though, there are more and more motor factors that are recognising that if they put a modest surcharge on a new unit, for any product that could have a surcharge value, there is an additional margin to earn. This is where a relationship with us is beneficial; we will buy those returned units, which will be remanufactured, and offer additional revenue for the factor.”

Ryan added: “Many motor factors don’t like the idea of a surcharge; we’re trying to market it as a green incentive. This is an opportunity for factors to be more environmentally active whilst enhancing margin.

“We can confirm that those motor factors that have started to embrace this philosophy of introducing a small surcharge have seen absolutely no reduction in sales, as their garage customers also like the idea of being part of this sustainable initiative.”

Alastair came back in: “We are seeing a consistent trend to the benefit of factors: for every £1 million worth of turnover for a factor, we are typically purchasing £6,000 to £9,000 of core. We are giving them opportunities to earn more revenue, while giving products a second chance, so it’s a win-win for them.”

Conclusion

With over a million units in stock and an expansive warehouse space ready to meet both domestic and international demands, RS Automotive Core’s dedication to recycling and reducing environmental impact is commendable.

The company, under the leadership of Ryan, Sonny Wymer, Robyn and Alastair, anticipates a promising future. They recognise their increasing significance in the remanufacturing landscape.

By fostering strong relationships with motor factors and promoting a green incentive over traditional surcharges, RS Automotive Core believes its business model not only generates revenue but also contributes to a greener, more sustainable future for the automotive industry.