DCR Systems Launches Collision Repair Outsourcing Program
 

Dealer-based turnkey collision repair operations reinvent industry.

MENTOR, OH February 16, 2005 -- In an effort to strengthen customer loyalty and enhance revenue streams for U.S. auto dealerships, Cleveland-based DCR Systems (http://www.DCRsystems.net) has launched an innovative plan to build, staff, tool and operate state-of-the-art collision repair facilities in partnership with dealers nationwide.

The company has developed a patent-pending, cutting-edge production system that streamlines the old-line body shop process and raises the bar on repair quality and customer delivery. Using this business model DCR Systems founders have developed a 12,000-square-foot dealership add-on facility that has the flexible capacity to facilitate 80 to 200 vehicle repairs per month based on demand response.

DCR Systems president and CEO, Michael Giarrizzo, Jr., said the business model is based on "lean manufacturing" principles which eliminate many of the inefficiencies and redundancies traditionally associated with auto body repair. "The old way of repairing a car involved one technician working on many vehicles," Giarrizzo said. "DCR technicians are task-specific experts trained to use the latest repair technology when and where it's required. The process involves a series of interdependent steps that are tied together by validated, documented quality verification."

The company is offering its operation to auto dealerships nationwide that don't presently have an on-site body shop, fleet systems and for specific insurance applications. The dealerships represent a market that has steadily increased as advancing auto technology and stringent environmental regulations have driven up the capital required to maintain collision repair operations. With a shortage of qualified repair technicians and insurance payors putting added pressure on reimbursements, the appeal of operating a dealer-based body shop has greatly diminished. This has become evident as only 40% of domestic auto dealerships maintain such operations.

The DCR Systems program provides a way for dealers to recoup those lost repair dollars through the re-establishment of a body shop operation, overseeing every facet of the process, including construction, staffing and management. Dealers provide the site and promote the service to customers and DCR handles all remaining responsibilities.

From a business perspective, the concept of partnering in a DCR-operated collision repair program on the dealership site is an attractive, low-risk decision. In doing so, dealers can retain those repair dollars that previously would have gone to off-location third-party body shops. More important, the dealer is able to provide a vital service that complements the core sales, parts and customer service functions. The end result, according to Giarrizzo, is an unbroken bond between dealer and customer through an all-encompassing cadre of services.

DCR Systems Backgrounder: DCR Systems (http://www.DCRsystems.net) is owned by the Giarrizzo family, a well-respected name in the collision repair industry through the operation of Cleveland-based JSI Collision Centers which they established in 1946. JSI grew from a single location to a four-store chain in northeast Ohio with annual sales of $12 million, and was twice recognized by the industry as "Collision Business of the Year" for its customer service and standardized operating procedures. The business was acquired in 1999 by Sterling Autobody Centers and four years later grew to 39 locations. In 2001 Allstate Insurance Company acquired Sterling, and Michael Giarrizzo Jr. took the position of Chief Operating Officer for the Sterling division. While leading operations, Giarrizzo grew the company by establishing an additional 21 "greenfield" stores in just two years.

Giarrizzo subsequently left his position in 2003 to start DCR Systems with the vision of changing the collision repair industry and returning a body shop revenue stream to dealers seeking to retain loyal customers by providing ancillary customer care services.

 
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