Virgo Mihkelsoo, CEO of TruckParts Eesti OÜ, discusses the critical need for cross-sectoral standards and quality norms to drive growth and sustainability in the global truck and bus dismantling industry.
Who We Are and Where We Come From
Truckparts Eesti OÜ has been providing used truck and bus parts since 1997, focusing on truck and bus dismantling. Our operations began in Tartu, the second largest city in southeast Estonia; in 2002, we expanded to Tallinn, the capital of Estonia. In the following years, we opened a third branch in Jõhvi (east Estonia). At the same time, we attempted to enter international markets. Still, in the early 2000s, our efforts were hindered by different regulatory approaches in various countries and the lack of effective digital cooperation. While we managed to reach the level of international wholesale, our expansion remained limited.
In 2015, we decided to focus on digitalizing our operations, which brought about significant changes. We developed a new warehouse and sales management program with a partner, which we began using in 2018. The program involved thoroughly documenting the entire inventory, including photographing parts, assigning original codes, assessing quality, and adding warehouse addresses and prices. This comprehensive process took four years, but the results have been remarkable.
In order to successfully implement these developments and changes, we sold off our other branches in Estonia by 2018, continuing operations only in Tallinn.
The new software program gave us complete oversight and analysis of our operations. We can now accurately forecast the number of parts a vehicle will yield and identify the countries where they are most likely to sell. We also know which parts sell quickly and which should be sold as a set to increase their value. Through digitalization, we have been able to elevate our in-house “Interchange” system to a new level, offering deep analytical capabilities that we couldn’t have dreamed of before.
The COVID-19 pandemic gave our business a new boost as online sales became essential. Our digitalized system allowed us to quickly and effectively meet growing demand, offering flexible and contactless solutions to our customers.
In 2023,, Truckparts Eesti OÜ had a turnover of nearly 6 million euros and employed 55 people. About 70% of the parts we sell are exported, usually directly to end customers. Each year, we process around 250 trucks and 250 buses into parts. Our operations cover the entire truck and bus dismantling cycle: purchasing vehicles, dismantling, quality control of parts, warehousing, and adding digital information to facilitate sales.
We have realized that we are on the right path, but we also understand how much more can and needs to be done. For this, we need the “international collective brain” and strong partners in our sector to achieve even greater results and take truck and bus dismantling to the next level.
Our Principles and Positions
• Producing Used Parts, Not Just Dismantling
Truckparts Eesti OÜ does not simply view its operations as dismantling but sees it as the production of used parts. This approach gives our work a new meaning, highlighting that we don’t just dismantle, but we produce high-quality parts that extend the life of vehicles, reduce waste, and contribute to the circular economy. This perspective sets us apart from competitors and emphasizes the true value of our work in the automotive industry and the broader used parts market.
• Current and Future Product Offerings
We are focused on larger vehicles, such as trucks, buses, and trailers, but we also look to the future and plan to expand our operations to include the production of used parts for other larger vehicles. Our vision includes construction machinery and other industrial vehicles. We believe that expanding in this direction will allow us to offer an even wider range of solutions and achieve a greater impact on sustainability and resource conservation.
• Our Biggest Competitor is New Parts
Truckparts Eesti OÜ’s biggest competitor is not other used parts providers but new parts. Our goal is to demonstrate that used parts can offer the same high quality and reliability as new parts but with significantly less environmental impact. It is important to us that customers understand the advantages of used parts, including their contribution to sustainability and cost savings. Our work is not just economically beneficial but also socially and environmentally responsible.
• The Limitations of Knowledge and Sector Development
No company can claim to have complete knowledge of the entire truck and bus dismantling sector. Our experience has shown that the development and financing of the sector require ongoing collaboration and knowledge sharing. Therefore, ongoing partnerships and communication within the sector are necessary to share best practices and develop new solutions together. Only through cooperation can we move the sector to a new level and address the challenges we face today.
• Collaboration and Partnership for Elevating the Sector
The next milestone in the sector’s development is collaboration and partnership. Acting alone is limited and costly, but through cooperation, we can create a system where everyone can contribute and benefit. Our sector needs a unified platform and standards through which cooperation, knowledge sharing, and technological development can take place. Truckparts Eesti OÜ aims to be at the forefront of this collaboration, fostering international partnerships and solutions that will lead the truck and bus dismantling sector into the future.
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