The conceptual model was utilised to investigate the change in governance as the
RL system developed. Before the establishment of the RL system the ELV would be
sold to the salvage agent and the vehicle was subsequently moved to landfill. The sale
of the ELV was a forward flow from the insurer to the agent without any recovery of
parts for reuse in repair. The ELV to landfill forward flow was governed through a
market-based approach based on simple, easily codified transactions that salvage
agents were capable of managing. After the establishment of a RL system it was
planned that the salvage agent would recover parts from the ELV for use in the repair
of insured cars. The governance established for the RL system would be based on
managing an increasingly complex product specification with difficult to codify
transactions requiring an enhanced supplier capability.