Branch Playbook 2023

BRANCH PLAYBOOK 2023

Goals, Strategy and Execution

Contents

Topic:

Page

Business goals and objectives Management toolkit: overview Management toolkit: plan

3-13

4

1

15-44 45-57 18-21 22-25 26 -32 33-34 35 -42 43 -44 58-64

Management toolkit: do

People

Governance Operations

Customer

Growth

Finance

Management toolkit: review

Business Goals

Message From Kevan

This year is all about becoming the undisputed customers choice as their first call motor parts service provider, building on the success of the colleague engagement survey in 2022 every great performance starts with a great team. For all managers it is vital that we have taken the time to review our engagement surveys with our colleagues and captured their ideas and feedback to continually improve the colleague engagement levels across the branch network. An engaged team is key to delivering great service to our customers! We have taken great strides in our customer satisfaction survey from our customers with 62% of customers likely to call ECP first up from 45% in 2019. The survey tells us that the main reason for the call is the relationship with the branch and that is why this year we need the Branch Managers to be at the heart of their customers base maintain great relationships and supporting them with their needs. Delivering a strong service to our customers be it managing the inbound call volumes or delivering the parts to our customers within the agreed SLA this year really is all about flawless execution… By using this years playbook to create a clear action plan that is communicated across all colleagues and ensuring that we deliver our service commitments to our customers there is no doubt that we will ultimately become our customers No 1 choice service provider and we will have a successful 2023 and look forward to celebrating with the winning branches at the end of the year.

NPS

Branch profit vs target

Colleague Engagement

2023 – Customer obsessed and colleague focused Branch Playbook 2023

Customer intimacy Understanding our customers, to grow our business

People development

Product leadership Right part, first time, every time

Operational excellence

Brilliant basics and better ways of working, making it easier for our customers

A safe, motivated and valued team

5

How do we help our customer – balanced scorecard Branch Playbook 2023

External

Internal

Output

Missed Calls

% digital sales

Safety & Fleet

%Growth vs PY

Attrition

E-Learning & courses

Audit & stock control

Branch profit vs target

SLA

Returns

Customer visits

On time payment

Essentials

Absence

Productivity

Workshop solutions & Training

Daily Spending Customers

6

Branch Playbook 2023

Our Strategic Pillars

Be customer obsessed. Live our values. Be sustainable. Deliver our financial goals.

Stock availability Right part, first time, every time

Customer growth Supporting our customers, to grow our business

Operational excellence

Colleague focussed

Better ways of working, making it easier for our customers

A safe, motivated and valued team

7

2023 Network Goals - Be customer obsessed. Live our values. Be sustainable. Deliver our financial goals.

T I M I NG MEASURABLE I MPACT

OBJECT I VES

P I LLAR

1. Stock availability Right part, first time, every time

• PI >98% • Returns < 12.5%

• Ensure the highest levels of stock integrity and accuracy for our customers through a brilliant basic stock control process. • Reduce our returns rate by improved parts selection

Jan – Dec 2023

2. Operational excellence Better ways of working, making it easier for our customers 3. Customer growth Supporting our customers, to grow our business 4. Colleague focused A safe, motivated and valued team

• Create an easy and frictionless customer experience through a customer focused approach. Continue to improve our service levels with deliveries, returns, credits and warranty processes

• SLA >85% • Missed calls <4%

Jan – Dec 2023

• Deliver an aligned and consistent sales team

• Daily spending customers >20,000 • Journey plan growth

framework to deliver growth in customer spend for both the internal office teams and the external field colleagues

Jan – Dec 2023

• Deliver ongoing feedback and action plans from the colleague engagement survey • Have a more diverse, flexible and inclusive workplace • Create safer workplaces including a significant improvement in health and safety performance • Provide further opportunities for development in our teams

• CES +5% • H&S audit >95%

Jan – Dec 2023

5. Performance

• Contribution target 100% • BSC >3.0

• Deliver on our revenue, margin and contribution budget for the year. Our inputs will reflect continued improvement within the balance score card results

Jan – Dec 2023

Delivering continued growth and balanced results

Network goals by role Branch Playbook 2023

Customer Service Supervisor

P I LLAR

Branch Manager

Operations Manager

Sales Team Leader

Driver Controller

Warehouse Assistant

Administrator

Sales Advisor

Driver

Champion the retail store product and POCI check process, making sure the right stock is on the shelves at the right prices

Implement and deliver stock control process ensuring optimal accuracy and reduced shrinkages Ensure CORE standards and Ops KPIs in Balanced Scorecard are improved

Reduce percentage of returns, by always checking parts and quantities before dispatch Achieve 85% SLA by reduced van turnaround times at branch and customer deliveries

Ensure all returns collected from the customer are accurate and any quality issues are flagged

Maintain an optimal branch stock accuracy and integrity inline with P&L budgets

Reduce % returns by look up accuracy - using the tools available to check parts

Ensuring our sales colleagues are trained to identify the right part, first time every time

Stock availability

Ensure timely returns, refunds and customer statements

Check parts and take responsibility for accuracy when signing for them

Ensure we have sufficient cover to handle inbound calls and review the Sales colleagues BT3

Manage BT3 process, customer orders and reduce percentage of missed calls

Improve Balanced

Operational excellence

Work to ensure a best possible turnaround time

Take pride in front counter service and operation

Maintain pick and put away accuracy

Complete audits to a high standard

Scorecard scores and deliver profit plan

Deliver revenue budget through SPD growth in journey plan retain acquire and develop customers Deliver our colleague promise, improve employee engagement and retention, drive our safety culture

Consistently and proactively communicate with customers to develop relationships and grow SPD

Manage inbound call volumes and ensure customer connectivity

Consistently communicate with customers and colleagues – ensuring accounts are paid to terms

Acton customer issues in a timely way, bringing to

Deliver best in class customer service and always look for opportunities to upsell

Make all customer interactions positive ones, and help resolve issues when needed

Customer growth

Achieve 85% SLA on compliant routing

Support optimal dispatch with prompt, efficient and safe picking

a positive resolution

through the SA Contact Plans

Keep our sales colleagues up to date on key activity and branch performance using company reports. Ensure the Sales colleagues have individual targets in place and are reviewed against these

Deliver our colleague promise, improve employee engagement and retention, drive

Be a strong communicator, recognise achievements and success, drive our safety culture and scorecard towards zero accidents

Drive safely, taking care of yourself and others on the road – delivering high telematics scores, and zero accidents

Colleague focus

Be multiskilled and support across departments as needed

Keep customers and colleagues safe through safety processes

Commit to own learning, product knowledge and development

Be multiskilled and support across departments as needed

our safety culture and scorecard towards zero accidents

and scorecard towards zero accidents

9

Our Customer Promise Branch Playbook 2023

Our customers rely on us every day so they can do what they do, protect their reputation and grow their business. Because their success is our success, and their problem is our problem - it’s our job to help them find the solution. That’s why we will do everything in our power to live up to our responsibility to be their partner for the long term, not just for their next order. We know that when a customer chooses us, they want the experience to be as smooth, consistent and straightforward as possible. So these are our commitments to them:

The right part, first time, on time

There whenever you need us

No hassle warranty and returns

A supportive partner in a changing world

We believe we offer the best value for money and the best product availability in the market, with more than 130,000 lines in stock. Thanks to our world-class logistics, we can get them to every part of the UK on the same day and in most cases within the hour. If something goes wrong on the way to you, we’ll keep you up to date all the way, so you know when to expect your delivery. And if we don’t have a product ready for immediate dispatch, we’ll tell you when we can get one out to you, or we’ll endeavour to offer you an alternative.

We’re here to solve your problems.

We pride ourselves on the quality of our extensive product range. But on the rare occasions when something might go wrong, our warranty process is hassle free. If you buy a product with a warranty issue, we’ll aim to sort it as quickly as possible - within 30 days at the most - or you’ll get your money back. No arguments, no fuss. And if you return a product that’s not been used with its original packaging, we’ll endeavour to refund you within 24 hours – or on the same day if it’s before 4pm. No ifs, no buts.

The aftermarket is changing quickly but we will help you see what’s coming over the horizon – and to make sure your business is ready for it. From training, work referral and garage management solutions, to the technology required to work with hybrid and electric vehicles, we will give you what you need to thrive today and tomorrow. And in an increasingly digitally driven world, we’ll help you become more visible and better connected with your customers.

You’ll have a dedicated local sales advisor with the expert technical knowledge, tools and catalogues needed to give you advice – in branch or on the phone with other experts available online too. And we’ll always treat you with courtesy and respect. Your business isn’t 9-5 and neither are we. You can also order from us 24/7 through our industry leading online platform, Omnipart and you’ll receive the same delivery service as you do when you call one of our branches.

10

Our Values

Establish a covenant of trust

Know and embrace the truth

Be honest and fair

Compete to win

Develop our people

Embrace and drive change

A team player who treats all with respect. Consistently polite and courteous with customers, always puts their needs first. Reliable performance and attitude. Takes on responsibility when they can.

Always has a customer-centric attitude. Champions excellent customer service. Strives to be their best. Learns the job and systems quickly.

Reliable, punctual and someone who keeps their promises. Listens and acts on feedback. Encourages others to

Takes ownership of tasks and challenges. Engages positively with customers. Asks for support and guidance as needed.

Positive and open mindset and attitude. Engaged and committed to work. Buys into change and is flexible and resilient.

Embraces training and guidance. Great attitude to colleagues, customers and work.

maintain high standards of customer service.

11

Our Colleague Code

Branch Playbook 2023

• In 2021 we launched a new Colleague Code to the business – a guideline for supporting colleagues to be the best they can be wherever or however they’re working. • The Code builds on the LKQ values and wellbeing campaign, and sets out to champion a working environment that’s both positive and nurturing for all colleagues. • It celebrates LKQ Euro Car Parts’ greatest asset. - its colleagues. It has its own dedicated page on ECPedia, and each week is supported by top tips, updates and infographics in business communications to keep the code top of mind.

Our Colleague Promise

In 2022, we launched our Colleague Promise has been introduced to show colleagues our commitment to them on how we strive to be a fair, inclusive and high performing business; where all colleagues can feel motivated, valued, proud to come to work and where they'd be happy to recommend LKQ Euro Car Parts to their family and friends as a great place to work!

LKQ Europe / Chapter

Management Tool Kit Plan, Do, Review

Management Tool Kit Plan

The road to success Branch Playbook 2023

Success = Engaged colleagues and customers

People

Operational

Governance Customer

Growth

Financial

Branch Plan – The Road to Success

Governance

Customer

Growth

Financial

People

Operational

Setting up the branch for growth The customer experience is everything; from best-in-class retail stores to outstanding call management driven by efficient call lists. Understanding the opportunities With the aid of relevant business data, visiting all channel customers to understand the opportunities across all customer bands and product groups. Delivering growth in all product segments Knowledge is power; developing yourself and your teams. Knowing and driving GE products, Omnirewards and other value-added services to aid customer loyalty. Always looking to future growth Understand the benefits of our

Our prices are consistent Clear and consistent pricing terms and rebates are managed to maintain a fair and healthy profit margin. We make it easy to buy from us Communication with customers, giving forewarning of payment due. If a customer exceeds their terms, we work with the customer to recover the balance swiftly and professionally. Audits reflect great routines Financial audit scores and annual stocktakes demonstrate great operational routines.

Integrity Being trustworthy and engendering trust.

Driving a safety-first culture Creating a safety culture delivered through the compliance of H&S, Branch Core Standards and protecting our people with the correct PPE for each role. Building colleague engagement Clear and concise communication and engaging with the whole team. Developing our people Develop the skills and capabilities needed both now and in the future. Strengthen our 1 LKQ position Embracing and delivering the 1 LKQ Europe programme. Ways of working Continuing improved ways of working post pandemic.

Achieving operational excellence

A safety-first fleet team We use technology to execute comprehensive fleet checks and deliver a zero- accident mentality. Creating a reporting and training culture Improving our colleague’s awareness through e-learning and proactively reporting our near misses will help the branch teams prevent accidents before they occur. Always audit ready Always audit ready to ensure the branch teams delivers consistent excellent audit results.

Resolution Turning a good experience into great one.

Creating an easy and frictionless customer experience e.g. digital last mile (EPOD). Improved returns, credits and warranty processes , Enhancing customer facing processes.

Expectations Managing, meeting and exceeding customer expectations.

Empathy Achieving great customer understanding to drive deep rapport. Personalisation Delivering a personalised customer experience. Time and Effort Minimising customer effort – creating frictionless processes.

Improved SLAs

Enhancing our retail operating model

Profit and loss is the branch managers most effective tool

Customer focused Driving added value service solutions and loyalty offerings, including concepts.

Controlling trade working capital by ensuring cash payments are on time, reducing bad debt and monitoring expenditure. These are reflected in the branch P&L performance.

digital services including Omnipart, Fit It For Me and GMS options.

17

People – Weekly Communication Bulletin

Branch Playbook 2023

Daily Team Briefing

The key to an efficient business is communication. Clear and concise communication is so important for engaging the whole team. You should deliver a daily morning brief with each member of the team (sales, operations, admin etc.) Consider different start times for your brief. You don’t want to miss out any of the team, as the daily brief should be all inclusive. Weekly Round Up Each week you will Round Up email with priority actions and info. Weekly Bitesize Bulletin Each Friday a bulletin is shared with highlights across the business and good new stories, If you have any questions or would like your team to feature, please contact central.communications@eurocarparts.com BM Monthly Update Call Each month there will be an update call led by Kevan Wooden. These are a critical forum for hearing business updates and also an opportunity for you to ask questions.

Ask each department to fill out the relevant section of the brief sheet (Operations manager to complete ‘OPS KPI Performance’ etc). Save a copy of the brief and file it in a folder so that it can be referred to if needed (members of the team can catch up after a holiday break) Email the brief to the team and expect them to read it.. You should always deliver the brief personally.

People

Branch Playbook 2023

Recruiting the best Setting a great first impression works both ways. Make sure you have dedicated enough time and an appropriate room to interview candidate in a professional and attentive manner. Always use the relevant company interview template (there are various templates depending on the role for which you're recruiting).

Retaining strong colleagues

Colleague retention is vital to creating consistency in your branch. It will allow you to operate more efficiently and give your customers an even better service. Furthermore, colleagues who feel motivated and engaged will feel more inclined to the extra mile, making the whole teammore productive! Make it clear to each of your colleagues that they are valued; listen to their voice, communicate often, review performance to understand opportunities to help them to improve, and praise exceptional performance and attitude.

Review and develop the team

Taking the time to review your team is a key part of the branch manager role. Reviewing performance and attitude in a positive and constructive way, helps the individual to self-reflect and develop themselves. As a business, we have a brilliant E-Learning platform that allows all our team to further enhance their knowledge and understanding of relevant topics and product ranges. Remember to explore all available courses, and not just the mandatory ones.

People

Branch Playbook 2023

Plan your month

Labour Model The branch labour model is managed through the BRAG Productivity Report, the report is split into our 4 departments: Fleet, Warehouse, Sales, Retail + Our fixed roles: BM’s, OM’s, DC’s & Admins. This calculates what FTE (full time equivalent) headcount you should have in each department, according to the level of gross revenue you are achieving per department. Regular reviews are carried out to ensure the correct levels are achieved. Holiday Planning To support the branch network with annual leave planning a central Annual Leave Tracker is available on ECPedia. The tracker will give visibility of taken & planned annual leave month by month vs the target guide amount to be taken. Effective planning of annual leave can help to ensure that the correct schedules can be created, which in turn helps to ensure continuity on sales & operational performance in line with allocated overtime budgets. Regular conversations with your teams about holiday booking is vital to ensure we achieve effective holiday planning. Using the Annual Leave Tracker, plan the month for holidays and planned absence (available in ADP). Also use the ‘Ready To Trade’ weekend document to make sure you have the right people in the right roles over the busy weekend period.

People

Branch Playbook 2023

Wellbeing Reviews Take the time to check in with your colleagues and ask how they are feeling. Wellbeing is important and some people may need extra support from time to time. We also have Mental Health First Aiders on hand to support our colleagues whenever they may need it.

Absence days

If you complete all the previous steps – Review, Brief, Recruit, Retain, Develop and plan with your team, you should see a dramatic fall in absence days. Also remember to follow the company processes: • Return to work interviews, to help understand and provide support where needed to prevent future absence. • Absence management process, to formally address persistent absence issues.

Logging Absence

It is important all absence is recorded on the online software provided. This influences a colleague's pay so it is crucial the online records accurately reflects your colleague's attendance. Having clear records also means you can manage effectively any absence issues you may have.

Governance – Understanding Your Responsibilities

Branch Playbook 2023

The branch manager will create a safety culture delivered through health and safety compliance and SHE checks and protecting our people with the correct PPE for each role. Ensuring we do everything we can to keep our people safe has to be a way of life, not just a tick box exercise. As leaders, our primary responsibility is to keep our people safe and you’ll see that a safe workforce, is a happier and more productive one. • A member of the management team should walk through the branch daily to ensure it’s safe for our people to work in. The SHE ASSURE daily check will ensure these are recorded and nothing is missed. • We will ensure our people always have the correct PPE for the job they are doing, and the equipment is kept in great condition • All issues concerning health and safety are dealt with immediately and are escalated through the regional manager and Health & Safety team if a resolution can’t be reached • Utilise the FLO observations to identify potential unsafe acts or to recognise a colleague operating in a safe way • The branch will receive a health and safety audit to ensure the branch manager is providing a safe and compliant workplace for our people.

Governance – a safety-first fleet team

Branch Playbook 2023

Technology such as onboard cameras, Telematics, Microlise and comprehensive fleet checks will help support the branch manager instil a zero-accident mentality. The branch manager needs to create a culture where the safety of the branch team and that of the general public is our number one priority every single day. • The van fleet will always be in great condition through regular servicing, with faults identified through daily and weekly check sheets on microlise • We check in on the wellbeing of our drivers and conduct telematics reviews daily (operations support manager can support with telematics and microlise questions) • Telematics and onboard cameras to be used to monitor the quality of driving from our team, celebrating examples of great driving and challenging poor examples. • All drivers to complete their E-learning so they have a detailed understanding of what to do in the event of an accident (this should be covered at the point of induction to the business.)

Governance - Audits reflect great routines

Branch Playbook 2023

Financial audit scores and annual stocktakes demonstrate great operational routines. LKQ Euro Car Parts has a structured approach in auditing our standards and procedures. Financial audit reviews are conducted biannually and review the financial risk of your branch. This indicates to what degree the practices and standards you have in your branch are a financial risk to the company.

We also run annual stocktakes in our branches, to ensure stock accuracy is 100%.

Tip: A good PI score throughout the year usually removes the need for a full stocktake. • A great audit is produced by adhering to company standards around processes and procedures. • The branch team deliver this through consistent completion of the daily task sheets. • Specific feedback is provided by the auditor following his visit to your branch. resolutions are agreed against a timeline.

We have an audit team on hand to help and support you in delivering a great audit result.

Governance - Creating a reporting and training culture

Branch Playbook 2023

Improving our colleague’s awareness through E-learning and proactively reporting our near misses will help branch team prevent accidents before they occur. Having a better trained team massively improves accident rates, along with the confidence of the team. • Forward thinking managers will proactively plan colleagues E-learning time and try to create a dedicated area for training to be completed with limited distractions i.e. a learning zone • Near misses will be reported without fail and any remedial actions will be addressed straight away through SHE ASSURE • All relevant and compulsory health and safety information will be displayed in the correct area for colleagues to access (H&S team can advise if unsure).

Operations

Branch Playbook 2023

Maintaining a great working environment

We look after our people by keeping work areas clean, presentable and safe, whilst adhering to workplaces standards and acting on the daily safety moments.

Health & Safety Communications

‘Safety moments’ are a great sense check to ensure you and your team are working and acting in a safe way. Monthly health and safety bulletins cover safe working practices. As a standard, this is briefed out to the whole team by the BM and OM to ensure safe working practices are in place.

Branch Core Standards

A weekly standards check should be conducted by the Branch Manager using the SHE software, accessed through ECPedia. This covers each pillar of our business, including operations. It takes no longer than 20 minutes to complete and includes sign offs for working conditions and standards.

Operations – Fleet safe working standards

Branch Playbook 2023

To protect the public and the business, it is crucial a high standard of driving is maintained daily within our fleet team. We have these tools available to help you understand and manage these standards: • Van Policy: this covers the roles and responsibilities a colleague has when driving on behalf of LKQ Euro car parts. Available on ECPedia. • Drug and Alcohol policy: Available from HR/ADP • Driver handbook: a quick reference book based on ‘dos and don’ts’. Available on ECPedia. Posters and guidance notes: Regular fleet safety campaign updates are available on ECPedia for you to talk about with your teams and display. These measure how well our teams are driving. It shows you detail as to how well they are braking, accelerating and so on. • These scores are put together into an overall driving score for every driver, making it easy for you to measure and manage. • This information is sent out via your regional manager and can be tracked daily through the telematics software - via DCs and OMs • The benchmark for a driver's score is 85. This should indicate safe driving practices. • Camera footage is also available and can be viewed via the portal. Average telematics score for the month

Operations – Branches operate efficiently continued…

Branch Playbook 2023

Branch Core Standards

Branch core standards ensure a well rounded and efficient operation. They are completed on a rolling 4-week cycle within SHE assure by the branch manager. It is based on governance, financial, operations & people topics. Daily task sheets are also completed by the heads of department in all four operations areas: Warehouse, Fleet, Admin and General Housekeeping (OM general sheet). If these tasks are done regularly to the required standard – you will achieve a great Audit score!

Operations – Market leading stock availability

Branch Playbook 2023

The branch manager ensures he beats the competition through stock availability. With his management team he reviews alternate locations, T2 returns, BT3 and cleanses, whilst ensuring customers are looked after through timely refunds and warranty management. A branches strength comes in its stock availability. It is the first hurdle to cross at the point of sale, so is therefore crucial to maintaining customer confidence. A branch has both inbound and outbound stock operations, and accordingly a book in, book out (BIBO) process to identify discrepancies: • Inbound: Overnight replenishment deliveries, VOR (emergency stock deliveries) that are received three times a day from your local HUB branch and direct from supplier deliveries and customer credits. • GFR: (Good Faith Receiving) is the process to follow for booking in your overnight stock deliveries. • Outbound: Customer deliveries and T2 returns. • BIBO: This is the process we follow to ‘add’ to or ‘write off’ from the stock holding. Branch Bespoke PI This is a discretional stock count to support the Systemic PI and stock accuracy to reduce the risk of disappointing a customer. T2 Returns T2 returns include stock that is requested via an uplift, damaged and warranty stock, and stock requested for a branch transfer (IBT). This is collated in the ‘sub locations’ are of your branch. BT3 This report shows what is on order for your branch. It is essential this is reviewed regularly to ensure what is on there is what is needed and to spot failed orders so these can be re-ordered.

Operations – Branch returns rates - Right Part, First Time Branch Playbook 2023

Customer Relationships are incredibly important when it comes to developing our customer’s business, which is why delivering the right part, first time and on time is a key metric for our business. Our sales team deal with a large volume of inbound/outbound phone activity on a daily basis and their behaviour and accuracy of part identification using the systems we have available is very important. Delivering the wrong part has a big impact on our customers – it makes them lose trust in us and precious time on the ramp. The impact to the branch is also significant, leading to additional calls, further picking, delivery pressure, returns paperwork, stock put away and the financial costs at our distribution centres. Part identification We have a number of systems and training aides to support with part identification and help you make sure you are only sending the right part, first time: • Top Cat, OE Catalogues and Web Chat • Catalogue teams continually improving our look up systems • Computer Aide Training on our LKQ University eLearning platform. Use reports to keep return rates low Our aim is to achieve sub 10% customer returns rates, using the returns rate reporting tool to identify branches, SAs and customers with high returns rate percentages. You should be using these reports on a regular basis to not only help your teams improve, but also to engage with customers to bring them up to speed on the impact high return rates have, and encourage them to utilise our digital platform ordering platform – Omnipart.

Operations – Market leading stock availability continued Branch Playbook 2023

Cleanses You will receive regular cleanse requests from head office for stock that is either slow moving or end of range. These are completed as part of the daily warehouse routine and make space for new stock and larger stock depth of key lines. PI Average Score This is a daily compulsory stock count. This score is reported back to our investors to ensure our stock accuracy is fit for purpose. The goal here is to deliver 98%+ stock accuracy. This is achieved by executing great daily stock routines.

Refunds Often referred to as credits, these are stock returns from our customers. These should be processed when the driver returns through the ePod process – within 24 hours – or on the same day if it’s before 4pm, in line with our customer promise. Warranty Management Sometimes, stock is sent off for testing via our warranty department. This is where a customer may be claiming for loss of earning, and so required further investigation. The warranty process includes a 30-day warranty promise timeframe, to ensure customer issues are resolved as soon as possible.

Operations – Maintaining strong customer service Branch Playbook 2023

Digital ordering Omnipart is our online parts ordering platform, for trade customers. It provides instant access to over 130,000 parts, 24/7 whilst offering a range of other important benefits for both a garage and you in branch. Omnipart allows you to positively develop your customer relationships - not only will customer receive their orders faster but if you can get them to automate their routine orders, it leaves you free to develop their account and help to grow their business. That’s parts and service sales that you’ll benefit from. Plus, adopting Omnipart as your digital best friend means you’ll never miss a sale, as all orders via Omnipart are automatically allocated to a sales advisor code. To get the most from it, there are a few things you can do. • Look at the user guide: there is a user guide on ECPedia to talk you through new user creation and online account management guide. This is essential as the business aims to increase the number of customers actively using Omnipart daily • Omnibuddy: Ensure your team are registered to use omnibuddy and tracking their progress on the online portal, omni buddy is their digital support who ensures they deliver great service to their customers • Nominate your Branch Champion: Your Omnipart Champion will take care of the daily branch maintenance, including new account applications. You will also follow up with new customers who haven’t used the platform before to provide support • Familiarise yourselves with the Omnipart QlikView report: Each Branch Manager should look to regularly check and understand QlikView Report ECO005. Regularly challenge your team on the performance of all customers – can they increase their sales and truly benefit from the platform? • Watch the ‘How to’ videos: We have created a series of videos to show you how to do important tasks on the platform so you can help your customers.

Customer – Delivering strong customer service Branch Playbook 2023

Dispatch A successful dispatch is built on the foundations of customer’s routing, dealing with any issues quickly and by reviewing driver statistics. Often, dispatch is the largest department in an LKQ Euro Car Parts branch. It is a fast paced and time driven part of the operation, as it is dependant on an efficient set up in order to meet customer expectations throughout the day. It is measured through two key areas; speed of delivery and safe working standards.

Speed of delivery - missed SLA % (Service Level Agreement): This indicates how many deliveries took longer than our service level agreement with the customer. Our SLAs are: • 60 Minutes: agreed time to arrive with the customer after placing an order. • Timed: arriving at the customer at agreed time slots throughout the day.

This is measured through Microlise and SLA balance scorecard – the goal here is to have less than 10% failed SLAs, stage 1.

Report Location

Report Owner

Weighting

Measure

Measure Description

Blue

Green

Amber

Red

6%

Microlise

% of deliveries completed within SLA

Operations Derek Main

>90% 85%>90% 80%>85% <80%

Customer – Maintaining strong customer service Branch Playbook 2023

Call management Our sales team's main priority each day is to effectively manage and serve the customers who are calling us to order products. This is our ‘inbound’ business and is the core stream of revenue. When ‘inbound’ demand eases off, the sales team then move to an ‘outbound’ call strategy, checking in with our customers and looking for additional sales opportunities. Effective call management is the sales offices ability to balance inbound and outbound calls every day.

The main metric to reflect this is missed call percentage with an appropriate outbound call volume achieved.

Top tips: • Make sure your SA calls sheets are up to date – it’s a great way to manage your outbound strategy. • Do you have a rising star in the branch who isn’t currently in the sales office, but with the right training and development could be a future successor?

Report Location

Report Owner

Weighting

Measure

Measure Description

Blue

Green

Amber

Red

4%

External Missed Calls %

% of Missed Calls

Tiger Report Central Ops

<3%

<4%

<6%

>6%

Call quality It is important that we have a consistent approach when deal with our customers needs. Our Sales Advisor’s behaviour help make the difference in creating and maintaining positive customer relationships, and growing them for the future.

On every call our teams should: • Double check the vehicle make and reg and confirm back to the customer, seeking agreement • Don’t send options – use dealer catalogues etc. • Confirm the products required in a service kit – does the customer also want the pollen filter? • Give positive confirmation back to the customer – so that’s a service kit with oil, air and oil in 5ltrs for a ford focus • Thank the customer for their order, and let them know that it be with them within the next 60 minutes.

Growth – Always think; customer first Branch Playbook 2023

The customer experience is everything to us. From best-in-class retail stores, to outstanding call management driven by simple, efficient call lists – everything we do should put the customer first. Driving the sales line is great but it’s all for nothing if you don’t grow the margin at the same time. This is about how we manage accounts every day; from the initial pricing terms set in the accounts, the rate at which we reduce prices and growing the overall sales number to deliver us more total margin. A great way to improve this Is to treat it as if it’s your own business; would be giving away your own money if you didn’t need to? Knowledge is power so the branch manager will develop both their team’s and their own GE (Garage Equipment) product knowledge, as well as utilising Omnirewards and other value-added services to aid customer loyalty. The promotions the business set up for our customers come at a cost, so it’s imperative our teams understand the offers and engage with our customers. • Ensure you and the teamwork through all E-learning modules including those that cover GE • Spend time with your RAM/AM to understand Omnirewards and how we can use this as a great tool to incentivise our customers and gain their loyalty • Make time to develop a relationship with the local Collision Centre at your local RFC, as this is an important revenue stream. Delivering growth in all segments

Growth – Understanding the opportunities TSMR Sales ( I ndependent Trade Service Maintenance and Repair) Branch Playbook 2023

Our trade customers are massively important to us and the area of our business that our competition is always looking to take from us. These customers can massively vary in size, from small operations to those with multiple bays, so it’s important to understand their individual needs. The performance in this category is heavily influenced by the relationship between the sale teams and the customer. The Sales Team Leader plays a huge part in ensuring with we have the right culture within the Sales Office with the goal of driving up the number of transacting customers we have spending with us every day.

This is also supported by our Account Management Team who will provide solutions for our TSMR customers so a close working relationship with your Account Manager is essential.

Our trade customers should be allocated to a sales advisor through the contact plans. They should make daily contact with their customers, using the information on their call plan as an aid. • Branch Managers need to visible to our customers and all visits should be recorded on I-Snapshot which will populate the Marketing Database. • The ‘Sales Engagement Board’ board should be completed by the Sales Team Leader throughout the day, every day, using the purpose built report (OPR020). • Sales office – Your Sales Team Leader is accountable for driving all sales related activity including quote and call management but stay close to the numbers especially around your drifting customers. • Accounts should be regularly reviewed to understand which product groups are growing and which are in decline (OPR010). • The Sales Excellence Team hold regular training for both the Sales Team Leaders and Account Managers so ensure you enable your colleagues to participate in these planned sessions.

Growth – Retail is service Branch Playbook 2023

From the service we offer in store, to the standards we present in our shops, to the organisation of customer collection services – this is a great channel to drive additional sales by asking the right questions and adapting displays to appeal to the trends in the marketplace, like any great retailer would do. Our retail stores should be walked and replenished daily, and our colleagues kept up to date with new offers and promotions. You can deliver success in our retail areas, by focusing on four core areas: • Be customer centric , always; a retail customer should get the same great service every time. Having a consistent approach and a team that understand the significance of the retail counter customer experience, even when it’s not their full-time job will set you up for success • Plan ahead ; be ready to deal with peak periods quickly, efficiently and safely, and use the less busy times to get in front of the things that’ll set your retail space apart • Consistency ; your store should look like a LKQ Euro Car Parts store, with well planned layouts and products in line with your planogram • Conversion ; use the customer contact opportunity to seal the deal, be proactive, get in touch with customers and make the experience one they’ll want to repeat in the future.

Growth – Key Account sales vs. last year (National Accounts) Branch Playbook 2023

This is a key channel owned by the branch manager. These customers are some of the largest names in the industry and are very important relationships for us. This is normally service and relationship driven, rather than being about pricing and rebates, as these are normally organised centrally. An understanding of the local dynamics and knowledge or any compliance measures will help you grow these accounts. Some of these accounts will only use certain brands and ask for their returns to be done in a certain way. Building and maintaining relationships is key here, which is supported by a healthy visit schedule. Total sales vs. last year This is the most basic measure to understand the growth of any business. With the impact of inflation, if a business isn’t growing, it’s effectively going backwards as the cost of goods goes up each year. Driving this number year on year is about delivering excellent and consistent service as well as looking for new opportunities within the market. Our customers want to know, whenever they need support or advice; their local branch manager is on hand to help. Building trust and ‘doing what we say we will’ is massively important to forge long lasting relationships.

With the aid of relevant business data, the Branch Manager will visit all focus channel customers to understand the opportunities across all customers and product groups. We split our customers into three areas, these areas are based on spend and potential. Retain = our largest turnover group. Develop = Customers that spend but not to potential. Acquire = our smallest spenders, our opportunity customers Customer grouping to support our strategy AMs look after our biggest potential customers. 75 accounts max with some mandatory customers with the rest being selected by the RAM and AM. A monthly target will be included, which is based on the companies required growth for each sales group.. The other key metrics include improving customer wallet share percentage and improve the digital performance. BMs are responsible for minimising drift by completing their critical visits. There will also be Key Accounts added where a focus is required. It's critical our BM's complete their visits. To make it easier for you to track your visit completion and customer performance the Central Reporting team issue a report twice a week. Growth – Understanding the opportunities Branch Playbook 2023

Our customers rely on us every day so they can do what they do, protect their reputation and grow their business. Because their success is our success, and their problem is our problem - it’s our job to help them find the solution. That’s why we will do everything in our power to live up to our responsibility to be their partner for the long term, not just for their next order. We do that by focusing on relationship building and putting customer centricity at the heart of everything we do. Growth – Account management: supporting our customers, to grow our business Branch Playbook 2023

The ideal customer visit is about creating, building and retaining relationships – not necessarily the sales. You should take customers on a journey…

Growth – Garage Essentials – the vital items for every workshop Branch Playbook 2023

Our B2B workshop customers in the main sell labour which is effectively their time. Time is therefore money and having the simple lubricants tools and consumables on site is vital to them. • Garage Essentials is designed to give customers access to all this in one place on a monthly basis, as well as some great deals to take advantage of launching every week • Incorporated within this is a tools specific section named ‘Tools Torque’ which covers tools typically used by the workshop technicians (in most cases these technicians own the majority of the hand tools they use day to day in the workshop) • Workshop equipment is typically featured here, however this is mainly lower level items where the workshop will own them rather than the technician, (e.g. oil drainers, spring compressors, etc.) • We also feature the items online via Omnipart for the customer to browse at their leisure • It makes for a great reason to call the customer, and is a great way into new customers with a reason to make contact • Regularly featuring seasonal or market change related lines too (MOT peak items, winter, summer, etc.) • Its also a great way to get ahead of having to supply everyday consumables on distress deliveries, so planning ahead and helping branch productivity on deliveries • The monthly target is made from a forecast number of what we normally sell day to day, plus a small stretch applied based on the item featuring in the essentials list that week.

Growth – Workshop Solutions – the tools of the trade Branch Playbook 2023

Workshop Solutions Products & Services are a gateway to the heart of our customers business… you can't work on a Hybrid / EV vehicle without training, you need a diagnostic unit to service todays vehicles… when was the last time you visited a garage without a ramp? By providing Workshop Solutions (products & services) we support the development of our customers businesses, this drives loyalty and further enhances our vital parts business. • This year we will focus on 4 Pillars of Workshop Solutions with a target for each making up the overall Branch Monthly Target. These are Air Con Campaigns, Training, Diagnostics and Garage Equipment . It is important that your plan captures how you will drive each area of opportunity • Know and understand your customer needs , become a trusted partner that highlights opportunities e.g. ADAS , AC etc and how best support their growth and profitability. • Lead Generation builds future sales (pipeline), Experience tells us that our customers are always thinking of their next business investment but we will only uncover these opportunities by asking open questions e.g. what training courses would really benefit yourself/team? How can we support your future growth with additional equipment? Make sure the competitors do not get in first – often it’s just about timing and who asks the question gains the sale. On average only 3 in every 10 leads result in a sale so you need to keep the pipeline topped up regularly. • Engage with your REM, RAM and Account Manager to support your Playbook plan they are all there to help when needed. • Feel free to reach out to the Workshop Solutions Senior Team where you have questions we are always happy to support in any way that works for you. • Don’t forget the contact details are all on the ‘in Branch posters’ and we always welcome constructive feedback