LKQ-UK-IRELAND-LOGISTICS-SUPPLIER-MANUAL-JUL2024 (1)

Logistics Supplier Manual

Version 2.0: January 2020

Supplier Manual: Logistics

1

1 : Contents

2 3

Introduction

3

8.1

Delivery Times

14 14 14 14 14 14 15 15 15 15 16 16 16 18 18 18 18 18 18 19 19 19 20 21 22 22 23 23 23

Data Requirements

4 4 4 5 5 6 6

8.2 8.3

Waiting Charges

3.1

Selling Product Data

Arrival on site

3.2

Operational Product Data

8.3.1 Delivery Vehicle Requirements

3.2.1 Operational Product Data – Weight & Dimensions

8.3.2 Driver Dress Code

8.3.3 Driver behaviour requirements

3.2.2 Weights and Dimensions

8.3.4 Registering On Site 8.3.5 Delivery Paperwork

4

Packaging and Labelling Packaging and Labelling

4.1

8.3.6 Accessibility

4.2

General Guidelines – Outer Packaging

7 7 7 7

8.3.7 Summary of Delivery Check

4.2.1 Presentation

8.3.8 Non-standard equipment

4.3

General Guidelines - Primary Packaging

8.3.9 Load Specification

4.3.1 Presentation

8.3.10 Carton Deliveries

4.4

Pallets

8 8 9 9

8.4

Presentation

17 17

4.4.1 Presentation

8.4.1 Pallet Labels

9

SKU conformance

4.5

Heavy Items

4.5.1 Heavy Item Label Examples

9.1

Carton quantities

4.6

Packaging Labelling

10 10 10 11 11 12

9.2

Delivery Discrepancies

4.6.1 Primary Packaging Identification Label

9.3

Damages

4.6.2 Outer Packaging Identification Label

9.4

OTIF Conformance

5

Delivery Requirements

9.4.1 On Time and In Full

10

Container Presentation Conformance

5.1

Performance Monitor

6

Booking Conformance

10.1 Container Condition

6.1

Pre-Delivery procedures, Booking System 12

10.2 Container Loading

11 12

Euro Car Parts Ltd Distribution Centres

6.2 6.3

Delivery Booking

12

Euro Car Parts Ltd Logistics Contact Directory

Timed Delivery Slots 12 6.3.1 Advance Packing Lists/Delivery Paperwork 12 6.4 Introduction of Booking Portal 12 7 Presentation Conformance 13 7.1 Delivery refusal 13 7.1.1 Reasons for refusal 13 8 Delivery Conformance 14

13

Product Attributes Sheet

13.1 Data requirements

14

Fixed Compensation

14.1 Fixed cost recovery

14.2 Fixed Compensation Charge Matrix

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2 : Introduction

Prior to the launch of T2 in 2017, we advised all our suppliers that the new £75m state of the art, semi automated distribution centre would be ‘a game changer’ for Euro Car Parts. We explained that the new site would support us through the next stages of our business expansion and provide the best platform for your business to grow with us. Three years on and T2 is performing over and above expectations. Since then, Euro Car Parts has grown significantly, acquiring Andrew Page in the UK and Team PR Reilly in the Republic of Ireland, all facilitated by the additional storage and throughput capacity provided by T2. We have worked hard to improve safety, quality and productivity. Everyday service levels from T2 to our national network of branches are consistently above 99.9%, highlighting how we continue to provide our customers with industry leading levels of product availability. As we move into 2020 however, it has become apparent that there are still opportunities to further improve the efficiency and service levels provided by T2. Like any automated facility, the efficiency of its output is very much reliant on the efficiency of its input. In the case of T2, its ability to improve productivity is dependent on supplier deliveries and their conformance with best practice. Best practice for supplier deliveries into T2 were set out in the ‘T2 Supplier Manual’ issued to all suppliers in March 2017 . This manual sets out very clearly all aspects of how deliveries need to be made into T2, both from a physical and administrative perspective. As promised, we have now updated our T2 supplier conformance manual.

We wish to work collaboratively with all our suppliers and ask that you thoroughly review our best practice conformance manual against your actual practices. Where we see instances of non-conformance from deliveries made into T2 we will be sending you details over the next few weeks and months to help make it clear where remedial action is required. For clarification, and as per the details set out in the manual, non-conformance by supplier’s costs Euro Car Parts real money and there are set compensation charges for specific instances of non-conformance. Given that Euro Car Parts has already absorbed a significant non-compliance cost since the start of T2 in 2017, we believe that it is now reasonable to start applying these compensation charges for any instances which contravene our conformance manual. These will be presented to you as a separate invoice for payment within 30 days. Our hope and desire is that no compensation charge will be necessary as all our suppliers will make the changes required to fully comply with these reasonable performance standards. However, after three years of practice we should all be getting it right by now and it is unreasonable for Euro Car Parts to carry the costs of supplier non-conformance. So, let’s work together to get T2 working even better for our own benefit as well as, of course, the benefit of our customers...

Richard Morgan Chief Supply Chain Officer Euro Car Parts Ltd

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3 : Data Requirements

3.1 Selling Product Data

All previously supplied weight and dimension data will be authenticated upon receipt at our distribution warehouse. Euro Car Parts Ltd will allow a 5% tolerance either under or above the original data supplied by the supplier in the product attributes sheet. (See Section 13). Differences outside of the tolerance will result in a compensation claim being raised against the inaccurate data. (Please refer to fixed compensation Section 14). New Product data should be emailed in csv format to productinfot2@eurocarparts.com, please refer to the data sheet in Section 13. Any change in product data regarding dimensions and weight must be notified 1 week in advance of shipping the product to Euro Car Parts.

In order to capture the data, the Product Attributes sheet must be completed; these will be supplied to you by our buying team. (See Section 13). Complete, accurate and timely provision of data is essential to enable a product to be accepted by Euro Car Parts Ltd. Inaccurate, incomplete or late product data will potentially result in products being misrepresented through our sales channels and a delivery refused. Delays in the provision of data will result in a setback in making a product available for sale. Suppliers who provide inaccurate data may be liable to pay the costs and expense incurred by Euro Car Parts Ltd for failing to meet our requirements. (See Fixed Compensation, Section 14).

3.2 Operational Product Data

All data must be completed accurately to enable Euro Car Parts Ltd to move your products through our supply chain. Incorrect data causes huge disruption to the operations of our business, in particular to our highly automated distribution centres. As a result, compensation claims will be raised against products that fail to comply with this. (See Fixed Compensation see Section 14).

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3.2.1 Operational Product Data – Weight & Dimensions

3.2.2 Weights and Dimensions

Measurements are split down into four individual attributes; see diagram Dimension H – Height, measured in centimetres, including packaging. Dimension W – Width, measured in centimetres, including packaging. Dimension D – Depth, measured in centimetres, including packaging. Weight – Measured in grams [g], this is the total weight of the product, including packaging. • When taking the measurements of your product it is important to realise that operational data may be different to the selling data that you have supplied • Operational data measurements must be taken including primary packaging and take account of the correct orientation of the product for storage • If your product is supplied in a bag, please wrap the bag around the product to get the smallest possible measurement • If you are not sure that you have taken the right measurements, or if you have an irregular shaped product (carry handle for example), please contact the Supplier Support Team/Account Manager. Some things to remember:

We operate both a highly automated and fast-moving supply chain so accuracy within the product data that we receive from suppliers is crucial.

Here are a few examples of decisions regarding your product that are made from this data:

• How it is handled from a health and safety perspective • Where it is stored in our warehouse • To determine the sales channels that your product is sold through • How many of each product can be stored within each storage medium • How a customer order is packed • Weight check on all customer orders prior to dispatch.

Dimension H

Dimension W

Dimension D

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4 : Packaging and Labelling

4.1 Packaging and Labelling

Within this document the terms “Primary Packaging”, “Secondary Packaging” and “Tertiary Packaging” are mentioned on a frequent basis. It is important to clearly understand these phrases and they are explained below.

Primary Packaging is the packaging around the selling unit to the customer.

Secondary Packaging is the packaging around a number of selling units, often referred to as the “outer” or the “carton”.

Tertiary Packaging is the packaging around a number of secondary packs (or outers/cartons).

Primary Packaging is the packaging around the selling unit to the customer.

Secondary Packaging is the packaging around a number of selling units, often referred to as the ‘outer’ or the ‘carton’.

Tertiary Packaging is the packaging around a number of secondary packs (or outers/cartons).

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4.2 General Guidelines – Outer Packaging

4.3 General Guidelines - Primary Packaging

Secondary & tertiary packaging must be robust enough for the goods to be fully protected between the supplier and Euro Car Parts Ltd distribution centre; picking, handling and receipt in the Euro Car Parts Ltd distribution centre and ultimately delivery to Euro Car Parts Ltd customers or our Trade Outlets, but should be kept to a minimum. Plastic moulded storage tote boxes are in use within the T2 distribution centre, supporting the automated storage and movement of products through our automated DC, secondary packaging should be designed fit firmly inside these totes (where the size and weight of individuals products allows). We also invite our UK-based suppliers to utilise these totes to store our products (one SKU per tote) before delivery to T2. Your Product Manager or Buyer should be the first point of contact for discussions regarding this. • Packaging must be of sufficient design, size and strength to protect the product throughout the supply chain (including transportation) • Packaging must be made of post-consumer recycled materials where practical and cost effective • Packaging must be designed so that it can be easily recycled i.e., that is ideally made from one material. If more than one material is used, they must not be glued or stapled together • Display all necessary labels and barcodes as required • Secondary and tertiary packaging must not have loose fill materials (e.g. polystyrene chips) • Strapping must only be used to stabilise pallet loads, not to wrap individual cartons • This packaging must be the correct size for the product and not have excessive voids added to both this NB. The use of tertiary packaging often indicates excessive packaging, so should be avoided. Tote internal dimensions are as follows: 56.9cm x 36.9cm x 30cm, maximum weight of 25kg 4.2.1 Presentation

Primary packaging must be robust enough for the goods to be fully protected between the supplier and Euro Car Parts Ltd distribution centre; picking, handling and despatch in the Euro Car Parts Ltd distribution centre and ultimately delivery to Euro Car Parts Ltd customers or Trade Outlets.

4.3.1 Presentation

• Packaging must be of sufficient design, size and strength to protect the product throughout the supply chain (including transportation) • Display all necessary labels and barcodes as required • All sharp edges are fully protected, and packaging cannot work loose • Primary packaging carton lids must be taped (not tucked flap) to reduce risk of accidental opening • Primary packaging cartons must be the correct size for the product and not have excessive voids • Outer Polythene bags must be of adequate strength to avoid accidental tearing and spillage of contents and both ends must be sealed • Larger cartons to be fitted with internal blocks to prevent excess movement of the product within the box • Larger cartons to be fitted with internal protection where required to prevent product damage • Fragile / sharp / pointed items to be packed as “mail-order friendly” • Strapping must only be used to stabilise pallet loads, not to wrap individual cartons • Primary packaging labels must be printed on white paper and included the ECP Part Number and an EAN 128 Barcode.

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4.4 Pallets

Must be robust enough for the goods to be fully protected between the supplier and Euro Car Parts Ltd distribution centre; receipt, handling and storage in racking within the Euro Car Parts Ltd distribution centre.

4.4.1 Presentation

• All pallets must be a minimum of Grade B (EPAL) stamped Euro pallets with dimensions of 1200mm x 800mm, with no damage or missing blocks/slats • Pallet height (including pallet) must not exceed 1.2m • Total pallet weight must not exceed 1000kgs • Product must be stacked within the pallet confines unless product dimensions are larger than the pallet (see example of nonstandard equipment details above) • Product safely fixed to the pallet (stretch wrapping is acceptable but must be applied to the pallet loads in a secure manner around the pallet base) • Plastic banding may be used to secure awkward, irregular or upright loads • Double stacking of pallets is only permitted if the load remains secure, products are suitable for double stacking, each pallet is stretch wrapped separately and the stack is then stretch wrapped together • If, as a result of double stacking, loads become unsafe or damage occurs to the product, Euro Car Parts Ltd will refuse the load. Please note that under no circumstance should you pyramid stack your loads.

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4.6 Packaging Labelling

4.6.1 Primary Packaging Identification Label

All primary packs must carry the ECP Number (the 9-digit number assigned by Euro Car Parts Ltd to each SKU) identification label. This must be in a prominent position but not obliterate any important pack wording. Occasionally, Euro Car Parts Ltd may decide to issue exemption to this but this is always by exception. Should you wish to be exempt for special reasons, you should always make initial application via your buyer who will raise this internally and likewise inform you of the outcome. This label must always be printed on plain white paper with black text or incorporated into the design of the primary packaging. The only time a primary packaging identification label is not affixed is when a selling unit is physically too small to fit one (i.e. identification label is bigger than the product). In these instances, the Supplier Team must be contacted, and a decision will be made to either grant the product an exemption or come to a special alternative product identification method. Without exception all secondary & tertiary packaging must carry an identification label. This must be attached to 2 adjacent sides. Limited shelf life goods shipped as cartons for delivery, must list the expiry date on the carton label. This label must always be printed on white paper with black text and include all ECP Part Numbers & Quantities. Tertiary and pallet packaging must also identify single (“S”) and mixed (“M”), shown in the bottom right corner of the diagram below. Single signifies that only 1 SKU is within the pallet, mixed signifies multiple SKUs within the pallet. 4.6.2 Outer Packaging Identification Label

Size of label should be a minimum of 35mm x 35mm, but we recommend 50mm x 50mm.

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5 : Delivery Requirements

5.1 Performance Monitor

All Suppliers are expected to deliver on time and in full as stated on all Purchase Orders raised. All Suppliers will be monitored in line with Euro Car Parts Ltd.’s Key Performance indicators (KPI’s) under these categories:

• Booking Conformance • Delivery Conformance • Presentation Conformance • SKU Conformance • On time and in full (OTIF)

Details of the requirements under each of these headings are contained within this section under the relevant category headings. A record of all non-conformances will be maintained by Euro Car Parts Ltd and will be used as part of the supplier selection process. Any non-conformance is potentially liable for a compensation claim.

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6 : Booking Conformance

6.1 Pre-Delivery procedures, Booking System

**To ensure smooth intake volumes, suppliers are obliged to deliver 24 hours a day, 7 days a week. Suppliers are held fully responsible for any delivery non-conformances that are raised against deliveries made by third party hauliers.

All deliveries to Euro Car Parts Ltd receiving sites must be scheduled at least 48 hours prior to the required delivery date. NB. Different arrangements may be made for short notice ordering in exceptional cases, when pre-agreed with a Purchasing Team Manager.

NB. Giving at least 24 hours’ notice, Euro Car Parts Ltd reserve the right to cancel or re-arrange a booking.

6.3.1 Advance Packing Lists/Delivery Paperwork

6.2 Delivery Booking

Once you have a confirmed delivery slot, you must provide a full electronic packing list by pallet at least 48 hours ahead of the delivery slot, containing: • Number of pallets / cartons • Supplier part number • Euro Car Parts Ltd part number [as advised by Purchasing Team] • Purchase Order number • Supplier Account Code [as advised by Purchasing Team (AAA9999)] • Quantity • Notification of any hazardous / flammable / dangerous product • If any product is identified as above, then a Material Safety Data Sheet must be provided

All delivery bookings must be requested via e-mail to ndcgoodsin@eurocarparts.com. Request must include the delivery address that has been advised by the Purchasing team: • Bookings for T1 and T2 should be emailed to ndcgoodsin@eurocarparts.com • Bookings for ROI DC should be emailed to roigoodsin@eurocarparts.com • Site address should be specified on the delivery paperwork and the delivery itself should also be labelled with the DC Address & Purchase Order Number (See Labelling Requirements in Section 4) • The Euro Car Parts Ltd Booking Reference Number • All packing lists/delivery documents should be attached to this original booking email Euro Car Parts Ltd will endeavour to book deliveries on the Purchase Order due date advised, but Suppliers must recognise that where capacity constraints or exceptional circumstances prevent this, an alternative date and time will be given. Any booking alterations or queries should be directed to:

This must be emailed with your Booking Reference Number in the Subject Line to:

T1 & T2 - ndcgoodsin@eurocarparts.com ROI NDC – roigoodsin@eurocarparts.com

6.4 Introduction of Booking Portal

Email: ndcgoodsin@eurocarparts.com Phone no.: 01827 264515 Fax no.: 0845 900 2796

During 2020 Euro Car Parts Ltd is implementing the use of a cloud-based bookings portal, partnering with our supplier Mercareon. This initiative will reduce waiting times, increase flexibility and further optimize our unloading processes. Further information will follow as this project progresses, but once the full roll-out is completed all suppliers will be expected to move to booking all delivery slots through the portal provided. Further information will be shared with all suppliers in due course. This will be utilized across both the Tamworth, England and Dublin, Republic of Ireland distribution centres.

6.3 Timed Delivery Slots

A suitable time slot will be allocated as a result of the quantity of pallets and quantity of SKU’s advised, so suppliers must ensure that the quantities provided are accurate.

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7 : Presentation Conformance

7.1 Delivery refusal

• Delivered on Non-Euro EPAL Pallets [1200mm x 800mm], unless prior agreement has been obtained from the Goods In Management Team • The pallet count does not match the amount that was supplied during the booking in process • The vehicle is not suitable for dock door unloading and alternative arrangements have not been made or are suitable. • A “yard offload” [curtain side vehicle] delivery is larger than four pallets NB. Due to the nature of receiving checks, damages will not always be identified at the point of unloading. No claims will be upheld against receiving dock signatures; these are all deemed as ‘un-checked’ receipts. Euro Car Parts Ltd will not accept charges from suppliers that have incurred extra costs due to refusals, where refusal is driven by an unsafe load or arrival outside of the allotted time.

In the event of a delivery being refused, it is the responsibility of the supplier to advise the relevant Purchase Team Manager, within 48 hours of refusal, of arrangements to rebook the order and take necessary actions to ensure it is not refused. (See section 14).

7.1.1 Reasons for refusal

Deliveries will be refused if;

• They have not been booked • They arrive prior to or after booked in date / time without prior notification, see Section 6.1 for the acceptable time window. • The quantity being delivered is in excess of the ordered quantity • Incomplete / No Paperwork • There is a potential Health and Safety hazard • Presentation of goods is deemed unacceptable • Goods are damaged or wet • The delivery is incomplete (i.e. only 2 of 4 pallets delivered) • Any product specification or packaging is delivered which differs to that approved by the Euro Car Parts Ltd Buying departments • Goods or packaging, including pallets are not labelled or labelled incorrectly • Euro Car Parts Ltd delivery is not immediately accessible on the vehicle, i.e. delivery blocked on vehicle • The pallets are over height, have an overhang or are overweight, where no prior exemption has been agreed

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8 : Delivery Conformance

8.1 Delivery Times

It is a legal requirement under the Road Traffic Act that Third-Party Motor Liability covers all deliveries. In some circumstances, non-standard vehicles may be accepted but only by prior agreement DC Goods In team.

Euro Car Parts Ltd allow a 1-hour delivery window comprising of 30 minutes prior and 30 minutes post the scheduled delivery time. All suppliers and their third-party hauliers are expected to arrive on site within this timeframe. Any delivery arriving early will be refused entry to the Euro Car Parts Ltd DC and requested to return at the scheduled time. Euro Car Parts Ltd accept that on occasion suppliers can be delayed due to circumstances beyond their control (e.g. road accident). **In such circumstances, suppliers are expected to contact the relevant DC (see Sections 11-12) and advise the reason for the delay and the expected time of arrival. This will enable Euro Car Parts Ltd to adjust daily planning to ensure that suppliers can be unloaded as quickly as possible on arrival. Failure to advise of delays to a delivery will result in its refusal and a fixed cost charge. (See Fixed Compensation Section 14) *Suppliers are held fully responsible for any delivery non-conformances that are raised against deliveries made by their third-party hauliers.

NB. Under no circumstances can deliveries be made using double-decker vehicles.

NB. Curtain Sided vehicles are only permitted to deliver 4 pallets or less, and where a “yard offload” delivery slot has been requested. Euro Car Parts Ltd must have free unrestricted access to its consigned delivery and will not move any pallets to access the delivery.

8.3.2 Driver Dress Code

All delivery drivers must wear safety footwear, steel toe-cap boots to BS EN 345 or BS EN 346 and high visibility clothing, waist coat / vest or jacket to BS EN 471.

8.3.3 Driver behaviour requirements

All Euro Car Parts Ltd sites are strictly no smoking. All delivery drivers must follow the Health and Safety at Work Act 1974 and be responsible for their own actions. Under no circumstances can delivery drivers make personal, racial, sexual or discriminative remarks regarding another person. Drivers may only enter the site under supervision from Euro Car Parts Ltd duly authorised staff and must comply at all times with the Euro Car Parts Ltd security procedures. Drivers are not permitted to carry about their person or in the vehicle, any item that is sold by Euro Car Parts Ltd unless accompanied by the purchase receipt or delivery paperwork. Any vehicle or personnel delivering products to Euro Car Parts Ltd.’s sites will be subject to a search by security personnel when entering or leaving the premises.

8.2 Waiting Charges

Euro Car Parts Ltd will not accept waiting time charges from its suppliers or carriers under any circumstances.

8.3 Arrival on site

8.3.1 Delivery Vehicle Requirements

Vehicles must facilitate rear unloading and MUST be dock leveller suitable.

All trailers are to be in safe working condition with sound floor boarding and suitable for operating pallet moving equipment.

All delivery vehicles must have reverse sounders fitted for all delivery destinations.

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Once vehicle has been parked in designated bay for unloading the Driver of delivering vehicle must surrender all vehicle ignition keys to the dedicated ECP unloader before unloading of the vehicle can commence. Keys will be returned to the vehicle driver once unloading has been fully completed.

Failure to provide appropriate delivery paperwork will result in refusal of delivery unless the delivery paperwork is emailed to the DC within 30 minutes of arrival (see Appendix 4 for the relevant fax numbers).

8.3.6 Accessibility

Drivers must not use mobile phones whilst driving on Euro Car Parts Ltd property.

In addition to the driver’s copy, delivery paperwork must be securely attached by means of self-adhesive document envelope to a delivery unit. This document envelope should be highly visible, easily accessible and under no circumstances is it to be beneath stretch wrap, adhesive tape or other packaging materials.

Drivers must wait in the rest room until the vehicle has been unloaded and they are advised that they may collect their keys and return to their vehicle. Some sites do not have a waiting area, waiting in the vehicle may be permitted, but keys still be surrendered for unloading.

8.3.7 Summary of Delivery Check

Failure to follow these requirements will result in the driver being banned from Euro Car Parts Ltd sites.

The Tipper will perform a summary check against each received delivery:

8.3.4 Registering On Site

• Supplier Name • ASN • Number of pallets

All booked deliveries will be registered at the gatehouse on arrival; parking and bay instructions will then be issued. No unauthorised persons should be within the vehicle when entering a Euro Car Parts Ltd site. Under no circumstances must animals or individuals younger than 18 years of age be brought onto Euro Car Parts Ltd premises. Delivery paperwork is in addition to the pallet manifest, as copy of the ASN/PO is acceptable; the paperwork must detail: Supplier Name, Supplier Code, ASN/PO details, Number of Pallets and each SKU/Qty for each respective pallet. Before entering Euro Car Parts Ltd buildings or working sites, every driver must report to the appropriate booking office of each DC. All drivers must present the delivery paperwork on arrival. At this time, the driver will be advised which bay to park the vehicle on or directed to the designated waiting area. 8.3.5 Delivery Paperwork

• Number of pallet footprints on vehicle • Pallet numbers i.e. 1 of 4, 2 of 4 etc. • Booked in for date and time • Transportation source, (own carrier or firm) • Security tags/seals complete, un-tampered and verified against information from the drivers’ delivery notes • The overall state of the delivery (poor quality or sub-standard pallets will not be accepted and products on such pallets will be refused) • Label and barcode checks

NB. All deliveries will be signed for as un-checked on arrival .

Checking and notification of discrepancies / deviations will take place during the Goods-in receiving check, which may occur at any time up to 24 hours from receipt of the delivery.

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8.3.8 Non-standard equipment

• Product safely fixed to the pallet (stretch wrapping is acceptable but must be applied to the pallet loads in a secure manner around the pallet base) • Plastic banding may be used to secure awkward, irregular or upright loads • Double-stacking of pallets is only permitted if the load remains secure, products are suitable for double stacking, each pallet is stretch wrapped separately and the stack is then stretch wrapped together. If, as a result of double stacking, loads become unsafe or damage occurs to the product, Euro Car Parts Ltd will refuse the load • No overhang is permitted on the pallet, unless by prior arrangement, or the product exceeds the maximum dimensions of the pallet.

Delivery on non-standard equipment, i.e. cages, stillage’s, bespoke crates, bespoke pallets or racks etc. will only be allowed with the prior permission of the Goods In Team Manager and permission will only be given if the nature of the product dictates that it be delivered on non-standard equipment. Euro Car Parts Ltd will periodically review all non standard equipment that has previously been allowed. Such review may result in the permission for the use of non-standard equipment being removed. Any vehicle which cannot go onto a dock door (e.g. 7.5 tonne) must request a “yard offload” booking to prevent potential refusal in busy times. Please note that the stock must be fully accessible using our own equipment and deliveries must not be larger than four pallets. Vans are not suitable for deliveries of more than one pallet. In all cases where vans are used, the load must be immediately accessible for removal by a counterbalance forklift without using additional equipment. • Pallet height (including pallet) must not exceed 1.2m • All pallets must be capable of unloaded without adjustment • Total pallet weight must not exceed 1000kgs • Product must be stacked within the pallet confines unless product dimensions are larger than the pallet (see example of non-standard equipment details above) • All pallet build must produce a safe and secure pallet that can withstand the rigours of distribution 8.3.9 Load Specification Load presentation should conform to the following criteria:

NB: Please note that under no circumstance should you pyramid stack your loads

8.3.10 Carton Deliveries

Carton deliveries can be made into our distribution centres on the basis that the shipments are no larger than ten cartons. • Up to ten loose cartons maybe delivered with each pallet delivery • Each carton must only contain one unique SKU • Suppliers are held fully responsible for any delivery non-conformances that are raised against deliveries made by third party hauliers.

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8.4 Presentation

8.4.1.1 Delivery advice notes

Where more than one ASN/PO is to be delivered at the same time, the stock relating to each ASN must be palletised separately. • Different SKU’s must not be packed in the same cartons • Each carton / pallet must be clearly presented and labelled so it is clear which ASN/PO it applies to • Euro Car Parts Ltd will only accept one SKU per pallet where a minimum quantity of a layer has been purchased. Further pallets may be stacked on top of this pallet, using the same rules as one SKU per pallet and up to a maximum height of 2.0m; however, when scheduling a delivery, a supplier must declare each individual pallet and not the ‘stack’ when providing the pallet quantity • Mixed pallets must contain no more than 5 products per pallet unless, the items have been pre-toted. In this case, each tote on the pallet may contain a different product • (Maximum mix due to height restriction per pallet – up to 20 totes/products).

Each load must have a pallet manifest placed in a Document Enclosed envelope, this should be presented as follows; • Document wallet should be attached to the first pallet • Manifest should list, by pallet, the contents of each pallet; to include the ASN and SKU code and volumes being delivered. • The driver should also present a copy of this manifest to the Goods-in office. Euro Car Parts Ltd personnel will unload palletised stock. Un-palletised stock must be pre-agreed with the Euro Car Parts Ltd management team and may require unloading onto a pallet by the delivery driver. NB. Any special requirements (including side unloading) must be pre-agreed with the receiving sites’ Goods-in Management Team failure to do so may result in the necessary equipment being unavailable and the load being rejected. 8.4.1.2 Unloading Responsibilities

8.4.1 Pallet Labels

All palletised products must be identified using either two A5 Pallet Labels applied to each pallet.

(You may use up to an A4 sized pallet label for mixed product pallet labels), on adjacent sides (Please refer to the labelling section 4). Labels must not be obscured by any binding or other labels and should be attached to the pallets in such a way as they cannot be dislodged during transit. N.B Mixed pallets may only contain up to five different products of less than one layer each further detail regarding labels can be found within section 4 of this manual.

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9 : SKU conformance

9.1 Carton quantities

9.4 OTIF Conformance

9.4.1 On Time and In Full

Each supplied SKU must have a pre-agreed carton quantity and transit dimensions. All products must be delivered to the agreed carton specifications and / or multiples thereof. NB. Any carton that is over 25kg must be labelled in accordance with The Manual Handling Regulations 1992.

Suppliers will also be measured on their ability to deliver the product quantities as originally ordered, the ability to meet their specified lead time and required delivery date as well as line and case fill set against specific targeted KPI’s. Failure to meet KPI’s will be liable for fixed compensation. See Section 14. Information from the OTIF (On Time and In Full) report will be communicated to suppliers as part of their Supply Chain Review meetings.

9.2 Delivery Discrepancies

All shipments must be delivered as one consignment; Euro Car Parts Ltd will not accept the balance of shipments later. Suppliers must deliver the exact quantity of a product advised when booking the delivery slot. Deliveries in excess of the advised quantity will be refused or returned at Euro Car Parts Ltd.’s discretion, leading to a compensation claim to cover the cost of handling. Information relating to a delivery received, but subsequently found to be short will be communicated to the relevant supplier via the Purchase Order management team. All items delivered in excess of order quantities by the supplier must be collected within 31 days of the error being raised, after this period Euro Car Parts Ltd will dispose of the products in a relevant manner. NB. All deliveries will be signed unchecked on arrival. Checking and notification of discrepancies / deviations will take place during the Goods-in receiving check which may occur at any time up to 48 hours. Damaged goods may be refused at Euro Car Parts Ltd.’s discretion and at the supplier’s cost. If a product is rejected the reason will be recorded on the discrepancy notification paperwork. Damages visible at the time of delivery will be communicated to suppliers when the delivery has been fully checked, which may occur at any time up to 48 hours post delivery. Damages not visible at the time of delivery, e.g. product in multiple layers of packaging, will have their movements traced through the DC and the supplier advised accordingly. 9.3 Damages

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10 : Container Presentation

10.1 Container Condition

• Products must be stacked in the container with 2 cardboard dividers across the container and a card layer halfway up the container as in the diagram below. This will prevent load slipping when unloading • The lashing points inside containers should be used to secure loads at intervals in at least 4 points inside the container. This should include the centre and rear of the load as indicated in the diagram • 1½ inch (4cm) webbing should be used as lashing inside the containers. • Maximum load weight of stock (inc. pallet): 1000kg • Maximum pallet height (inc. pallets): 1.2m • One SKU per pallet (prior approval from Euro Car Parts Ltd is needed for mixed pallets) • Double stacking of pallets is only permitted if the load remains secure, products are suitable for double stacking, each pallet is stretch wrapped separately and the stack is then stretch wrapped together. • If, as a result of double stacking, loads become unsafe or damage occurs to the product, Euro Car Parts Ltd will refuse the load. All palletised container deliveries must conform to the following format.

It is the suppliers’ freight forwarder responsibility to ensure that the container is fit to deliver goods and meets all health and safety responsibilities. Dependant on INCOTERMS. Where responsibility is with the Supplier, they must ensure that Euro Car Parts Ltd.’s products are delivered in a satisfactory condition.

10.2 Container Loading

No shipments are allowed to be split across two or more containers. One container, however, could contain more than one ASN. The stuffing sequence within a single container is based on SKU level – each ASN must be loaded together and not split across the container.

The following should be followed when loose loading containers:

• Only cartons of 25KG or less should be loose loaded into containers • The lashing points inside containers should be used to secure loads at intervals in at least 4 points inside the container. This should include the centre and rear of the load as indicated in the diagram • 1½ inch (4cm) webbing should be used as lashing inside the containers • A suitably sized cardboard layer should be placed at the end of the product before the load is strapped to ensure the product does not fall when the doors are opened or when being unloaded. Obscure products that do not stack easily and are difficult to load and unload, must adhere to the following;

• Products should be wrapped in shrink wrap in sets clearly labelled

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11 : Euro Car Parts Ltd Distribution Centres

Euro Car Parts Tamworth, T1 Birch Coppice Business Park, Danny Morson Way, Dordon, Tamworth, Warwickshire, England B78 1SE

Euro Car Parts Tamworth, T2 Birch Coppice Business Park, Danny Morson Way, Dordon, Tamworth, Warwickshire, England B78 1SE

Euro Car Parts Dublin, DC Furry Park, Swords Road, Turnapin Little, Dublin, Ireland D09 T6C1

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12 : Euro Car Parts Ltd Logistics Contact Directory

Main Contacts matrix; Names Phone & Email addresses for T1 and T2:

Bookings:

Email: ndcgoodsin@eurocarparts.com Phone no.: 0182 726 4515 Fax no.: 0845 900 2796 Booking amendments or enquiries regarding a booking Email: ndcgoodsin@eurocarparts.com

Phone no.: 0182 726 4515 Fax no.: 0845 900 2796

Escalation:

Chetan Vyas, Inbound Operations Manager Email: ndcgoodsin@eurocarparts.com

Phone no.: 0182 726 4512 Fax no.: 0845 900 2796

Main Contacts matrix; Names Phone & Email addresses for ROI DC:

Bookings:

Email: roigoodsin@eurocarparts.com Phone no.: 00353 1 8196088 Booking amendments or enquiries regarding a booking Email: roigoodsin@eurocarparts.com Phone no.: 00353 1 8196088

Escalation:

Graham Redmond, Inventory Manager Email: roigoodsin@eurocarparts.com Phone no.: 0035386 1304344

Main Contacts matrix; Names Phone & Email addresses for Purchasing Team:

Escalation: Purchasing Team

Email: buyers@eurocarparts.com Alternatively, you can email your associated buyer directly

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13 : Product Attributes Sheet

13.1 Data requirements

For each SKU supplied Euro Car Parts Ltd require the following data: a template copy for completion is available from the Purchasing Team. Must be emailed to productdata@eurocarparts.com

ECP Part No

9 digit part number, assigned to each individual SKU

Supplier Part Number

Your product part number/ reference code

Product Identification

Either an EAN code or a barcode holding the part number - the identifier must be unique for each product

Description

Brief description of the product

Brand Brand of the Product (if applicable) Minimum Order Quantity (In Eaches) Minimum qty to be ordered (MOQ) Incremental Order Quantity (In Eaches)

Order in Multiples of what quantity. For example, if the minimum order quantity is 100 and Order pack size is 10, order a minimum of 100 and then order in multiples of 10, means 110, 120, 130 etc.

Vendor Pack Quantity

Number of units packed in the Secondary Pack Or Eaches packed in a retail/ wholesale pack

Primary pack Volume (For each)

Volume of the Product in cubic centimetres in its primary pack (most basic pack at each/ single retail qty level)

Data Required Specific to each Product/SKU

Supplier Base Currency

UKL; EUR; USD

Price to Euro Car Parts

price per unit

Pareto Info.

Pareto ranking of the product in the relevant Product Group

if applicable [Possible values: Y/N]

Surcharge Product

Surcharge Supplier Part Number

Your surcharge part number

Surcharge Price to Euro Car Parts

Price per unit

Primary pack LENGTH (For Eaches / Single qty in its Box pack) Primary pack WIDTH (For Eaches / Single qty in its Box pack) Primary pack HEIGHT (For Eaches / Single qty in its Box pack) Primary pack WEIGHT (Including its packaging in single qty/each)

Length of the Product in centimetres

Width of the Product in centimetres

Height of the Product in centimetres

Weight of the Product in grams

It’s a flag to denote if the product contains Volatile Organic compound (VOC) for organic chemicals that have a high vapour pressure at ordinary room temperature. [Possible answers : Y/N/NA]

VOC

Is it ROHS Compliant / CE approved Flag to denote if the product is ROHS compliant. [Possible answers : Y/N/NA]

Control of Substances Hazardous to Health Regulations - Provide us a copy if applicable. [Possible answers : Y/N/NA]

Is it COSHH compliant

Material Safety Data Sheet. [Possible answers : Y/N/NA] NOTE: IF COSHH answered Yes this will have to be “Y” and relevant MSDS Sheets will need to be provided as a pre advised requisite. Attach to your product data sheet. It’s a flag to denote a product whether it’s flammable. Product must have a flammable sign on it. [Possible answers : Y/N/NA] It’s a flag to denote a product whether it is corrosive. Product must have a corrosive sign on it. [Possible answers: Y/N/NA] It’s a flag to denote whether the product is fragile or the packaging is such that the product may get damaged if stacked upon. (E.G. Bulbs, Lamps, Filters, Wiper Blades etc.) [Possible answers: Y/N/NA] It’s a flag to denote a product whether it’s a pressurised container. Product must have an aerosol sign on it. [Possible answers: Y/N/NA] To be provided for goods which are Hazardous goods (mainly covering Consumables, Chemicals, aerosol and Paints). [Please provide the number] Certification if available for crash parts and the certifying body - Provide us a copy of the certificate [Possible answers: Y/N/NA] . If copy provided please mention “copy provided”. It’s a flag to denote whether the product has got a best before date. [Possible answers: Y/N/NA]

MSDS available?

Is it FLAMMABLE?

Is it CORROSIVE?

Data Required for each Product for Compliance and Certification Reasons

Does it have an EXPIRY date

Is it CRUSHABLE

Is it AEROSOL category

UN packaging number

3rd Party Part Certification

Mainly for Body Panels - Specify the material spec and if it is different from the OE Spec. [Possible answers : Y/N/NA]

Material Spec

Applicable for Braking PG. To confirm if the brake discs and drums are R90 approved. Provide us a copy of the certificate. [Possible answers: Y/N/NA] . If copy provided please mention “copy provided”.

R90 Legislation

Applicable to Catalytic Converters. [Possible answers: Y/N/NA]

R103 Type Approval

Applicable to Exhausts only. [Possible answers: Y/N/NA]

Homologated

SHELFLIFE in days

Minimum/ recommended shelf life after the date of receipt

Pallet Length in CM

Length of the Pallet used in centimetres. **ECP require use of a standard Euro Pallet (120cm x 80cm)

Pallet Width in CM

Width of the Pallet used in centimetres. ** ECP require use of a standard Euro Pallet (120cm x 80cm)

Data Required for each Pallet of each Product

Pallet Height in CM

Height of the Pallet used in centimetres. ** Height should not exceed 120cm

Pallet Quantity

Count of the item which can be stacked on a pallet in Eaches/ single qty

Pallet Weight

Pallet weight at full pallet quantity (including weight of pallet)

Number of Layers per Pallet

How many layers of the product can be accommodated on a pallet

Number of Units per pallet layer

How many single qty units fits in a pallet layer

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14 : Fixed Compensation

14.1 Fixed cost recovery

Euro Car Parts Ltd may claim compensation through a fine system to recover all costs and expenses arising from when suppliers fail to conform to the Supplier Standard Conditions of Supply or the Euro Car Parts Ltd Logistics Supplier Manual.

Compensation fine claims are generally raised by the Logistics Operational Management Team, reporting to the Logistics Director. On occasions compensation claims may be raised by other departments within Euro Car Parts Ltd.

14.2 Fixed Compensation Charge Matrix

Subject

Criteria

Compensation

Non-compliance or deviation from; • Company Quality Standards and policies • Legislative requirements • Packaging and labelling • Unauthorised changes to product or instructions

Minimum fee of £100 (per product) plus all associated loss, costs and expenses†

Quality Issues

• Failure to supply safety data sheet to agreed specification between us Applies even when no physical work is required Applies to repeat issues.

• Load Refusal Presentation Conformance; • Goods are damaged on arrival • Load is not safe to unload • Vehicle has not arrived during allocated time slot • Purchase Order number is not immediately accessible on the vehicle • Delivery is incomplete (i.e. only 2 out of 4 pallets arrived) Applies even when no physical work is required Applies to repeat issues.

Minimum fee of £200 per purchase order plus all associated loss, costs and expenses†

NB: Due to the level of checks made at the time of delivery, non-conformities will not always be identified at the point of receipt. Euro Car Parts Ltd reserve the right to notify Suppliers of service issues up to 48 hours post receipt

Goods In/ Delivery Compliance

Pallet Presentation; • EPAL1 Euro Pallet not used

A flat fee of £200 per non-conformance will be charged, even if the delivery has been accepted.

• Height of pallet above 1.2m, or product is overhanging from pallet • Each individual product is not labelled with the Euro Car Parts part number • Delivery is not as per the ASN (pallet/ SKU count etc.)

Minimum fee of £100 for the first inaccurate attribute (per attribute, per product, per launch) (minimum fee of £20 thereafter per attribute, per product + all associated costs and expenses† resulting from the product data issues)

Incorrect Product Data Provided

Supplier fails to provide accurate product data during initial setup or at the request of the Commercial admin team

Administration and Management Fees

Analyst - £350 per day Manager - £1000 per day plus any associated costs and expenses†

Any additional Euro Car Parts Ltd resource /administration / support

Although this list is neither exhaustive or complete, associated costs and expenses may include; • Cost of advertising • Disposal Cost • Correspondence to customers • Returns & disposal costs • Carrier Collections • Travel and accommodation

†Associated costs and expenses

• Warehousing cost • Removal of goods • Management fee • Customer compensation claim

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