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

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

Supplier Manual: Logistics

24