LKQ Corp. Overview

LKQ Corp.

Additionally, it provides alternatives for mechanical and collision replacement parts for vehicles. In addition to remanufactured engines and transmissions, LKQ also sells recycled collision and mechanical products, aftermarket collision and mechanical products, refurbished collision products such as wheels, bumper covers, and lights, and refurbished collision products to collision and mechanical repair shops. Asia, Europe, and the Americas are all places where the company conducts business. Chicago, Illinois, in the US, serves as the headquarters of LKQ.

Donald Flyn established LKQ in 1998 after buying Triplett Automotive Recycling. A variety of wholesale recycled materials companies with locations in Florida, Michigan, Ohio, and Wisconsin came together to form the Company.

Since its founding, LKQ has grown significantly, primarily through more than 220 separate acquisitions of aftermarket, recycled, refurbished, and remanufactured product suppliers and manufacturers as well as specialty auto parts distributors. This growth has also been facilitated by internal development plans. This includes the purchases of Euro Car Parts Holdings in 2011 and Keystone Automotive Holdings in2014, which together now make up a sizeable portion of the company’s European operations and continue to make major contributions to its specialty parts sector.

With operations in the US, Canada, and Mexico, LKQ is one of the biggest wholesale distributors of aftermarket car parts in North America. On the Fortune list, the Company is rated 369th. In 2003, LKQ had a first public offering and raised $91 million before being listed on the NASDAQ. The Company currently has a market value of $10.50 billion. The majority of the 790 various locations that LKQ owns and leases are located in North America and Europe and are essential to its continuous operations. This comprises office space, in addition to warehouses and distribution centers, as well as machinery like delivery vehicles.

Business model of the company.

Customers working in the automobile industry can choose from a variety of aftermarket, recycled, and original products provided by LKQ. These partners include individuals and small to large businesses belonging to the following categories:

• Automotive Repair, which includes small independent operators and dealer-operated repair facilities as well as professional collision and mechanical auto body shops.
• Specialty Automotive, which includes specialty auto repair shops and specialty auto equipment installers, mostly small independent retailers.
• Individual, including do-it-yourself mechanics and hobbyists, auto rebuilders, and resellers
•  Commercial and Distribution, including fleet management and vehicle rental enterprises, as well as warehouse distribution firms.

How does the company provide value to its customers?

LKQ offers its clients value in the following ways:

• Its extensive international distribution network: with the Company operating a large network of distribution centers, parts facilities, and retail outlets, primarily serving customers in the United States, Canada, the United Kingdom, and the Netherlands.
• The strength of its industry relationships: with the Company having developed fruitful business relationships with important participants in the automotive industry, such as auto insurance companies, suppliers, and other industry participants.
• Its extensive product line, which includes aftermarket, recycled, remanufactured, refurbished, original equipment manufacturer (OEM), specialty, and used parts, as well as accessories.
• Its technology-driven processes, which use cutting-edge technologies to analyze and manage its inventory, give salespeople the most recent information on the cost and availability of our products, and otherwise improve it.

Operation processes of the company.

LKQ runs a website at www.lkqcorp.com where it posts details about its components, locations, and business activities. The business also runs an online store at www.lkqonline.com where clients can explore the product selection, make payments, and schedule deliveries. Additionally, LKQ has an internet channel for its self-service Pick Your Part operations and has an eBay site for used and salvage parts.

Through its internal sales team, which it employs on a full-time basis across its wholesale locations and regional call centers we run, LKQ generates its wholesale sales. The company also has call centers for supporting national accounts and insurance adjusters. With its own fleet of drivers making most of the deliveries, LKQ manages its own distribution networks throughout North America and Europe. These networks include wholesale plants, warehouses, and cross dock facilities. The Company occasionally makes use of outside delivery providers. In addition, LKQ runs a variety of self-service locations where clients can find used and trash parts.

Key partners.

To give consumers the best service possible, LKQ collaborates with a variety of businesses and organizations. These associates consist of:

• Distribution and Channel Partners: which include logistics, distribution, and delivery companies that help deliver parts from the Company to its customers, enhancing the Company’s own internal distribution capabilities.
• Supplier and Vendor Partners: which include suppliers of parts, products, and accessories that are resold through the Company’s various sales channels, as well as suppliers of services used across the Company’s four operating segments.
• Technology Partners: These partners offer a range of software and integration services that support the smooth functioning of the company’s sales and distribution operations.

Customer relationship.

Customers can choose from a variety of LKQ’s items via self-service. This includes its online sales platforms, which let clients explore products, pay for them, and schedule deliveries without interacting with LKQ sales representatives. It also includes the network of self-service locations run by the company, where clients can buy parts in person and only deal with salespeople to finish transactions.

The sales teams of LKQ offer individualized service to its clients, consulting with wholesale clients directly to completely address each client’s specific demands. Using drivers who frequently deliver to the same clients and can build trusting connections with the neighborhood repair shops, the company aims to maintain a local distribution presence that enables it to supply daily deliveries as needed by customers.

Through its many websites, LKQ offers a variety of information to clients, including support tools like FAQs, warranty advice, and shipping details. The Company’s social media profiles, which include those on Facebook, Twitter, LinkedIn, and Instagram, also allow it to communicate with its clients directly.

How does the company incur cost?

Costs are incurred by LKQ in connection with the acquisition of components and goods, the administration of its supply chain, the creation of online platforms, the upkeep of its IT infrastructure, the operation of its sales and distribution infrastructure, including the fleet of delivery vehicles, the administration of its partnerships, and the retention of its staff.

In 2015, LKQ reported cost of goods sold of $4.36 billion, which included expenses for the acquisition of parts, freight, and inventory distribution. Selling, general, and administrative costs for the company came to $828.33 million. These costs included marketing and advertising expenses as well as commission and other incentive compensation costs for sales staff.

How does the company generate revenue?

The sale of aftermarket, other new and refurbished products, recycled, remanufactured, and related products and services, as well as the sale of extended warranties, the collection of admission fees from self-service yards, and the collection of processing fees are the main sources of income for LKQ.

2015 saw an increase in LKQ’s yearly revenue to $7.19 billion from the $6.74 billion the company reported in 2014. The Company’s Wholesale-North America sector, which brought in $4.15 billion in sales for the year, was the source of the majority of this income. The Specialty division of LKQ contributed $1.05 billion in revenue, while the Europe segment brought in $2.00 billion.