As part of the 1 LKQ Europe Program, the company has established a new organizational structure that has reduced complexities in its business, implemented a common approach to its systems, tools and processes, and is forming a corporate culture across all country organizations to become an integrated European company, creating even more value to its customers and stakeholders.
Since 2011, LKQ Europe has acquired over 80 individual companies, across more than 20 European countries, each with their own operating systems, products, target customers and cultures. In order to manage the integration of these acquisitions the 1 LKQ Europe Program was initiated in 2019 to transform the operations into one European company, with a streamlined international structure that will enable the organization to truly leverage the benefits of its scale.
“One of our greatest strengths is the diversity within our company and the markets we serve. In order to fully leverage this footprint, we needed to improve the way we work together and reduce the complexities that come with working across borders. We have also been working on redefining and implementing a corporate culture with shared values across all countries and regions – we want all our colleagues to be proud to be part of the LKQ success story. This all supports our vision to shape the Aftermarket of the Future and become the Leading Auto Service System in Europe by offering our customers a great experience” says Arnd Franz, CEO of LKQ Europe.
Strengthening a unique market position
LKQ Europe has a unique market position with an exceptionally large customer reach across Europe. To make best use of that competitive advantage, the 1 LKQ Europe Program has harmonized and centralized key functions to increase process consistency and speed in its operations. One of the key enablers of the program is a common approach to systems, tools and processes. The rollout of a new centralized ERP system will enable LKQ Europe to have best-in-class back office services.
Other important milestones were the establishment of LKQ Europe’s new head office in Zug, Switzerland, the formation of a new Innovation and Service Center in Katowice, Poland, and the introduction of a progressive digital strategy, that will secure industry leading efficiency in processes and a seamless digital experience for our customers.
Forming a common corporate culture for future success
LKQ Europe has already made significant progress towards establishing a common corporate identity and building one culture with a focused and unique mindset. LKQ Europe is now at the start of its journey, striving for even better performance through increased collaboration, connection and cooperation via its aligned operations and corporate teams.
Roadmap to common customer facing solutions
Just as important will be LKQ Europe’s roadmap towards common customer facing solutions. This will complete the setup of the European organization and will ensure our future success with sustainable growth, providing more value to customers and shareholders. Arnd Franz, CEO of LKQ Europe confirms: “The goal of the 1 LKQ Europe Program is to enable us to continuously achieve better results for our customers and stakeholders, in both the short and long-term.”
After two and a half years, the organizational structure elements of the 1 LKQ Europe Program successfully closed at the end of June 2021. With its completion, the company made significant progress in its vision to create a better customer experience across Europe. The streamlined organization affords the opportunity for LKQ Europe to maintain the entrepreneurial and local nature of its operations, while benefitting from the scale and efficiency of doing things in a more harmonized way.
Of course, this is just the start of the journey, and LKQ Europe will continue its efforts to maximize the operational efficiencies and profit potential associated with the new streamlined structure.