fulfillment services internal use. this is our footprint today, it is always changing and the...
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Fulfillment ServicesINTERNAL USE
This is our footprint today, it is always changing and the following information is
meant to be used as a reference point, but it should never be looked at as a
roadblock as we have and can adapt our capabilities for the right client ...
15 fulfillment facilities. 11 are LG property.4 are sub contractors.
Los Angeles [2x]
Seattle
Calgary
Oslo
Budapest
Toronto
Buffalo
London
Groningen
Sydney
Hong Kong
Guangzhou
Auckland
Salt LakeCity
sub contactors
LG property
Overview of our facilities abilities
Calgary – CA
Toronto – CA
Carson-LA - US
Mira Loma-LA - US
Salt Lake City - US
Seattle - US
Buffalo – US
London - UK
Groningen - NL
Oslo - NO
Budapest - HU
Guangzhou - CN
Hong-Kong
Sydney - AU
Auckland - NZ
Warehouse acreage [ft²/m²]
5.550515
41.000
3.810-
50.000
4.650-
5.200485
30.000
2.790
27.300
2.535
91.495
8.500- -
2.690250
17.000
1.580
15.050
1.400-
Total warehouse storage capacity [# of pallets]
801.00
0120
2.000
- 185 435 4003.79
0- - 100 370 220 -
AVG # pallets in stock 2025%
40040%
5042%
120060%
- 6032%
25057%
25062%
--
- - 11%
32086%
15068%
-
Overall # of FTE’s 3 19 15 5 9 5 21 8 29 1 16 5 -
Kitting service available
yes yes - yes - yes yes yes yes - - no no no -
Temperature control (airco/heating)
yes yes no no yes no yes no no - - no - no -
Refrigerated zone no no no no no no no no no - - no no no -
Protected area for sensitive goods
yes yes yes yes no no yes yes yes - - no yes no -
Duties paid on: sales value *
Taxes and duties comparison for entry into the EU
there is no sale related to your items
you register in bulk into the EU
your items become communautary goods
your stock is in your country
VAT calculated on stock value
you pay
import VAT but you deduct it afterwards
NEUTRAL
you ‘use’
VAT deferment so you don’t
prefinance VAT
NEUTRAL
VAT
DUTIES
< €22 €22< €150 > €150
NO VAT
NO DUTIES
VAT paid on: sales value * + duties
VAT
DUTIES
< €22 €22< €150 > €150
VAT on Sales Value
N/A
you moveyour stockinto the EU
VAT/dutiesseller’s impact
N/A
Ordersin
you shipthe item
fromNON-EU
you movethe iteminto yourEU stock
VAT / dutiesbuyer’s impact
* + shipping up to 1st place of entry in EU + insurance up to 1st place of entry in EU
+ clearance fee
Duties calculated on stock value *
Lexicon of Mercury abilities:All-in service supported by Mercury:
• Easy integration with your ordering system Client’s orders are transferred to Mercury in real time
• Global orders management tool Client can follow the completion of its orders by facility in real time
• Kit SKU’s management Mercury allows the creation of kits 1 SKU composed of several SKU’s
• Lot / serial number control Mercury links each SKU with its production number in order to provide full
traceability• Real time global inventory
Inventory available 24/7 by facility• Detailed reporting features
Mercury allows creation of customized reports• Returns management incl. restock & refurbish
Depending on clients expectations, Mercury will know how to handle returns• Stock movements control
Allows follow-up of stock movements between facilities• Web-based, friendly interface, accessible from any computer, in any location
Allows the tool to be very user friendly
Who is the LG Fulfillment target client ?
The optimal client:
• Has a stable product range• Has a 4 to 6 months stock turnover• Has a product range of ideally 300 (or less) SKU’s • Has an average 3 to 15 SKU’s per order• Has easy to stock is merchandise
… meaning you can sell / we can fulfill almost everything ! except:• Complex / technical / outsized material• Hazardous goods or products requiring to meet strict storage standards• Fresh / refrigerated products
Mainly food supplements-neutraceuticals sellers but also fashion clients:
Who are LG Fulfillment current clients ?
• Intending to reduce their delivery costs and shorten transit times for cross-boarder shipments
Goods are conveyed in bulk (freight) to one of our hubs
We ship locally where their clients are !
• But could also be a young starting / fast growing company for whom costs
of warehousing would represents a barrier / too big upfront investment
Any prospect in mind ?Refer to the FSQ [Fulfillment Sales Questionnaire] in order to lead your sales speech:
Your prospect does not ‘fit’ in the targeted client profile previously shown ?
refer to PPM & Pricing in order to further analyze the client requirements and see whether we could fulfill his expectations !
FSQ will guide you through a sales speech with a fulfillment prospect. It is not supposed to
be sent flat to any of your prospects !
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