Facts about the loose elements orders LEGO Elements

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Facts about the loose elements orders

LEGO Elements


-Elements’ prices change every year and we only receive access to those prices in January. That is why we cannot share the lists with the communities earlier.

-Elements can be produced in different plants all around the world: Mexico, China, Denmark, Czech Republic.

-The supply of the bricks from different plants to the warehouse in Kladno demands a lot of planning and coordination. The same element can be supplied in a shorter or longer periods of time affecting the time to receive the order.

-If elements are not in stock they will need to be produced. Once the elements are produced in one of the plants around the world, they will be sent to Czech Republic and packed with the rest of your order.

-Chinese communities need a special label called CCC for every single element and Chinese authorities do not accept elements from certain production plants.


The Warehouse


- Once an element is created, regardless of what production plant it is produced it, it is shipped to the warehouse in Kladno

The warehouse in Kladno takes care of most loose elements orders for the whole LEGO company.

-Their activity needs to be organized based on hours of capacity to process, produce, and pack the orders.

-Each month, AFOL orders take around 24% of the warehouse´s capacity.

-There is a need to forecast in advance how many orders might arrive in a year to book the capacity at the warehouse, however, the capacity is limited.

- When an order is placed in the LEGO system, it takes several business days to know if any element cannot be delivered, if elements are on stock or if they need to be produced


LUGBULK GmbH


-From 2019 and going forward, LUGBULK GmbH -Thomas Wesselski´s company- is our partner that not only provide the service of the online ordering system but also places the orders in the LEGO system, takes care of the invoicing, and shipment of the goods.

-LUGBULK GmbH needs to set up accounts for all the communities that sign up and apply for loose elements support, this set up requires information from the community and the ambassadors, which is collected during the sign up/application period.

-We are gathering all the learnings from 2019 to improve as much as possible the processes for 2020.


LUGBULK


-Every year the participation for LUGBULK increase approx. 20% compared to the previous year.

-Almost 80% of the LUGBULK orders coming from the Recognized Communities are placed in the last 2 weeks before deadline. This means that the majority of orders cannot be processed until the deadline.


-As its name says, LUGBULK is a program whereelements are delivered in bulk, this means there is no exact count of the elements ordered, they are instead weighted. This also means that even if there are machines to calculate the amount of bricks, there are errors with a margin of 5%.

-LEGO is a B2B company where this kind of margin doesn´t have a big impact. Of course, the situation is not the same regarding AFOL communities, in which each element counts. We are trying to work on a sustainable solution to avoid this important gap on the elements ordered and received when ordering LUGBULK and Project Support.


- LUGBULK is a very long process as the warehouse cannot process all the orders within a couple ofmonths. The orders need to be distributed and process throughout the whole year, as mentioned previously, due to limited capacity.

- The orders are uploaded in the LEGO system as they are submitted in the online ordering system. The earlier they are placed, the earlier the warehouse can work on them. We recommend you submit your LUGBULK orders as early as possible.

-Which orders will be shipped first depends on a lot of variables like: elements in stock, elements that need to be produced, administrative paperwork for customs, region, etc.

-Not all orders for a same country will be shipped at the same time, nevertheless, we know there areregions that are more complicated than others to ship goods to due to tax reasons, customs, import regulations, etc., therefore the warehouse tries to take care of them at the same period of time. A good example of this is China.


Project Support


-From 2019 and going forward, Project Support will be a seasonal program which will be open from beginning of April to end of July.

-There is a clear difference between LUGBULK and Project Support. While LUGBULK is meant to enlarge community members private collections and used in a private basis to build fantastic MOCs, Project Support is meant for a collective community activity in which members get together to build large MOCs, have interactive activities with the public during events, and learn from each other´s experiences and techniques.

-Due to the large amount of orders for LUGBULK each year, the capacity to process Project Support orders is limited.


Shipping


-LUGBULK GmbH is the one who receives the orders from Kladno and ship them to the communities once payment has been received.

-Customs clearance, tax rules and requirements are different from country to country and are submitted to change in short periods of time. What is working now, might not work next year.

-During the current year, there is a need to investigate and cover all the requirements to ship the goods and this can take some time, especially in 2019 where LUGBULK GmbH took over this task.

-Some countries have very strict laws governing customs regulations, taxes and business compliance, which creates challenges for delivery. These countries include: China, Russia, Ukraine, Serbia and Argentina.

-For some countries, there are so many import taxes that need to be paid to clear the goods that communities cannot afford to receive the support.

Communities can only have goods shipped to an address in the country they are registered on. Forexample, a Community in Mexico, cannot receive a shipment in USA, they need to provide a shipping address in Mexico.


We hope that this information give you some insights on the loose elements orders and help you understand what happens “behind the scenes”. We will try to keep you updated on any changes to the support programs when they happen.

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