W.W. Grainger & McMaster-Carr are two US based MRO (Maintenance, Repair, and Operating) suppliers

Both firms offer several thousand products and stocks 100000 products.

products available online and in print catalogue.

No manufacturing

(only distribution/ retailer )

W.W. Grainger

•Several retail stores throughout

US

•Customer can walk into the

store

•call in an order

•place an order through web

They either

• shipped to the customer

or

• picked by the customer at

store

•9DCs

-Replenish orders

-Fill customer orders

McMaster-Carr

•Concentrated on online

•Lack of retail stores

•Ships almost all orders

•DCs

-order filling

Pre-structural

› Difference in customer needs

› Multi- supplier multi-client system

Uni-structural

› Importance of supply chain decisions in

success

Multi-structural› Different modes of transport

› Reduction of transportation cost

› Timely delivery

Relational› Internal-external factor analysis

› Calculation of Re-order quantity (EOQ)

Out of box› GPS tracking system

› Computer modeling

› EDI

W.W. Grainger

Different delivery modes

› Shipping to customer

› Picked by the customer at stores

More DCs to fulfill both the needs

Location :nearer to different retail shops

to reduce transportation cost

McMaster-Carr

Focused on online orders

Shipment

Large capacity DCs less in number

› to ensure timely delivery

› To cost reduction

› Concentrated towards industrial areas

W.W. Grainger

Feedback from retail stores helps to forecast the demand of various MRO items

Stock should fulfill both retail and online needs

Certainty in demand to some extend

McMaster-Carr

Online ordering

flexible demand

Keep a buffer stock of all items

Ensuring timely delivery

Importance of item (vital)

Availability of item

Demand of the item

Responsibility of suppliers

Depending on the regional demand

Items having special priorities

Valuable items

Availability and durability

Timely delivery

Minimum transportation cost

W.W. Grainger

Large number retail stores and DCs

If single DC cant meet the demand, they can go for another DC

Location of backup should be accessible from different points of demand

McMaster-Carr

Limited DCs

Large inventory

Responsible suppliers

Need of forecast

W.W. Grainger

Various locations will have different order

demands

For vital products lead time should kept

as minimum

Possess a safety shock to meet

emergency condition

forecasting

McMaster-Carr

Less number of DC

Quick reordering

Buffer stock

Responsible suppliers

Integrating both business together is advisable

There is a well established distribution channel already exists

This infrastructure and transportation facilities can be used for both .

It also allows clients to place an order in different ways

It simulates all types of customers

By applying modern techniques they can improve the efficiency of business

Order fulfillment

Quick delivery

Trucks, railways ,cross docking

stock replenishment

Transportation cost reduction

Geographic obstacles

Alternative modes : ships, railways, road