SCM SHORT CASE: W.W.

Grainger and McMaster-Carr: Suppliers of industrial products

Neither McMaster-Carr nor W.W. Grainger

W.W. Grainger and McMaster-Carr sell
manufactures any product. McMaster-Carr
maintenance, repair, and operations (MRO)
and W.W. Grainger primarily serve the role of
products. Both companies have printed
a distributor or retailer in the supply chain.
catalogs and Web pages by which orders can
be placed. Both firms offer several hundred thousand
products to their customers supplied by many
W.W. Grainger has several hundred stores
businesses, who may also have their own
throughout the United States. Customers can
suppliers of parts and raw materials.
walk into a store, place an order by phone, or
online. W.W. Graingers’ orders are either Grainger stocks about 200,000 stock-keeping
shipped directly to the customer or are units (SKU), whereas McMaster carries about
collected by the customer at one of its stores. 500,000 units. Grainger also provides many
other products that it does not keep in stock,
McMaster-Carr, on the other hand, distributes
but offers them by having its supplier deliver
almost all its orders directly to customers
directly to the customer.
(though a few customers who live near its
distribution centers may collect orders).
W.W. Grainger and McMaster-Carr’s success is
W.W. Grainger has nine distribution centers largely linked to their strong supply chain
that both replenish stores and fill customer management capabilities.
orders. McMaster-Carr has five distribution
centers from which all of their orders are filled.

DISCUSSION QUESTIONS
1 Draw a diagram of the supply chain for each company. Comment on their differences?
2 What type of supply chain configuration are these examples of?
3 What do you think are the major supply chain design and operational issues that W.W. Grainger
and McMaster-Carr face.