W.W.

Grainger and
McMaster-Carr: MRO
Suppliers
Alejandro Casanueva Hurtado
23611
 W.W. Grainger and McMaster-Carr sell maintenance, repair, and operations
(MRO) products. Both companies have catalogs, as well as web pages through
which orders can be placed W.W. Grainger also has several hundred stores
throughout the United States. Costumers can walk into a store, call in an order,
or place it via the web. W.W. Grainger orders are either shipped to the
customer or picked up by the costumer at one of its stores. McMaster-Carr, on
the other hand, ship almost all its orders (though a few customers near its DC´s
do pick up their own orders). W.W. Grainger has nine DCs that both replenish
stores and fill customer orders. McMaster has DCs from which all orders are
fielded. Neither McMaster or W.W. Grainger manufactures any product,. They
primarily serve the role of a distributor or retailer. Their success is largely linked to
their supply chain management ability.
 Both firms offer several hundred thousand products to their customer. Each firm
stock more than 100,000 products, with the rest boing obtained from the
supplier as needed. Both firms face the following strategic and operational
issues:
How many DCs should be built and
where should they be located?
 According to the history of business and distribution policies that manage,
we do not consider to be constructed more CD as McMaster-Carr has CD
in New Jersey, Los Angeles, Atlanta and Cleveland, and this catalog that
have on the web, it facilitates the delivery of orders and to cover delivery in
the US, plus it until today has not seen the need to open more CD, because
it has an efficient management of its supply chain .
 Meanwhile, Grainger, delivery the next day as well as handle a short period
of time which the customer can wait without much trouble delivering your
order, in addition to the website and the catalog that is in it allows the
product to be without going to the place where the product is physically
located is chosen.
How should product stocking be managed
at the DCs? Should all DCs carry all
products?
 Their products should be categorized as both companies handle various
products, such as motors, tools, circular pumps among others. This is to
facilitate the location and order in the warehouse.
 Not necessarily they must have in store all products, as there are products
with higher and lower demand for parts customers
What product should be carried in inventory
and what products should be left with
supplier?
 The inventory exist in the supply chain due to the mismatch between supply
and demand which has a product, so that the products should be taken
into inventory are forecast to meet the customer demand, so when
customers need it to supply immediately, so the inventory and flow time is
determined by demand, that the case of McMaster-Carr serious products
for maintenance, repair and operations (MRO) materials manufacturing
facilities and trade; and in the case of Grainger industrial products such as
motors, lighting, material handling, fasteners, plumbing, tools and safety
supplies, among others.