DESCRIPTION: Grainger is a distributor of MRO (maintenance, repair, and operations) equipment, based in the US. Most revenues were from the US in 2008, but Grainger was positioning itself to expand its limited global presence. Grainger was increasing the volume of private-label products, which offer higher margins and meet price points. These private label products were sourced primarily from China, by a separate business unit (Grainger Global Sourcing, or GGS) within Grainger. The GGS network, as of 2008, had significant cost inefficiencies. Furthermore, the network was not well-suited for increasing global sales of the private label products. The task in the case is to re-engineer the supply chain to improve efficiencies and better position Grainger for global growth.
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Secondary Tags: Globalization; Globalization of Services
Sales Rank: #451