W. W. Grainger, Inc.

Founded in 1927 as an electric motor supplier, W. W. Grainger had, by 2001, evolved into a leading industrial distributor of maintenance, repair, and operation (MRO) components and supplies that kept facilities up and running. Despite having a strong industry position, Grainger faced the challenge of a fragmented MRO industry. Although it was the largest industrial distributor, Grainger had only a 2 percent market share. The five largest industrial distributors together accounted for less than 8 percent of the total market. Grainger's goal was to help customers complete their jobs successfully by providing them the right products and information at the right time. Given that Grainger did not manufacture any products of its own, effective supply chain management was critical to its success.