Grainger, Inc. is a broad line, business-to-business distributor of maintenance, repair, and operating (MRO) supplies and other related products and services. More than 5 million customers worldwide rely on Grainger for products in categories such as safety, material handling, and metalworking, along with services like inventory management and technical support. These customers represent a broad collection
of industries, including commercial, government, healthcare, and manufacturing and place orders online, on mobile devices, through sales representatives, over the phone, and at local branches. More than 4,500 suppliers provide Grainger with 1.5 million products stocked in the company's distribution centers (DCs) and branches worldwide. Additionally, Grainger's Endless Assortment businesses offer approximately 26 million products through the Company's expanding drop-ship assortment. Grainger employs approximately 23,000 team members across the globe. For more information on Grainger, visit invest.grainger.com.
The Grainger EdgeSM
The Grainger Edge is our strategic framework that uniquely defines the company by asserting why we exist, how we serve our customers, and how our team members work together to achieve our objectives. Grainger's purpose is to keep the world working, which in turn allows our customers to focus on the core of their businesses and what they do best. This framework also outlines a set of principles that define the behaviors expected from all team members in working with each other, customers, supplier partners and communities as we execute our strategy and create value for shareholders.
2020 Financial Summary
We Keep the World WorkingSM
We relentlessly expand our leadership position by being the go-to partner for people who build and run safe, sustainable, and productive operations.
High-Touch Solutions Model
Advantaged MRO solutions
Differentiated sales and services
Unparalleled customer service
Endless Assortment Model
Expansive product assortment
Innovative customer acquisition and retention capabilities
In 2021, Grainger announced the re-sementation of its business into two reportable segments - High-Touch Solutions (N.A.) and Endless Assortment. Grainger operates with a continuous improvement mindset focused on driving growth while maintaining a prudent cost structure, which in turn creates high-return and strategic investments.
High-Touch Solutions N.A.
Daily Sales Growth %2
2.3% / 3.6%3
Adjusted Operating Margin %2
Includes Cromwell as well as the divested Fabory and China businesses in periods prior to their divestitures.
Reconciliations of the measures referenced in the table above to the most directly comparable GAAP measures are provided on page 13 of this Fact Book.
3.6% is total company, organic daily sales growth and excludes results for Fabory (post June 30, 2020) and Grainger China (post August 21, 2020) in the prior year period to reflect the completed divestitures.
2020 Sales Customer Category
2020 Sales Product Category
Safety and Security
and Test Equipment
3% Power Tools
3% Fluid Power
3% Specialty Brands
2% Power Transmission
4Other category primarily includes revenue from individual customers not aligned to major industry segment, including small businesses and consumers, and intersegment net sales.
W.W. GRAINGER, INC. AND SUBSIDIARIES 2
Both Grainger businesses are focused on creating value for their individual customers, using their superior customer value propositions. The company's strategy has always been defined by its customers' needs, and Grainger uses its High-Touch Solutions and Endless Assortment models to serve customers of all sizes.
Typically, larger businesses
Multifaceted purchasing and processing complexities
Expert product and service depth and breadth
Focused on total cost of ownership
Advantaged MRO Solutions
Deep product and customer expertise
Superior digital platform
Differentiated Sales and Service
Sales and on-site services deliver expertise and help customers manage inventory
Unparalleled Customer Service
Focus on quick and complete orders
No-hassleinvoicing and returns
Leveraging industry-leading position and capabilities to gain share profitably.
Typically, smaller businesses
Straight-forwardproduct and service needs
Focused on streamlined, transparent pricing
Expansive Product Assortment
Extended product range covering broad business categories
Innovative Customer Experience
Efficient, business-focusede-commerce platform
Intelligent analytics capabilities
Continue executing strategic playbook
to drive 20% annual growth.
BEST-IN-CLASS SUPPLY CHAIN | STRONG FINANCIAL POSITION | STRONG CULTURE AND ESG LEADERSHIP | DEEP INDUSTRY AND FUNCTIONAL KNOW-HOW
W.W. GRAINGER, INC. AND SUBSIDIARIES 3
Each business model differentiates itself through different methods of relationship building, order origination, and order fulfillment, but both are founded and supported by Grainger's overall commitment to best-in-class supply chain, deep industry knowledge, solid financials, and strong culture.
HIGH-TOUCH SOLUTIONS 1
Customized services and curated product offering for complex customer needs
Expansive assortment at competitive prices
Sales and Service Representatives
Sales and service representatives and digital solutions drive relationships with purchasers and end users
Digital solutions and marketing
to build relationships
Highly curated product
Embedded in large
information and search
customer purchasing process
Strong technical knowledge across a wide range of product lines helps customers through the purchasing process over the phone or at the branch
Streamlined search and transactional experience
73% of orders
15% of orders
12% of orders
Third Party Partners
Stocked assortment of quality industrial
MRO products with high availability
Expansive assortment across all business-to-business
categories at competitive prices
1 Order origination and fulfillment data provided is for the U.S. High-Touch solutions business only.
W.W. GRAINGER, INC. AND SUBSIDIARIES 4
The High-TouchSolutions model serves customers with complex buying needs, primarily in North America. This model helps Grainger create powerful customer-tailored solutions, deliver a great customer experience, and develop deep customer relationships-whether onsite, at a branch, over the phone, or online. Grainger creates value for customers through its sales and service representatives, technical product support, fulfillment capabilities, inventory management solutions, and other services. In this business in the U.S., Grainger is focused on driving 300-400 basis points of outgrowth versus the market by focusing on the following strategic activities: building advantaged MRO solutions, delivering unparalleled customer service, and offering differentiated sales and services.
Advantaged MRO Solutions
Grainger's scale, knowledge of the marketplace, and deep supplier relationships help the company cultivate an MRO-focused product assortment. Over the last two years, Grainger has worked to remerchandise its product assortment, and through year-end 2020, over $2.8 billion in product revenue has been reviewed. Grainger continues to add to its assortment in a selective manner so customers can quickly and confidently find the solution for their needs.
Deep product and customer expertise
Grainger knows its customers and products better than anyone else. This expertise allows the company to help customers find the right products, services, and solutions to address their problems quickly. Combining this insight with analytics, we develop relevant marketing content and offers to acquire new customers and grow with existing customers.
Superior digital platform
In this ever-connected world, customers crave highly tailored solutions that provide real-time access to information followed by quick delivery of products, which allows them to effectively and efficiently manage their businesses. In 2020, 65% of Grainger's revenue came from online channels and the company was ranked as the 11th largest e-retailer in North America, according to Internet Retailer.1 Through Grainger.com, eProcurement connections, KeepStock solutions, and mobile applications, the company continues to develop online capabilities that promote a personalized, relevant, effortless experience for each customer.
1Internet Retailer ranking is based on 2019 revenue.
W.W. GRAINGER, INC. AND SUBSIDIARIES 5
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