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Canadian Diamond Drillers Association Acklands-Grainger May 30th, 2008.

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Presentation on theme: "Canadian Diamond Drillers Association Acklands-Grainger May 30th, 2008."— Presentation transcript:

1 Canadian Diamond Drillers Association Acklands-Grainger May 30th, 2008

2 AGENDA Introductions –David Comuzzi – District Manager Lower Mainland –Chris Choquette – National Accounts Sales Manager BC Acklands-Grainger Overview Typical MRO Challenges The AGI Approach to MRO

3 AGI - The Industry Leader Founded in 1889 Largest industrial and safety distributor in Canada $700 million+ in revenue 155 branches, 5 DCs coast to coast 2200 dedicated team members 65,000 customers $150 million inventory 100,000+ items in stock Business Unit of W.W. Grainger, $6.5 billion sales

4 The Industry Leader - Customers

5 Best Overall 11% 14% 11% 7% 20% 25% 0%5%10%15%20%25% Other Tenaquip Fastenal HD Supply McMaster-Carr Acklands-Grainger

6 What is Our Strategy? To become the undisputed leader in the distribution of industrial and safety supplies by: Offering the broadest and deepest product range Ensuring these products are available when and where customers need them Making it easy for targeted customers to get these products the way they want Providing a fair price for the product being purchased

7 How Do We Do Things? OUR OPERATING PRINCIPLES Customer Focus. Deliver exceptional service to targeted customers. All team members serve the customer or serve those who do. People Focus. Attract, retain, and develop the right talent. Create a healthy, safe, and open environment for them to thrive. Winning Attitude. Work as a team to compete hard and win. Urgency and Simplicity. Do it now. Keep it simple. Living the Values. Do the right thing, always.

8 General Industrial Safety Tools Fasteners Welding Janitorial AGI CORE COMMODITY GROUPS Industrial Coatings Lighting Electrical Material Handling Fleet/Automotive HVAC


10 INDUSTRY LEADING DC INFRASTRUCTURE DCSizeInventory Edmonton, AB Westward, Edmonton 230,000 Sq. Ft. 56,000 Sq. Ft. $30 million $15 million Richmond Hill, ON100,000 Sq. Ft.$20 million Winnipeg, MB60,000 Sq. Ft.$7 million Saskatoon, SK 70,000 Sq. Ft.$8 million

11 Multiple suppliers –By commodity type –By geographic area –By department Low product standardization Off-contract, rogue buying Excess/obsolete inventory High process costs relative to product costs Significant volume of Unplanned purchases TYPICAL MRO CHALLENGES

12 TOTAL COST OF PROCUREMENT Cost of product ~ 40% Cost of procurement ~ 24% –Selection – sourcing, quotes, POs, approvals –Systems/IT –Payables, reconciliation Cost of inventory ~ 36% –Receiving, put-away –Storage, carrying, insurance –Shrinkage –Obsolescence Cost of Product Cost of Procurement Cost of Inventory

13 Single Source Capability Product Availability backed by Full Service Capability Inventory Management Solutions e-Procurement Continuous Improvement ACKLANDS-GRAINGER VALUE ADVANTAGE

14 Unmatched product Breadth & Depth: Drive vendor consolidation Private brands for exceptional quality and savings Product standardization Supported by national product specialist group: Commodity experts Provide process improvements, onsite training Full technical and repair services: We service what we sell SINGLE SOURCE CAPABILITY

15 $135M in inventory 5 distribution centers, 155 local branches 95% fill rate and 24 hour delivery on 100,000+ in-stock items Same or next day delivery in many markets Ensures product is there when you need it Reduces customer inventories PRODUCT AVAILABILITY

16 Factory trained technicians All work done to manufacturers specifications Your local AGI branch is the contact point for all service requirements. Safety rentals available across Canada Service Link tracking system helps you stay compliant and reduce costs with: –Tracking of equipment and total repair spends –Reduced concerns over regulated calibration and certifications of equipment ACKLANDS - GRAINGER TECHNICAL SERVICES or NTS

17 Smart Dispensing Systems: 24/7 access to supplies Strategic stocking at point of use to reduce travel time Reduced consumption and inventories Automatic reorder process eliminates stock-outs Tracks usage automatically Vendor Managed Inventory (VMI): Onsite inventory management Full Bar-code technology enabled INVENTORY MANAGEMENT SOLUTIONS


19 Fully enabled website: Online ordering for 100,000 in-stock products Custom catalogue and favorites Contract pricing Workflow / order approval Support for 3 rd -party e-Procurement & ERP systems: Ariba, SAP, Oracle, AXAPTA etc. Full support for electronic invoicing and payment: EDI, EFT Level 3 P-Card Compliance (Amex & Mastercard) E-PROCUREMENT

20 Formalized, ongoing process to drive cost savings Quantified & Documented Quarterly Areas of opportunity: Product standardization Product substitution Purchase order and invoice reduction Inventory reduction Repair vs. replace Freight consolidation Product training FORMAL CONTINUOUS IMPROVEMENT (CI)

21 Questions???

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