$30 Million in Cost Savings and $300 Million in Purchases Expected Over The
Next 10 Years
CHICAGO and CHARLOTTE, N.C., March 8 /PRNewswire/ -- The BFGoodrich
Company and Grainger today announced that they have signed a 10-year
enterprise agreement that will better enable BFGoodrich to leverage purchasing
activities, streamline procurement procedures and significantly reduce
materials management costs. Under this agreement, Grainger will provide
general industrial hardware products and maintenance, repair and operating
(MRO) supplies estimated at $300 million while working with BFGoodrich to
achieve an estimated $30 million in process and product cost savings over the
10-year period.
"Reducing overall operating costs is a strategic priority in our ongoing
efforts to enhance value for our customers and shareholders," said Marshall
Larsen, President and Chief Operating Officer of the company's Aerospace
segment, which initiated the project. "As a company that has grown rapidly
through multiple acquisitions, our partnering with Grainger is an important
step to leverage our collective purchasing power for common materials.
Managing our supply chain is a critical component of our overall productivity
program, including lean manufacturing and other initiatives to reduce costs,
cut lead times and reduce inventories for our advantage and the benefit of our
customers."
The enterprise agreement provides consolidated sourcing opportunities for
the entire BFGoodrich organization in the United States and Canada to obtain
the best product or service solution at the lowest cost. Grainger services
include customer-specific pricing, Internet expertise, logistics and
accessibility, inventory management, on-site tool crib management, purchasing
and procurement logistics, process improvement measurements, commodity
management and product sourcing. Grainger's nationwide presence and buying
power in the marketplace were also key criteria in its selection.
"While many companies have asked Grainger to provide a single MRO
solution, this is the first opportunity we've had to demonstrate our entire
end-to-end value proposition," said Richard L. Keyser, chairman of the board
and CEO of Grainger. "We are very pleased to be working with BFGoodrich in
this collaborative effort."
BFGoodrich Aerospace, a leading supplier of aerospace systems and
components worldwide with annual sales of $3.6 billion, is the first
BFGoodrich business segment to work with Grainger under the new agreement.
Grainger Consulting Services is currently conducting needs assessments at
several of Aerospace's 70 North American facilities. Based on the findings,
each location will be able to select a purchasing solution from any Grainger
division or business.
The next BFGoodrich business to initiate the full Grainger offering will
be the Engineered Industrial Products segment, a leading manufacturer of
highly engineered products with annual sales of $700 million. The third
BFGoodrich business segment, Performance Materials, with annual sales of
$1.2 billion, will be evaluating this agreement in the near future.
Headquartered in Charlotte, N.C., The BFGoodrich Company has leading
market positions in advanced aerospace systems, performance materials
and engineered industrial products, with 1999 revenues $5.5 billion and
27,000 employees worldwide. For more information, please visit our website
at http://www.bfgoodrich.com .
W.W. Grainger, Inc. (NYSE: GWW), with 1999 sales of $4.5 billion, is the
leading North American provider of maintenance, repair and operating (MRO)
supplies, services and related information to businesses and institutions.
Grainger shares are traded on the New York and Chicago stock exchanges. For
more information please visit us online at http://www.grainger.com .
SOURCE W.W. Grainger, Inc.
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Related links:
http://www.grainger.com
Company News On-Call:
http://www.prnewswire.com/comp/953850.html or fax,
800-758-5804, ext. 953850
CONTACT:
Patricia Meinecke of The BFGoodrich Company,
704-423-7060, or Christine Swiderski of W.W. Grainger, Inc.,
847-535-4094
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