Contract Worth an Estimated $25 Million Over Three Years
LAKE FOREST, Ill., Nov. 4 /PRNewswire/ -- Consorta, Inc., the sixth
largest healthcare group purchasing organization (GPO) in the country,
recently signed a committed, sole-source agreement with Grainger Industrial
Supply, the leading North American distributor of industrial maintenance,
repair and operation (MRO) supplies. The agreement, valued at $25 million in
product purchases over the next three years, is effective as of November 1.
Grainger Industrial Supply, a division of W.W. Grainger, Inc.
(NYSE: GWW), is the recipient of the first, all-inclusive MRO agreement
awarded by Consorta since it became operational in July 1998. Through this
agreement, Consorta participants nationwide will secure economic benefit with
access to Grainger Industrial Supply's 560,000 quality products via
http://www.grainger.com or through Grainger's 370 branch locations. Currently 40% of
all members purchase online with the remaining customer sites moving in the
digital direction in the future. Online purchases and negotiated pricing is
expected to save 3-5% in MRO product costs over the duration of the agreement.
"Grainger Industrial Supply was the right fit for us with their broad
product offering and electronic commerce capabilities coupled with a
nationwide presence," said Darrel Weatherford, vice president, contracting of
Consorta, Inc. "This agreement provides our members with an opportunity to
consolidate their supplier base, streamline their purchases, and realize
significant savings both in product cost and time management."
"We are very pleased that Consorta has selected Grainger Industrial Supply
as its sole-source MRO supplier," said Wes Clark, group president, Grainger.
"Combining technology with one-stop shopping, we will provide the MRO product
solutions for all Consorta members -- any time, any way, anywhere."
Consorta, Inc., headquartered in Rolling Meadows, Ill., was formed through
the consolidation of Catholic Materials Management Alliance, St. Louis, Mo.,
and Sisters of the Sorrowful Mother-Diversified Health Services, Milwaukee,
Wis. Consorta is owned by 13 leading Catholic healthcare delivery systems
with more than 600 acute care, extended care, social service agencies and
other facilities spanning 50 states. Their collective buying power is
$2 billion in contract purchases annually.
W.W. Grainger, Inc. (GWW), with 1998 sales of $4.3 billion, is the leading
North American provider of maintenance, repair, and operating (MRO) supplies,
services, and related information to businesses and institutions. GWW shares
are traded on the New York and Chicago stock exchanges. For more information,
visit Grainger at www. grainger.com.
SOURCE W.W. Grainger
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Related links:
http://www.Grainger.com
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http://www.prnewswire.com/comp/953850.html or fax,
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CONTACT:
Allen Shechtman of W.W. Grainger,
847-535-9094
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