Applied Industrial Technologies partners with ORS Nasco

MRO distributor extends scope to industrial supplies
By Susan Avery -- Purchasing, 6/10/2009 9:02:00 AM

Applied Industrial Technologies has entered into a new strategic partnership with ORS Nasco, a wholesaler of tools, safety products, general industrial items and welding supplies. ORS Nasco, a single-source wholesaler, sells exclusively to distributors of safety, welding, construction, oilfield/pipeline and industrial supplies.The partnership expands Applied’s offering of maintenance supplies in areas such as tools and safety with such brands as Rubbermaid, CM Hoists, UnionTool and Maglite. The offering also extends into new product areas such as welding and oilfield/pipeline supplies. In all, the partnership adds more than 80,000 items to Applied’s product basket.In addition, the partnership provides Applied with one-day and two-day delivery on 99% of ORS Nasco inventory. Coordinating efficiencies of ORS Nasco’s eight strategically located U.S. distribution centers with Applied’s logistical infrastructure makes possible these quick delivery times.In an effort to consolidate spending with suppliers and keep costs in line, MRO buyers continue to look to industrial distributors to provide an increasing number of goods and services. Results of a recent Purchasing survey, in fact, show 35% of respondents buying more through distribution today than five years ago. MRO stands for maintenance, repair and operations.“ORS Nasco gives us immediate access to the types of products that many customers have been requesting—general industrial items that round out our product offering and make Applied truly a one-stop shop for industrial purchasing,” says Jeff Ramras, vice president—supply chain management, at Applied in Cleveland, Ohio.With $2.1 billion in annual sales, Applied Industrial Technologies places in the 10th spot on Industrial Distribution magazine’s Big 50 list of industrial distributors for 2009.

Grainger acquires Asia Pacific Brands

Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of Asia Pacific Brands
Jack Keough -- Industrial Distribution, 6/5/2009 1:09:52 PM

Broad-line distributor W.W. Grainger today announced it has signed a definitive agreement to acquire full ownership of its joint venture in India, Asia Pacific Brands India Private Limited, one of India's leading industrial and electrical wholesale distributors.
"We are excited about growing our business in India," said Grainger's chairman and chief executive officer Jim Ryan. "As that economy gets more competitive, Indian companies want efficient and reliable ways to get the quality products they need to keep their facilities running and their employees safe. With annual revenues of approximately $30 million, Asia Pacific will provide us a starting position in a large, high-potential MRO market."
Grainger will contribute an estimated $1.2 million to gain full ownership. Late last year, the company wrote down its investment due to the bankruptcy filing of Asia Pacific's largest supplier.
"Over the past six months, we have helped streamline Asia Pacific's operations, strengthen its management and enhance its supplier base. We will continue to make prudent investments in the business to deepen our presence in India's growing economy," said Bonnie McIntyre, vice president for Grainger's International Market Development. With more than 20 locations and more than 4,000 dealer relationships across India, Asia Pacific Brands plans to go to market under the Grainger brand.

Grainger sales drop 10 percent in May

Grainger's May 2009 sales dropped 10 percent versus May 2008
Victoria Fraza Kickham -- Industrial Distribution, 6/8/2009 1:14:01 PM

Grainger reported today that its May 2009 sales for the United States versus last May dropped 10 percent, largely due to weak demand across all customer end-markets and geographies. Foreign exchange negatively affected sales by about two percentage points.

Sales from pandemic related products as a result of the H1N1 virus outbreak positively affected sales by one percentage point.

Sales in Canada during May dropped 14 percent compared to May 2008. One percent of that drop was reflected in local currency. Grainger's other businesses dropped 17 percent.

The DoAll company gains metalworking customer base

Jack Keough -- Industrial Distribution, 6/10/2009 2:49:26 PM

DGI Supply, a DoAll company, has signed an affiliation agreement with Tool Crib Supply, Bensenville, Ill., allowing DGI to hire all of Tool Crib's employees and take over its metalworking customer base.
DGI Supply plans to combine its inventory with Tool Crib Supply's, while moving all order fulfillment to its Wheeling, Ill. location.
"The combined inventory will improve service levels and with DGI's automated warehousing systems improve efficiency while reducing errors," said Bill Henricks, COO of DoAll.
With 55 locations, DGI Supply ranked 26th on Industrial Distribution's 2009 Big 50 distributors list.

Industrial Distribution Magazines Top 50 Distributors

Jack Keough and Industrial Distributions Mag hits it again with their great update on the Top 50 distributors. Check out Keoughs Korner as well.