Key Findings From Study Conducted by Grainger Consulting Services
LAKE FOREST, Ill., Sept. 29-- The recent development of Internet-based procurement solutions has created efficiencies in the exchange of goods and services between buyers and sellers, according to a recent study conducted by Grainger Consulting Services. Grainger Consulting Services is a division of W.W. Grainger, Inc. (NYSE: GWW), a leader in business-to-business Internet commerce.
The results of the study were presented at the SAP Annual North American
Customer Conference, SAPPHIRE® '99. Results show that buyers averaged
between 245 and 400 percent return on their investment to acquire and
implement an e-procurement solution. Sellers analyzed saw a 10 to 15 percent
increase in incremental sales and increased Internet sales of more than 300
percent annually. For details of this study visit
http://sapphire.grainger.com .
"The study findings confirm big manufacturers can achieve greater
efficiency in procurement practices by buying from fewer suppliers over the
Internet. Sellers can achieve cost improvements around their ordering
process. The cost burden on both the buyer and seller sides can be relieved
by using procurement solutions like the SAP B2B Procurement software available
through mySAP.com, the SAP Internet business strategy," said Steve Bowen,
general manager of Grainger Consulting Services.
Nationwide, the total non-production product and service expenditures on
procurement are $1.4 trillion. An estimated 55 percent of this total, or
$770 billion, are spent on MRO supplies and services.
SAP commissioned Grainger Consulting Services to conduct this two-month
study this summer of buyers and sellers of six Fortune 500 companies, which
have been and/or will be utilizing SAP B2B Procurement. Input for this
analysis included on-site client interviews across all functional areas at the
six client locations and in-depth analyses on purchasing, inventory, accounts
payable and sales data. These specific client analyses were then combined
with, and validated by, market data from sources such as Granada Research. In
addition, Grainger Consulting Services leveraged more than seven years of
experience in MRO consulting and its database of client findings to round out
the overall report.
"Grainger Consulting Services is a pioneer in helping buyers and sellers
define and implement digital strategies for MRO supply chain management," said
Torrey Byles, president of San Francisco-based Granada Research. "No other
organization knows the MRO supply chain management and economics at such a
fine level of detail as Grainger Consulting Services," he added.
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 online at http://www.grainger.com or visit Grainger Consulting
Services online at http://www.grainger.com/services/gcs/index.htm.
CONTACT: Allen Shechtman, 847-535-4095, for Grainger Consulting Services.