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

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

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

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

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

  9. NATIONAL PRESENCE WITH LOCAL EXPERTISE

  10. INDUSTRY LEADING DC INFRASTRUCTURE

  11. TYPICAL MRO CHALLENGES • 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

  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 Procurement Cost of Product Cost of Inventory

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

  14. SINGLE SOURCE CAPABILITY • 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

  15. PRODUCT AVAILABILITY • $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

  16. ACKLANDS - GRAINGER TECHNICAL SERVICES or NTS • 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 compliantand reduce costs with: • Tracking of equipment and total repair spends • Reduced concerns over regulated calibration andcertifications of equipment

  17. INVENTORY MANAGEMENT SOLUTIONS • 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

  18. DISPENSING TECHNOLOGY

  19. E-PROCUREMENT • Fully enabled website: • Online ordering for 100,000 in-stock products • Custom catalogue and favorites • Contract pricing • Workflow / order approval • Support for 3rd-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)

  20. FORMAL CONTINUOUS IMPROVEMENT (CI) • 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

  21. Questions???

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