Grainger Contract — Fresno City Council, February 23, 2023 (part 2 of 3)

OPERATIONS (MRO) SUPPLIES, PARTS, EQUIPMENT, MATERIALS AND

RELATED SERVICES
Attachment B - Category Discounts
Category
Percentage Discount off
list price (%)
Abrasives 7%
Adhesives, Sealants, and Tape 7%
Cleaning 22%
Electrical 23%
Electronics, Appliances, and Batteries 19%
Fasteners 32%
Fleet and Vehicle Maintenance 5%
Furniture, Hospitatlity and Food Service 5%
Hand Tools 14%
Hardware 5%
HVAC and Refridgeration 17%
Lab Supplies 7%
Lighting 22%
Lubrication 7%
Material Handling 15%
Motors 19%
Office Supplies 5%
Outdoor Equipment 12%
Paint, Equipment and Supplies 10%
Plumbing 20%
Pneumatics 11%
Power Tools 11%
Power Transmission 19%
Pumps 7%
Safety 19%
Security 15%
Test Instruments 7%
Welding 10%
(Other) HVAC: Filters 40%
(Other) Emergency Preparedness 19%
Base Discount 5%

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
125 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

Core Lists

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
126 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

B. Price Proposal

1. Provide a price proposal as requested on the Attachment B – Price Page.

Grainger has completed Attachment B – Price Page.

Pricing for the Market Basket will be provided to all Participating Agencies.

b. Functional Alternatives – Provide items which can be substitutes for the corresponding items on the Market Basket which might provide better value but meet the same need. Items in the
Functional Alternatives section of the price page will be evaluated as value-add items for the National Program. Pricing for Functional Alternatives shall be provided to all participating agencies.

All functional alternates will be provided to all Participating Agencies.

i. Using Attachment B, Price Page, complete the columns specified resulting in the proposed discount and net contract price for items offered nationally.

Grainger has completed Attachment B, proposed discount and net contract price for items offered nationally.

ii. Using Attachment B, Price Page, complete the Category Discount page listing the percentage off discount price for each category provided.

Grainger has completed Attachment B category discount page.

iii. How often does the Offeror propose to update this list? Are there certain products that should be updated more frequently than others?

Grainger proposes to update the market basket on an annual basis per contract year.

Upon mutual approval of both parties, this market basket will be active for the full 12 months of the next contract year, and Grainger will not increase the Market Basket pricing for these items during the contract year. In the event a Member Core List Item is discontinued, the parties will find a mutually agreeable replacement product and add such replacement item to the Member Core List.

b. Customized Core List by Agency, individual local and state departments, and regional core lists– In addition to the National Core List, Offerors may provide customized core lists to agencies.

i. Describe Offeror’s ability to provide customized core lists to agencies;

In addition to the Grainger Market Basket (Attachment B), we offer the ability for each

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
127 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

agency to create a custom market basket. To drive additional cost savings while enhancing procurement stability, agencies can select a custom market basket consisting of products the individual agenc y most frequently procures. The Grainger Sales team will work with Agencies seeking to consolidate, standardize and to identify a product list and price.

ii. The number of items Offeror proposes to provide on a customized core list;

Grainger offers the ability for each agency to create a custom market basket unique to individual agency’s needs which cannot be specific to a number of items.

iii. How often does the Offeror propose to update customized core lists;

Grainger proposes to update the custom list on an annual basis per contract year.

Upon mutual approval of both parties this custom list will be active for the full 12 months of the next contract year. Grainger reserves the right to adjust pricing to reflect market conditions. These adjustments may include unforeseen significant increases in supplier’s costs resulting from changes in laws or regulations, impositions of tariffs, currency fluctuations, increases in commodity prices, or other changes in conditions not reasonably foreseeable to Grainger.

iv. Describe any agency size or volume limitations.

There are no agency size or volume limitations to receive a customized core list.

c. Catalog Pricing: Provide pricing for products not included in items 1.a. and 1.b. above, i. Describe how you will price catalog items that are not listed on the Market Basked list. That is, by product category, sub-product category, manufacturer, etc.

Category Discounts: Our offer encompasses significant discounting across 32 MRO categories. These category discounts are applied to Grainger’s Contract Reference Price (CRP). Introduced in 2017, CRP is the product pricing basis for contract customers. CRP is market-based and lower than our historic List Price and thus makes more products attractively priced and simplifies the purchasing process. CRP is stable and only subject to change three times per year. Because CRP is lower than Grainger’s prior List Price, contract category discounts are also lower. It is therefore important to compare the “final” product prices, as a larger discount percentage offered by a competitor may not yield a lower final product price.

For City of Tucson and OMNIA Members, CRP is found on Grainger.com when Members log into their account. The CRP at the time of purchase will be the price to which any contract discounts will be applied. The offered category discounts are fixed through the life of the contract across 32 MRO categories.

Grainger Product Sourcing: The City of Tucson and Participating Public Agencies are able to purchase through Grainger’s Sourcing arm, which reaches out to Grainger’s network of non-catalog suppliers to provide access to over five million additional products and services. The pricing and discounts set forth above do not apply to items

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
128 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

purchased through Grainger’s Sourcing arm. Pricing will be quoted on a case-by-case basis. Grainger Sourcing Terms and Conditions apply to any Sourced purchases. The pricing model for Sourced Products is based on current market conditions and is competitive for spot buy situations on a per order basis.

Please see Exhibit 10 Grainger’s Sourced Product Terms and Conditions.

ii. Disclose the number of items in each product category and in the catalog

Category # Items
Abrasives 12,539
Adhesives, Sealants, and Tape 7,430
Cleaning 13,612
Electrical 61,900
Electronics, Appliances, and Batteries 6,009
Fasteners 86,701
Fleet and Vehicle Maintenance 23,653
Furniture, Hospitality and Food Service 21,751
Hand Tools 35,641
Hardware 40,235
HVAC and Refrigeration 39,436
Lab Supplies 70,035
Lighting 10,255
Lubrication 4,399
Material Handling 87,858
Motors 11,570
Office Supplies 11,400
Outdoor Equipment 8,168
Paint, Equipment and Supplies 53,404
Plumbing 56,416
Pneumatics 29,558
Power Tools 29,215
Power Transmission 36,070
Pumps 12,216
Safety 181,849
Security 56,434
Test Instruments 12,710
Welding 11,394
(Other)
Machining 247,451
Emergency Preparedness 2,368

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
129 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

d. Seasonal or Special Pricing: Describe any programs offered to promote special pricing to Participating Agencies.

Grainger is offering, at a minimum, a custom core list per Participating Public Agency. This list will allow our dedicated sales staff to work directly with each Participating Public Agency to determine special pricing on specific items which may include seasonal products.

2. Describe how services proposed will be priced.

Grainger will price services at 5% off the Contract Reference Price (CRP) as reflected on www.grainger.com at time of transaction (“CRP”). As Grainger adds new services to www.grainger.com and that service has a (CRP), Grainger will offer those services at 5% off the CRP. Grainger will advise the City of Tucson of any new services to be made available under the Master Agreement by providing an email to the Contract Administrator and describing the new service(s). These services will be included as part of the Master Agreement and no written amendment is necessary to include them under the Master Agreement.

3. The City’s expectation is that the proposed pricing shall include delivery to Tucson and Participating Public Agencies. Based on your distribution network, explain the impact of such pricing to the City, Participating Public Agencies residing in large metropolitan areas and Participating Public Agencies residing in rural areas. Propose an optimal solution(s) that would provide Participating Public Agencies with the best pricing including freight costs.

Grainger’s offer for the City of Tucson and OMNIA includes standard pre-paid freight for all catalog orders to all Agencies residing in large metropolitan areas and residing in rural areas.

4. Propose a plan to adjust pricing as market conditions change. The plan must be verifiable and auditable. Identify calculation, formula, components, index, etc.

As stated above in the Price Proposal Section the National Core List net prices will be held firm for 12 months from the contract award date (“Contract Year”). In the event a Core List item is discontinued, the parties will find a mutually agreeable replacement item and add such replacement item to the Core List. Grainger will review the Core List items on an annual basis to assure continued customization and relevance. This data will be based on the information accumulated throughout the term of the contract. A review of this data is critical to ensure that the City of Tucson and Participating Public A gencies continue to receive the most significant savings on the items they purchase the most.

As stated above in the Price Proposal Section Member Core List individual net prices will be held firm from the date of the Member Core List implementation through the balance of the applicable Contract Year. As purchasing tendencies, market conditions or OMNIA Member habits change over the contract term Grainger will work with the OMNIA Member to update the Member Core List items to reflect those changes. Thereafter, the updated Member Core List items’ net prices will be held firm through the applicable Contract Year.

As stated above in the Price Proposal Section products not in the National Core List or in the Customized Core List, Category Discounts will apply to the www.grainger.com Contract Reference Price (CRP) at time of transaction (“CRP”). The CRP may change three times annually, generally on January 1, May 1 and August 1 (“Adjustment Dates”) and prices for

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
130 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

products priced with a Category Discount may increase or decrease as a result. Due to the wide variety of products and the number of products available in Grainger’s catalog and Web site, and the raw materials used in those products, Grainger does not utilize the Consumer Price Index (CPI) as it does not perform with the specificity needed to address price increases.

5. State if pricing is most favorable offered to government agencies. Describe how your firm will ensure this contract will continually offer the best pricing available to Participating Public Agencies.

Grainger’s prices for items sold to Buyer will not exceed the price for the same or similar items sold to other government customers for the same of similar quantities of product in a similar product mix, under the same or similar terms and conditions. Buyer acknowledges, however, that due to the vast numbers of items sold by Seller and Seller’s extensive customer base, as well as the different ways customer’s structure requests for proposals and bids, Grainger cannot assure Buyer that items sold to other customers for products won’t be sold at a better price or discount. Even within the Master Ag reement, since Grainger will provide Customized Market Baskets as noted in 1.b. above, OMNIA Participating Agencies will receive different pricing and discounts on products. This is also true for other customers.

6. Provide details of and propose additional discounts for volume orders, special manufacturer’s
offers, minimum order quantity, free goods program, total annual spend, etc.

Customer Specific Pricing (CSP) – In addition to the Core List Program, Grainger will offer additional competitive discounts and pricing in those cases where the City of Tucson and/or Participating Public Agencies make high volume and/or repetitive product purchases.

7. Provide information on any ordering methods – such as electronic ordering or payment via pCard or EFT – or other criteria which entitle the using agency to additional discounts off of a manufacturer’s price list. If so, please provide the percentage discount.

There is no further product discount than the National Core list, customized core list, category discount off of published CRP price or base CRP discount.

8. Provide your payment terms.

Grainger’s payment terms are NET 30.

9. As stated in the Instructions to Offerors, 7. Discounts, the price(s) herein can be discounted by NA %, if payment is made within day s. These payment terms shall apply to all purchases and to all payment methods.

10. Will payment be accepted via
commercial credit card? √ Yes No
a. If yes, can commercial payment(s) be made online? √ Yes No b. Will a third party be processing the commercial credit card payment(s)? ___Yes √ No
c. If yes, indicate the flat fee per transaction $ NA (as allowable, per Section 4.9 of the MasterCard Transaction Processing Rules).
d. If “no” to above, will consideration be given to accept the card? √ Yes No

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
131 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

11. Does your firm have a City of Tucson Business License? √ Yes No If yes,
please provide a copy of your City of Tucson Business license.

Please see Exhibit 8 Grainger’s City of Tucson Business License.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
132 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

C. Qualifications & Experience

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
133 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

C. Qualifications and Experience

1. Provide a brief history and description of your company.

W.W. Grainger, Inc., founded in 1927, was incorporated in the State of Illinois in 1928.

Grainger is a publicly held Fortune 500 company with shares traded on the New York Stock Exchange (NYSE). Grainger is the leading North American provider of maintenance, repair and operating (MRO) supplies. Grainger’s capabilities include:

 A strategic US distribution network of 250 branches and 14 distribution centers.  An extensive product line of more than 1.7 million products and over $1.3 billion of on- hand inventory
 95% of customers receive next day product delivery; 99.6% of in-stock orders are shipped within 24 hours.
 Proven experience in negotiating and implementing multi-state, complex, nationwide contracts.

Grainger’s investment in exceptional service, value-added programs, eProcurement solutions, KeepStock® inventory management solutions, a technology driven supply chain and physical presence throughout the US enables commercial, government and institutional customers to keep their people safe and facilities well-maintained.

Grainger is the incumbent provider of MRO products and services to the City of Tucson / OMNIA Partners. We remain committed to providing a contract of scope and scale meeting every MRO requirement at a competitive value to government agencies across the US.

2. Provide a statement of your annual sales for the past 3 years.

W.W. Grainger Annual sales: 2018: $11, 200,000 | 2017: $10,424,858,000 | 2016:
$10,137,204,000

3. Highlight experience and strong national presence in the MRO industry.

Grainger holds an advantaged position with its supply chain infrastructure, broad in-stock product offering and deep customer relationships. Grainger helps government agencies, businesses, and institutions across the US to keep their operations running and their people safe. Customers across these sectors want highly tailored solutions with real-time access to information and just-in-time delivery of produc ts and services. Demands for transparency are also increasing as access to information expands. These changes are reflected in how US customers carry out responsibilities in the US and how Grainger directs its investment throughout the US.

US customers continue to migrate to web and el ectronic platforms such as EDI, eProcurement and KeepStock®. Grainger.com provides real-t ime price and product availability, detailed product information and features such as product search and compare capabilities. For customers with sophisticated electronic purchasing platforms, Grainger’s US business utilizes technology that allows these systems to co mmunicate directly with Grainger.com. The US business has an outside and inside sales force to help customers select the right products for their needs and reduce costs by utilizing Grainger as a consistent source of supply. Inventory

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
134 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

management is another area where the US business helps customers be more productive.

Through its technology driven distribution centers, Grainger ships most orders complete with next-day delivery and replenish branches that pr ovide same-day availability. Branches in the US serve the immediate needs of customers in thei r local markets by allowing them to directly pick up items. Branches also allow customers to leverage branch staff for their technical product expertise and search-and-select support. Grainger's US contact center network handles about 73,000 customer interactions per day including approximately 20,000 orders via phone, e-mail and chat.

In the government sector, Grainger understands the values and processes associated with public procurement. Grainger’s Sales Team is specifically dedicated to and focused on government agencies. We understand the budgetary processes that agencies rely on and the competitive and transparency requirements related to acquiring goods and services. We align the compliance strictures of the sector with delivering MRO products and services across the wide span of governmental responsibilities to agencies small and large. With Grainger’s experience and relationship with suppliers, we remain a steadfast partner in delivering expeditious response and proven reliability in emer gencies. In any emergency, large or small, our pricing and services remain as provided in the contract

Grainger’s history with the City of Tucson and OMNIA reflects a relationship of devoted partnership. Our experience under the current agreement shapes much of how we structure offers in the public sector. We embrace the opportunity to continue to serve City of Tucson and OMNIA members while expanding the customer base.

4. Provide the total number and location of sales persons employed by your firm.

Grainger’s total sales persons in the US are 3,800. Of those, 564 are Grainger’s dedicated Government inside and outside sales staff. The table below presents Grainger’s Government sellers by state.

5. Number and location of support centers (if applicable).

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
135 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

Grainger’s strategic branch network includes 250 branches geographically located to provide support to our customers. Please see Exhibit 1 Grainger Branch and DC Locations , for a detailed listing of Grainger branches . Additionally, end users can find the closest branch by inputting their address on Grainger.com.

Grainger has three customer contact centers with over 2,000 Customer Support Associates located in Janesville, WI; Waterloo, IA; and Phoenix; AZ. Grainger contact centers are available 24 hours a day, 7 days a week to assist our customers through phone, chat and email.

6. Describe the qualifications of your sales personnel and technicians.

Sales Personnel | Grainger’s team of 564 dedicated government sellers is located throughout all 50 states and provides full geographic coverage of all state and local government members.

They are specifically trained to manage governm ent contracts and customers. All Grainger’s sellers participate in Public Sector training and are required to certify annually their Government Compliance Training and Grainger’s Code of Ethics. Other training includes Procurement Integrity and industry specific training to understand the challenges of the Public Sector customers.

Across all Grainger disciplines is an under standing and commitment to how government agencies purchase goods and services, how agencies are funded and the compliance and transparency responsibilities that accompany the sector.

Technicians | Grainger’s Field Safety Specialists bring in-field education, experience and expertise to help customers address a wide range of safety and health questions and issues assisting with injury reduction, compliance improvement, risk assess ment, and productivity improvements.

Our teams’ Primary accreditations conferred by the Board of Certified Safety Professionals include:
 Certified Safety Professional (CSP)
 Associate Safety Professional (ASP)
 Safety Trained Supervisor (STS)

Secondary affiliations and designations include:
 Qualified Safety Sales Professional Certification (QSSP, conferred by the International Safety Equipment Association (ISEA))
 Hazard Analysis & Critical Control Points (HACCP, Food Safety Certification)  OSHA-30 hour and OSHA-10 hour
 OSHA 500 and 501 (General Industry and Construction Industry Trainers)  Numerous Supplier and Manufacturer Training

Grainger Onsite Team Members are qualified in inventory management techniques, ordering processes, customer communications, inventory analytics, the breadth of Grainger product and service offerings. Regularly scheduled Onsite Team Members are available to help manage inventory and providing customized, knowledgeable support including unanticipated needs.

Grainger’s Technical Product Support Team is a Tier 2 customer service group dedicated to helping customers identify the right product for their application, troubleshoot issues, and

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
136 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

provide expert advice and knowledge. Our team members have over 1000 years of combined hand on experience in their respective fields, in cluding: Master Electricians, HVAC Service, Master Plumbers, Certified Safety Coordinators, Foundry Shop Foremen, Technical School instructors, City Maintenance Foremen, Manufac turing Assembly, Pneumatics Specialists and Pump Sales Engineers.

7. Provide a listing of key personnel who may be assigned to the City’s contract. Include their title within your organization and the description of the type of work they may perform.

Please identify an executive corporate sponsor who will be responsible for the overall management of the awarded Master Agreement.

Grainger has established a framework to address the City of Tucson and OMNIA contract management. Inquiries are addressed initially by the Member-aligned Grainger seller who engages necessary resources to address customer inquiries. If any matter cannot be resolved by Grainger’s aligned Member seller, the seller will engage their immediate supervisor and escalate the matter to Grainger leadership until the issue is resolved.

Key Personnel for the City and OMNIA’s contract are listed below:

Name Title Role
Benjamin Nichols VP, Government
Executive Corporate Sponsor
The highest level of authority for the
success of Grainger’s government
contracts.

Tim Sweat Regional Sales Vice President,
West Western Region Sellers aligned to Tucson
Kelly Berube Regional Sales Vice President,
South Central
South Central Region Sellers aligned to
Tucson
David Joyce Regional Sales Vice President,
Northeast
Northeast Region Sellers aligned to
Tucson
Cindi Evans Regional Sales Vice President, DA
Partners DA Partners Nationally
Mark Snead Regional Sales Vice President,
Government - COOPS
Primary Oversight to Sr. Government
Sales Manager to ensure contract success
Ron Price Sr. Government Sales Manager Primary, dedicated Point of Contact for the City of Tucson and OMNIA contract
Angela Hoefer Government Account Manager Responsible for day-to-day support of the City’s agencies.

Dan Mueller Contract Life Cycle Manger Responsible to maintain the contract over the life of the contract
Kendra Morman Customer Enablement
Partner with Contracted Customers to
enable the changes needed, in both
organizations, to meet the goals and
objectives of Contracts and Agreements
Raquel Case Marketing
Provide Marketing support to the City of
Tucson and OMNIA Member’s program;
Create collateral to market the City’s and
OMNIA’s program.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
137 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

8. Summarize your experience in providing product and services similar to that outlined in the Scope of Work. Provide a minimum of three references for which you have provided similar products and services. References from other public agencies, particularly municipal governments, are preferred. Please include company name, address, phone, email, and contact person.

9. Please submit any additional information that you feel is applicable to your qualifications and experience.

At Grainger, we are citizens of the communities where we work and live. Within the City of Tucson metropolitan area, we assisted the American Red Cross in installing home fire alarms, supported training initiatives of the Tucson Fire Foundation, provided scholarship opportunities for the Sunnyside School District Foundation and Pima Community College. Through the Grainger Tools for Tomorrow program, we support individual students in their technical training.

Grainger employees assist the Boys and Girls Club - Jim and Vicki Club House, the Special Olympics of Tucson, the Community Food Ba nd, Meals for Wheels and Jobpath programs addressing child care and transportation for those in need. Grainger employees volunteer to Treasure for Teachers. We retain Tucson area businesses to meet the current agreement’s requirements and to assist us in maintaining Grainger facilities and running our business. Our commitment in Tucson is replicated in communities nationwide.

In presenting our most comprehensive competitive offer to date, Grainger aims to maintain the City of Tucson’s and OMNIA’s trust by fulf illing effectively the evolving requirements of the public sector while expanding the customer bas e of those who can benefit by it. Grainger values the opportunities the City of Tucson and OMNIA have afforded us. We will work to maintain and grow the trust by working each day to remain a faithful partner in all circumstances, the ordinary or emergent.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
138 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

Grainger has been the recipient of the following awards over the past 2 years:

2019
 Fortune Most Admired Companies: #1 in Diversified Wholesalers 6th consecutive year
 Grainger was ranked 8th on Barron’s list of the 100 most sustainable U.S. companies.

2018
 #1 on Industrial Distribution’s 2018 Big 50 List (ranks the top ten distributors of industrial products in North America)  Fortunes 2018 World’s Most Admired Companies 5th consecutive year  2018 Best Place to Work for Millennials by The Women’s Choice Award  One of the DEI "Best Places to Work for Disability Inclusion" (press release)  Best Place to Work for LGBTQ Equality by the Human Rights Campaign Foundation (press release)
 Black Enterprise’s 2018 List of Top Executives in Corporate Diversity  Ranked 10th in the Internet Retailer 2018 Top 500 Guide

2017
 Fortune Most Admired Companies: #1 in Diversified
Wholesalers
 HRC Corporate Equality Index 4th consecutive year
 North America Dow Jones Sustainability Index Recognition  #17 on HR Executive Magazine’s Most Admired in HR List  2017 Executive Leadership Council Ambassador Company
 Newsweek.com Top Green Companies in the US 2017
 Best Place to Work for LGBT Equality by the Human Rights Campaign Foundation (4th year in a row)
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CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
139 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

The City of Tucson RFP

Revised 1/2018

CITY OF TUCSON

REQUEST FOR PROPOSAL

REQUEST FOR PROPOSAL NUMBER: 192163
PROPOSAL DUE DATE: APRIL 11, 2019, AT 4:00 P.M. LOCAL AZ TIME PROPOSAL SUBMITTAL LOCATION : Department of Procurement 255 W. Alameda, 6 th Floor, Tucson, AZ 85701

MATERIAL OR SERVICE: MAINTENANCE, REPAIR AND OPERATIONS (MRO)

SUPPLIES, PARTS, EQUIPMENT, MATERIALS AND

RELATED SERVICES

PRE-PROPOSAL CONFERENCE DATE: MARCH 27, 2019

TIME: 2:00 P.M. LOCAL AZ TIME

LOCATION: CITY HALL, 255 W. ALAMEDA, 1 st FLOOR
CONFERENCE ROOM, TUCSON, AZ 85701

PRINCIPAL CONTRACT OFFICER: JENN MYERS, CPPB
TELEPHONE NUMBER: (520) 837-4137
[email protected]

A copy of this solicitation and possible future amendments may be obtained from our Internet site at:
http://www.tucsonprocurement.com/ by selecting the Bid Opportunities link and the associated solicitation number. The City does not mail out Notices of available so licitations via the U.S. Postal Service. Email notifications are sent to those interested offerors w ho are registered with us and who have selected email as their preferred delivery method. To register, please visit www.tucsonprocurement.com, click on Vendors, then click on Vendor Registration. To update an existing record , click on Vendors, click on What's New?, and read the section titled "Notice of Solicitations." You may also call (520) 791-4217 if you have questions.

Competitive sealed proposals for the specified material or service shall be received by the Department of Procurement, 255 W. Alameda, 6th Floor, Tucson, Arizona 85701, until the date and time cited.

Proposals must be in the actual possession of the Department of Procurement at the location indicated, on or prior to the exact date and time in dicated above. Late proposals shall not be considered. The prevailing clock shall be the City Department of Procurement clock.

Proposals must be submitted in a sealed envelope. The Request for Proposal number and the offeror's name and address should be clearly indicated on the outside of the envelope. All proposals must be completed in ink or typewritten. Questions must be addressed to the Contract Officer listed above.

****ALERT****

All visitors to City Hall are now required to show picture identification when going through the security checkpoint in the main lobby. Visitors should plan accordingly.

PUBLISH DATE: MARCH 8, 2019
CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 2 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

INTRODUCTION

The City of Tucson is requesting proposals from qualified and experienced firms to provide MAINTENANCE,

REPAIR AND OPERATIONS (MRO) SUPPLIES, PARTS, EQUIPMENT, MATERIALS AND RELATED SERVICES. The City of Tucson requires a contractor who provides a diverse and extensive supply of MRO products for delivery to various locations in the Tucson metropolitan area and for pickup at local storefronts.

Requirements and qualifications are defined in detail in the Scope of Services Section of this Request for Proposal (RFP). The City seeks a firm that can suppl y the specified services, supplies, parts, equipment and materials and related services.

National Contract

The City of Tucson, as the Principal Procurement Agency, defined in Attachment A, has partnered with OMNIA Partners to make the resultant contract (also known as the “Master Agreement” in materials distributed by OMNIA Partners) from this solicitation available to other public agencies nationally, including state and local governmental entities, public and private primary, se condary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”), through OMNIA Partners’ cooperative purchasing program. The City of Tucson is acting as the contracti ng agency for any other Public Agency that elects to utilize the resulting Master Agreement. Use of the Ma ster Agreement by any Public Agency is preceded by their registration with OMNIA Partners (a “Participating Public Agency”). Attachment A contains additional information about OMNIA Partners and the cooperative purchasing agreement.

OMNIA Partners is the largest and most experienced purchasing organization for public and private sector procurement. Through the economies of scale created by OMNIA Partners public sector subsidiaries, National IPA and U.S. Communities, our participants now have access to more competitively solicited and publicly awarded cooperative agreements. The lead agency contracting process continues to be the foundation on which we are founded. OMNIA Partners is proud to offer more value and resources to state and local government, higher education, K-12 education and non-profits.

OMNIA Partners provides shared services and suppl y chain optimization to government, education and the private sector. As a channel partner with Vizient (f ormally, Novation), OMNIA Partners leverages over $100 billion in annual supply spend to command the best prices for products and services. With corporate, pricing and sales commitments from the Contractor, OMNIA Part ners provides marketing and administrative support for the Contractor that directly promotes the Contra ctor’s products and services to Participating Public Agencies though multiple channels, each designed to promote specific products and services to Public Agencies on a national basis. Public Agencie s benefit from pricing based on aggregate spend and the convenience of a contract that has already been adv ertised and publicly competed. The Contractor benefits from a contract that allows Participating Public A gencies to directly purchase goods and services without the Contractor’s need to respond to additional competitive solicitations. As such, the Contractor must be able to accommodate a nationwide demand for services and to fulfill obligations as a nationwide Contractor and respond to the OMNIA Partners documents (Attachment A).

The City of Tucson anticipates spending approximately $4 million over the full potential Master Agreement term for MRO Supplies and Related Services. While no minimum volume is guaranteed to the Contractor, the estimated annual volume of MRO Supplies and Related Services purchased under the Master Agreement through OMNIA Partners Public Sector is approximately $100 million. This projection is based on the current annual volumes among the City of Tucson, other Participating Public Agencies anticipated to utilize the resulting Master Agreement to be made available to them through OMNIA Partners, and volume growth into other Public Agencies through a coordinated marketing approach between the Contractor and OMNIA Partners.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 3 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

SCOPE OF SERVICES

A. GENERAL REQUIREMENTS

1. QUALIFIED FIRMS: Offerors should meet the minimum qualifications:

a. Have a strong national presence in the MRO supply industry. b. Have a distribution model capable of delivering products nationwide. c. Have a demonstrated sales presence.
d. Be able to meet the minimum requirements of the cooperative purchasing program detailed herein.
e. Be able to provide the full range of products, equipment, parts, materials and services to meet the demands of the City and all agencies that opt to participate in the cooperative purchasing program with the City.

2. USAGE REPORT: The Contractor shall provide an electronic copy of a usage report upon request to the Agency Department of Procurement. The report shall provide complete information on the items purchased under this Contract. The Contractor should be able to provide a usage report by department. At a minimum for each item sold, the report should list the manufacturer name, model number, part number, item description, quantity sold, and total spend by department, division, ordering entity, etc.

3. EQUIPMENT/RECALL NOTICES: In the event of any recall notice, technical service bulletin, or other important notification affecting equipment purchased from this contract, a notice shall be sent to the Contract Representative. It shall be the responsibility of the contractors to assure that all recall notices are sent directly to the agencies Contract Representative.

4. WAREHOUSING, DISTRIBUTION AND SALES FACILITIES: The product specified in this solicitation is dependent upon an extensive manufacturer-to-customer supply chain distribution system. To be considered for award, each potential contractor is r equired to provide proof of an extensive distribution system.

5. DELIVERY: For City of Tucson purchases, MRO supplies shall be delivered to various City of Tucson stores locations and non-stores locations. All deliveries shall be made Monday through Friday from 8:00 a.m. to 3:00 p.m., Arizona Standard Time.

6. CATALOGS: Within 10 days after contract award, Contractor must submit complete price lists and catalogs of their product line in hard copy or on CD. Upon request from a using agency, Contractor shall provide, at no cost, these catalogs and price lis ts. An accessible public website that contains a downloadable catalog and price list or an interactive web catalog and price list maybe provided in lieu of the above hard copy requirement.

7. WARRANTY: Offeror shall warrant that all equipment and parts furnished in their offer are newly manufactured and free from defects in material and workmanship for no less than one (1) year from the date the equipment is delivered or installed. Warranty shall also guarantee accepted trade standards of quality, fitness for the intended uses, and conformance to promises or specified specifications. No other express or implied warranty shall eliminate the vendor’s liability as stated herein.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 4 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

B. PRODUCT REQUIREMENTS:

1. PRODUCTS: A complete and comprehensive line of quality made MRO supplies to support the daily maintenance, repair and operations functions of the agency. The categories include but are not limited to the following.

a. Motors and Power Transmission- General, Definite Purpose and HVAC motors, gear motors, bearings, V-belts and accessories.

b. Electrical Supplies – Distribution, controls, wire, cable, voice & data and supplies.

c. Lighting – Lamps, ballasts, fixtures, task lighting, flashlights and batteries.

d. Tools – Hand, power, outdoor and automotive tools and tool storage.

e. Measuring Tools & Test Instruments – Calipers, gauges, inspection, micrometers and multimeters.

f. Pneumatic – Pneumatic tools and system components, air compressors and hydraulics.

g. Machining and Cutting Tools – Drill bits, taps, dies, blades, counterbores, countersinks and abrasives.

h. Material Handling, Storage and Packaging – Ladders, hoists, shelving, storage, furniture, packaging, casters, cart, trucks and drums.

i. Welding – Welding equipment and supplies.

j. Fasteners and Adhesives – Nuts, bolts, washers, screws, hooks, flat stock, raw materials (metal, rubber, plastic), glue and cement.

k. Lubricants, Sealants and Paint - Grease, oil, penetrates sealants, caulk and paint.

l. Safety and Security Supplies – Spill containment, storage, fire protection, person protective equipment, instrumentation, signs, labels, tags and security.

m. Cleaning Equipment and Supplies – Chemicals, equipment, restroom, paper, waste containers, cleaning.

n. HVAC Supplies – Controls, heaters, air conditioning, air treatment, fans, ventilators and blowers.

o. Pumps and Plumbing – Submersible, centrifugal, water syst em and positive displacement pumps, pipe, valves, fittings, heaters, coolers, filtration and faucets.

p. Emergency Preparedness – Sandbags, first-aid supplies, disaster recovery products etc.

q. Other Categories

2. CURRENT PRODUCTS: All products being offered in response to this solicitation shall be in current and ongoing production; shall be formally announced for general marketing purposes; shall be a model or type currently functioning in a user (paying customer) environment and capable of meeting or exceeding all specifications and requirements set forth in this solicitation.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 5 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

3. DEFECTIVE PRODUCT: All defective products shall be repl aced and exchanged by the Contractor.

The cost of transportation, unpacking, inspection, re-packing, re-shipping or other like expenses shall be paid by the Contractor. All replacement products mu st be received by the City within seven (7) days of initial notification.

4. PRICING: Prices/discounts shall remain firm and will include all charges that may be incurred in fulfilling requirement(s) for the twelve-month period following contract award. Where applicable, pricing shall be determined by applying Offerors discounts to the prices listed on their manufacturer’s price lists, retail price sheets, catalogs or by utilizing the reduced net pricing schedule.

5. SALES PROMOTIONS: In addition to decreasing prices for the balance of the Contract term due to a change in market conditions, a Contractor may conduct sales promotions involving price reductions for a specified lesser period.

C. SERVICE REQUIREMENTS: The City is interested in evaluating the following categories of value-add services for inclusion in this contract. The categories include, but are not limited to, the following.

1. Sourcing:

1. from non-catalog suppliers,

2. of line card extensions of catalog suppliers,

3. for custom products, and

4. for OEM repair parts and accessories.

2. Software Punch Out: The capability of your electronic orderi ng system to interface with an agencies inventory software system.

3. Installation, Repair, Maintenance and Turn-Key Solutions and Services: The ability to provide installation, repair, maintenance and turn-key solutions and services through Contractors business units, authorized manufacturer’s facilities or other avenues.

4. Inventory Solutions: Provide inventory management solutions for stock rooms, warehouses, mobile service vehicles, emergency preparedness supplies, and supply vending machines. Consulting and analysis solutions are also desirable.

5. Small Business Program: The ability to incorporate small business enterprises into your distribution, sales and product offerings.

6. Green/Sustainability Program:
a. Policies: Efforts and policies pertaining to green and sustainability. b. Products: Impact on product offerings.
c. Distribution: Impact in distribution.
d. Recycling of Lamps: The ability to recycle lighting and electronic products. e. Lighting and Energy Audits: The ability to perform lighting and energy audits. f. Certifications: The industry recognized certifications and standards obtained.

7. Training & Education: The ability to provide on-site and/or online training and educational programs/seminars.

8. Customer Support Services: The policies on replacements, returns, restocking charges, after hours service, after sales support, out of stock, order tracing, technical feedback, quality assurance for orders and drop shipments.

9. Other Services: Other value-add services not included in above categories.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 6 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

INSTRUCTIONS TO OFFERORS

1. DEFINITION OF KEY WORDS USED IN THE SOLICITATION:

For purposes of this solicitation and subsequent contract, the following definitions shall apply:

City: The City of Tucson, Arizona
Contract: The legal agreement executed between the City and the Contractor/Consultant. The Contract shall include this RFP document incorporated herein by reference, all terms, conditions, specifications, scope of work, Amendments, the Contractor’s offer and negotiated items as accepted by the City.

Contractor/Consultant: The individual, partnership, or corporation who, as a result of the competitive solicitation process, is awarded a contract by the City.

Contract Representative: The City employee or employees who have specifically been designated to act as a contact person or persons to the Contractor, and is responsible for monitoring and overseeing the Contractor's performance under this Contract.

Director of Procurement: The contracting authority for the City, authorized to sign contracts and amendments thereto on behalf of the City.

May: Indicates something that is not mandatory but permissible.

Offeror: The individual, partnership, or corporation who submits a proposal in response to a solicitation.

Shall, Will, Must: Indicates a mandatory requirement. Failure to meet these mandatory requirements, if they constitute a substantive requirement, may, at the City’s sole discretion, result in the rejection of a proposal as non-responsive.

Should: Indicates something that is recommended but not mandatory. If the Offeror fails to provide recommended information, the City may, at its sole option, ask the Offeror to provide the information or evaluate the proposal without the information.

2. PRE-PROPOSAL CONFERENCE: If scheduled, the date and time of a Pre-Proposal conference is indicated on the cover page of this document. Attendance at this conference is not mandatory. Written minutes and/or notes will not be available, therefore attendance is encouraged. If an Offeror is unable to attend the Pre-Proposal Conference questions may be submitted in writing. Offerors are encouraged to submit written questions, via electronic mail at least nine days prior to the Request for Proposal due date to the Contract Officer listed above. The purpose of this conference will be to clarify the contents of this Request for Proposal in order to prevent any misunderstanding of the City's position. Any doubt as to the requirements of this Request for Proposal or any apparent omission or discrepancy should be presented to the City at this conference. The City will then determine the appropriate action necessary, if any, and may issue a written amendment to the Request for Proposal. Oral statements or instructions will not constitute an amendment to this Request for Proposal.

3. INQUIRIES: Any question related to the Request for Proposal shall be directed to the Contract Officer whose name appears above. An offeror shall not contact or ask questions of the department for whom the requirement is being procured. The Contract Officer may require any and all questions be submitted in writing. Offerors are encouraged to submit written questions via electronic mail at least nine days prior to the proposal due date. Any correspondence related to a solicitation should refer to the appropriate Request for Proposal number, page and paragraph number. An envelope containing questions should be identified as such, otherwise it may not be opened until after the official proposal due date and time.

Oral interpretations or clarifications will be without legal effect. Only questions answered by a formal written amendment to the Request for Proposal will be binding.

4. AMENDMENT OF REQUEST FOR PROPOSAL: The Offeror shall acknowledge receipt of a Request for Proposal Amendment by signing and returning the document by the specified due date and time.

5. FAMILIARIZATION OF SCOPE OF WORK: Before submitting a proposal, each offeror shall familiarize itself with the Scope of Work, laws, regulations and other factors affecting contract performance. The Offeror shall be responsible for fully understanding the requirements of the subsequent Contract and otherwise satisfy itself as to the expense and difficulties accompanying the fulfillment of contract requirements. The submission of a proposal will constitute a representation of compliance by the Offeror. There will be no subsequent financial adjustment, other than that provided by the subsequent Contract, for lack of such familiarization.

6. PREPARATION OF PROPOSAL:

A. All proposals shall be on the forms provided in this Request for Proposal package. It is permissible to copy these forms as required. Facsimiles or electronic mail proposals shall not be considered.

B. At a minimum, your proposal should include the signed Offer and Acceptance form, signed copies of any solicitation amendments, completed Price Page and your response to all evaluation criteria.

C. The Offer and Acceptance page shall be signed by a person authorized to submit an offer. An authorized signature on the Offer and Acceptance page, Proposal Amendment(s), or cover letter accompanying the proposal documents shall constitute an irrevocable offer to sell the good and/or service specified herein. Offeror shall submit any additional requested documentation, signifying intent to be bound by the terms of the agreement.

D. The authorized person signing the proposal shall initial erasur e, interlineations or other modifications on the proposal.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 7 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

E. In case of error in the extension of prices in the proposal, unit price shall govern when applicable.

F. Periods of time, stated as a number of days, shall be in calendar days.

G. It is the responsibility of all offerors to examine the entire Request for Proposal package and seek clarification of any requirement that may not be clear and to check all responses for accuracy before submitting a proposal. Negligence in preparing a proposal confers no right of withdrawal after due date and time.

H. The City shall not reimburse the cost of developing, presenting, submitting or providing any response to this solicitation.

I. Offeror must list any subcontractors to be utilized in the performance of the services specified herein. For each subcontractor, details on respective qualifications must be included.

7. PAYMENT DISCOUNTS: Payment discount periods shall be computed from the date of receipt of the material/service or correct invoice, whichever is later, to the date City’s payment warrant is mailed. Unless freight and other charges are itemized, any discount provided shall be taken on full amount of invoice. Payment discounts of twenty-one calendar days or more shall be deducted from the proposed price in determining the price points. However, the City shall be entitled to take advantage of any payment discount offered by a vendor provided payment is made within the discount period. The payment discount shall apply to all purchases and to all payment methods.

8. TAXES: The City of Tucson is exempt from federal excise tax, including the federal transportation tax.

9. PROPOSAL/SUBMITTAL FORMAT: An original and 9 copies (10 total) of each proposal should be submitted on the forms and in the format specified in the RFP. Offerors shall also submit one electronic copy of the proposal on cd, disc or zip disc in MS Office 2010 or .pdf format. Any confidential information shall be submitted on a separate cd, disc or zip disc. The original copy of the proposal should be clearly labeled "Original" and shall be single-sided, three hole punched and in a binder. The material should be in sequence and related to the RFP. The sections of the submittal should be tabbed, clearly identifiable and should include a minimum of th e following sections: the completed Offer and Acceptance Form, all signed Amendments, a copy of this RFP document and the Offeror’s response to the Evaluation Criteria including the completed Price Page. Failure to include the requested information may have a negative impact on the evaluation of the offeror's proposal.

10. EXCEPTIONS TO CONTRACT PROVISIONS: A response to any Request for Proposal is an offer to contract with the City based upon the contract provisions contained in the City’s Request for Proposal, including but not limited to, the specifications, scope of work and any terms and conditions. Offerors who wish to propose modifications to the contract provisions must clearly identify the proposed deviations and any proposed substitute language. The provisions of the Request for Proposal cannot be modified without the express written approval of the Director or his designee. If a proposal or offer is returned with modifications to the contract provisions that are not expressly approved in writing by the Director o r his designee, the contract provisions contained in the City’s Request for Proposal shall prevail.

11. PUBLIC RECORD: All proposals submitted in response to this Request for Proposal shall become the property of the City and shall become a matter of public record available for review subsequent to the award notification.

12. CONFIDENTIAL INFORMATION: The City of Tucson is obligated to abide by all public information laws. If an Offeror believes that any portion of a proposal, offer, specification, protest or correspondence contains information that should be withheld, a statement advising the Contract Officer of this fact should accompany the submission and the information shall be so identified wherever it appears. The City shall review all requests for confidentiality and may provide a written determination to designate specified documents confidential or the request may be denied. Price is not confidential and will not be withheld. If the confidential request is denied, such information shall be disclosed as public information, unless the offeror submits a formal written objection.

13. CERTIFICATION: By signature on the Offer and Acceptance page, solicitation Amendment(s), or cover letter accompanying the submittal documents, Offeror certifies:

A. The submission of the offer did not involve collusion or other anti-competitive practices.

B. The Offeror shall not discriminate against any employee or applicant for employment in violation of Federal or State law.

C. The Offeror has not given, offered to give, nor intends to give at any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special discount, trip, favor, meal or service to a public servant in connection with the submitted offer.

D. The Offeror hereby certifies that the individual signing the submittal is an authorized agent for the Offeror and has the authority to bind the Offeror to the Contract.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 8 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

14. WHERE TO SUBMIT PROPOSALS: In order to be considered, the Offeror must complete and submit its proposal to the City of Tucson Department of Procurement at the location indicated, prior to or at the exact date and time indicated on the Notice of Request for Proposal page. The Offeror’s proposal shall be submitted in a sealed envelope. The words “SEALED PROPOSAL” with the REQUEST FOR PROPOSAL TITLE, REQUEST FOR PROPOSAL NUMBER, PROPOSAL DUE DATE AND TIME and OFFEROR’S NAME AND ADDRESS shall be written on the envelope.

15. LATE PROPOSALS: Late proposals will be rejected.

16. OFFER AND ACCEPTANCE PERIOD: In order to allow for an adequate evaluation, the City requires an offer in response to this solicitation to be valid and irrevocable for ninety (90) days after the proposal due date and time.

17. WITHDRAWAL OF PROPOSAL: At any time prior to the specified solicitation due date and time, an offeror may formally withdraw the proposal by a written letter or electronic mail from the Offeror or a designated representative. Telephonic or oral withdrawals shall not be considered.

18. DISCUSSIONS: The City reserves the right to conduct discussions with offerors for the purpose of eliminating minor irregularities, informalities, or apparent clerical mistakes in the proposal in order to clarify an offer and assure full understanding of, and responsiveness to, solicitation requirements.

19. TAX OFFSET POLICY: If applicable, in evaluating price proposals, the City shall include the amount of applicable business privilege tax, except that the amount of the City of Tucson business privilege tax shall not be included in the evaluation.

20. CONTRACT NEGOTIATIONS : Exclusive or concurrent negotiations may be conducted with responsible offeror(s) for the purpose of altering or otherwise changing the conditions, terms and price of the proposed contract unless prohibited.

Offerors shall be accorded fair and equal treatment in conducting negotiations and there shall be no disclosure of any information derived from proposals submitted by competing offerors. Exclusive or concurrent negotiations shall not constitute a contract award nor shall it confer any property rights to the successful offeror. In the event the City deems that negotiations are not progressing, the City may formally terminate these negotiations and may enter into subsequent concurrent or exclusive negotiations with the next most qualified firm(s).

21. VENDOR APPLICATION: Prior to the award of a Contract, the successful offeror shall register with the City’s Department of Procurement. Registration can be completed at http://www.tucsonprocurement.com/ by clicking on Vendor Services. Please note that email notifications of newly published solicitations and amendments will be provided to those vendors that select email as their preferred delivery method in their vendor record.

22. CITY OF TUCSON BUSINESS LICENSE: It is the responsibility of the Contractor to have a City of Tucson Business License throughout the life of this contract or a written determination from the City's Business License Section that a license is not required. At any time during the contract, the City may request the Contractor to provide a valid copy of the business license or a written determination that a business license is not required. Application for a City Business License can be completed at http://www.tucsonaz.gov/etax. For questions contact the City's Business License Section at (520) 791-4566 or email at [email protected].

23. UPON NOTICE OF INTENT TO AWARD: The apparent successful offeror shall sign and file with the City, within five (5) days after Notice of Intent to Award, all documents necessary to the successful execution of the Contract.

24. AWARD OF CONTRACT: Notwithstanding any other provision of the Request for Proposal, the City reserves the right to:
(1) waive any immaterial defect or informality; or
(2) reject any or all proposals, or portions thereof; or (3) reissue the Request for Proposal.

A response to this Request for Proposal is an offer to contract with the City based upon the terms, conditions and Scope of Work contained in the City's Request for Proposal. Proposals do not become contracts unless and until they are executed by the City's Director of Procurement and the City Attorney. A contract has its inception in the award, eliminating a formal signing of a separate contract. All of the terms and conditions of the contract are contained in the Request for Proposal, unless any of the terms and conditions are modified by a Request for Proposal amendment, a Contract Amendment, or by mutually agreed terms and conditions in the Contract documents.

25. PROPOSAL RESULTS: The name(s) of the successful offeror(s) will be posted on the Procurement Department’s Internet site at http://www.tucsonprocurement.com/ upon issuance of a Notice of Intent to Award or upon final contract execution.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 9 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

26. PROTESTS: A protest shall be in writing and shall be filed with the Director of Procurement. A protest of a Request for Proposal shall be received at the Department of Procurement not less than five (5) working days before the Request for Proposal due date. A protest of a proposed award or of an award shall be filed within ten (10) days after issuance of notification of award or issuance of a notice of intent to award, as applicable. A protest shall include:

A. The name, address, and telephone number of the protestant; B. The signature of the protestant or its representative; C. Identification of the Request for Proposal or Contract number; D. A detailed statement of the legal and factual grounds of protest including copies of relevant documents; and E. The form of relief requested.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 10 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

PROPOSAL EVALUATION REQUIREMENTS

I. PROPOSAL EVALUATION CRITERIA – (listed in relative order of importance)

A. Method of Approach
B. Price Proposal
C. Qualifications & Experience

II. REQUIREMENTS SPECIFIC TO EVALUATION CRITERIA: The narrative portion and the materials presented in response to this Request for Proposal should be submitted in the same order as requested and must contain, at a minimum, the following:

A. Method of Approach

1. Provide a response to the national program.
a. Include a detailed response to Attachment A, Exhibit A, OMNIA Partners Response for National Cooperative contract. Responses should highlight experience, demonstrate a strong national presence, describe how offeror will educate its national sales force about the contract, describe how products and services will be distributed nationwide, include a plan for marketing the products and services nationwide, and describe how volume will be tracked and reported to OMNIA Partners.
b. The successful offeror will be required to sign Attachment A, Exhibit B, OMNIA Partners Administration Agreement. Offerors should have any reviews required to sign the document prior to submitting a response. Offeror’s response should include any proposed exceptions to the OMNIA Partners Administration Agreement.
c. The successful offeror will be required to fill out Exhibit F – Federal Funds Certification and Exhibit G – New Jersey Business Compliance in its entirety.

2. Product

a. Provide a detailed written response illustrating how the products offered will meet the requirements of this solicitation. Offerors shall provide the proposed product lines that will meet the Product Requirements of this solicitati on. Offerors shall identify and describe their MRO categories. For each proposed category, describe in detail and provide at a minimum the following types of information:

1. Identification and description of product categories offered

2. Identification and description of sub categories

3. Identification and description of manufacturers within each sub category
b. What is the total number of products offered in your catalog? Are all catalog products stocked in your distribution warehouses?
c. How are green products identified in your catalog? Online ordering? d. Do you offer “Private Line” products? Please describe. e. Submit all information that will ai d the City in evaluating your proposal.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 11 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

3. Services
a. Provide a detailed written response illustrating how the services offered will meet the requirements of this solicitation. Offerors shall provide the proposed services that will meet the Service Requirements of this solicitation. For each proposed category, describe and/or provide details explaining your capabilities. In your response include information such as:

1. Policies and programs detailing your efforts in these areas.

2. Literature explaining your capabilities.

3. Submit all information that will aid the City in evaluating your proposal.

b. Describe how you will roll out your program to City of Tucson staff? Include in your discussion training, education, meetings, information gathering, annual contract awareness event, etc.

c. Describe how you will develop and maintain relationships with key department end users to convert sales to this contract, offer relevant solutions, problem solve, introduce new products or services, etc.

d. Describe your sales and reporting capabilities. What level of detail is available?

4. Ordering and Invoices
a. Describe your ordering capacity (retail locations, telephone, fax, internet, etc.). Provide details of the capabilities of your E Commerce website including ability to display contract pricing, on-line ordering, order tracking, search options, order history, technical assistance, lists, technical data and documentation, identification of alternate green products, etc.

b. Describe your invoicing process. Is electronic invoicing available? Is summary invoicing available? Are there other options on how an agency receives an invoice? Submit sample invoices.
c. Describe how problems – such as a customer ordering a wrong product; a customer receiving a defective or wrong product; etc. – are resolved. d. Describe how your firm measures performance including identification, calculation, tracking and reporting of measurements. What is your stock fill percentage rate, by line item, of the orders filled without backorders?

e. If providing for retail location purchases, describe how agencies choosing to pick up products at a retail location will receive the correct contract pricing.

f. Describe your process for identifying out of stock items and the options available to ordering agencies, such as: request a back ordered item, requesting a substitute item and cancelling the item from the order.

5. Other/Value Add
a. Describe any government rebate or government incentive programs applicable

b. Describe how your firm will meet the mont hly usage reporting criteria. Submit a sample report.

c. Please include any value-added services that have not been listed in the scope of work. Services could include, but not limited to, safety shoe program, additional inventory management, emergency preparedness services, safety glove programs etc.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 12 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

B. Price Proposal

1. Provide a price proposal as requested on the Attachment B – Price Page.

Core Lists
a. Market Basket – Provides for the deepest discounts, as listed on the category discount sheet, on a variety of products to agencies nationwide. Products in this list represent the largest annual spend in terms of dollars and/or highest volume in terms of quantity. Pricing for Market Basket items shall be provided to all Participating Agencies. b. Functional Alternatives – Provide items which can be substitutes for the corresponding items on the Market Basket which might provide better value but meet the same need. Items in the Functional Alternatives section of the price page will be evaluated as value-add items for the National Program. Pricing for Functional Alternatives shall be provided to all participating agencies.
i. Using Attachment B, Price Page, complete the columns specified resulting in the proposed discount and net contract price for items offered nationally. ii. Using Attachment B, Price Page, complete the Category Discount page listing the percentage off discount price for each category provided. iii. How often does the Offeror propose to update this list? Are there certain products that should be updated more frequently than others?

b. Customized Core List by Agency, individual local and state departments, and regional core lists– In addition to the National Core List, Offerors may provide customized core lists to agencies.
i. Describe Offeror’s ability to provide customized core lists to agencies; ii. The number of items Offeror proposes to provide on a customized core list; iii. How often does the Offeror propose to update customized core lists; iv. Describe any agency size or volume limitations.

d. Seasonal or Special Pricing: Describe any pr ograms offered to promote special pricing to Participating Agencies.

2. Describe how services proposed will be priced.

4. Propose a plan to adjust pricing as market conditions change. The plan must be verifiable and auditable. Identify calculation, formula, components, index, etc.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 13 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

6. Provide details of and propose additional discounts for volume orders, special manufacturer’s offers, minimum order quantity, free goods program, total annual spend, etc.

8. Provide your payment terms.

9. As stated in the Instructions to Offerors, 7. Discounts, the price(s) herein can be discounted by _______%, if payment is made within ______ days. These payment terms shall apply to all purchases and to all payment methods.

10. Will payment be accepted via commercial credit card? ______Yes ______No a. If yes, can commercial payment(s) be made online? _____Yes _____No b. Will a third party be processing the commercial credit card payment(s)? ___Yes ____No c. If yes, indicate the flat fee per transaction $___________ (as allowable, per Section 4.9 of the MasterCard Transaction Processing Rules).
d. If “no” to above, will consideration be given to accept the card? ______Yes _______No

11. Does your firm have a City of Tucson Business License? ______Yes ______No If yes, please provide a copy of your City of Tucson Business license.

C. Qualifications and Experience

1. Provide a brief history and description of your company.

2. Provide a statement of your annual sales for the past 3 years.

3. Highlight experience and strong national presence in the MRO industry.

4. Provide the total number and location of sales persons employed by your firm.

5. Number and location of support centers (if applicable).

6. Describe the qualifications of your sales personnel and technicians.

7. Provide a listing of key personnel who may be assigned to the City’s contract. Include their title within your organization and the description of the type of work they may perform. Please identify an executive corporate sponsor who will be responsible for the overall management of the awarded Master Agreement.

9. Please submit any additional information that you feel is applicable to your qualifications and experience.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 14 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

III. GENERAL
A. Shortlist:

The City reserves the right to shortlist the offerors on the stated criteria. However, the City may determine that shortlisting is not necessary.

B. Interviews:

The City reserves the right to conduct interviews with some or all of the offerors at any point during the evaluation process. However, the City may determine that interviews are not necessary. In the event interviews are conduct ed, information provided during the interview process shall be taken into consideration when ev aluating the stated criteria. The City shall not reimburse the offeror for the costs associated with the interview process.

C. Additional Investigations:

The City reserves the right to make such additional investigations as it deems necessary to establish the competence and financial stability of any offeror submitting a proposal.

D. Prior Experience:

Experiences with the City and entities that evaluation committee members represent and that are not specifically mentioned in the solicitation response may be taken into consideration when evaluating offers.

E. Multiple Awards:

To provide adequate contract coverage, at the City’s sole discretion, multiple awards may be made.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 15 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

SPECIAL TERMS AND CONDITIONS

1. COOPERATIVE PURCHASING: Any Contract resulting from this solicitation shall be for the use of the City of Tucson. In addition, public and nonprofit agencies that have registered with OMNIA Partners or entered into a Cooperative Purchasing Agreement with the City of Tucson's Department of Procurement are eligible to participate in any subsequent Contract. See http://www.tucsonprocurement.com/coop_partners.aspx and click on Cooperatives for a list of the public and nonprofit agencies that have currently entered into Cooperative Purchasing Agreements with the City of Tucson. Additionally, this contract is eligible for use by the Strategic Alliance for Volume Expenditures (SAVE) cooperative. See http://www.mesaaz.gov/home/showdocument?id=23638 for a listing of participating agencies. The parties agree that these lists are subject to change.

Any orders placed to, or services required from, the successful Cont ractor(s) will be requested by each participating agency. Payment for purchases made under this agreement will be the sole re sponsibility of each participating agency. The Contractor may negotiate additional expenses incurred as a result of participating agencies’ usage of this contract (i.e., freight charges, travel related expenses, etc.). The City shall not be responsible for any disputes arising out of transactions made by others.

The Contractor(s) will provide an electronic copy of the complete Contract to the City of Tucson Department of Procurement upon receipt of the Notice of Intent to Award. At the City's request, the successful Contractor(s) may also be requested to provide an electronic copy of the complete Contract to a participating agency.

2. FEDERAL, STATE AND LOCAL TA XES, LICENSES AND PERMITS: The Supplier shall comply with all Federal, State, and local licenses and permits required for the operation of the business conducted by the Supplier as applicable to this Contract. The Supplier shall, at no expense to the City, OMNIA Partners, or other Participating Public Agencies, procure and keep in force during the entire period of the Agreement all such permits and licenses.

3. SUBCONTRACTORS: No subcontract shall be made by the contractor with any other party for furnishing any of the services herein contracted for without the advance written approval of the Department of Procurement. All subcontractors shall comply with Federal and State laws and regulations that are applicable to the services covered by the subcontractor and shall include all the terms and conditions set forth herein which shall apply with equal force to the subcontract, as if the subcontractor were the Contractor referred to herein. Contractor is responsible for contract performance whether or not subcontractors are used.

4. FOB DESTINATION FREIGHT PREPAID: Prices shall be FOB Destination Freight Prepaid to the delivery location designated. Contractor shall retain title and control of all goods until they are delivered and the Contract of coverage has been completed. All risk of transportation and all related charges shall be the responsibility of the Contractor. All claims for visible or concealed damage shall be filed by the Contractor.

The City will assist the Contractor in arranging for inspection.

5. PAYMENTS: All payments made by the City of Tucson for goods or services will be made to the vendor named on the Offer and Acceptance form. If you do not wish payment to be made to that address, you must submit an attached sheet indicating the proper mailing address with this bid.

6. RIGHT TO TERMINATE FOR CHANGE IN OW NERSHIP OR MATERIAL RESTRUCTURE OF THE CONTRACTOR: In addition to the Termination of Contract clause in the Standard Terms and Conditions section of this solicitation and resulting contract, the City reserves the right to cancel the whole or part of this contract within 60 days written notice of the completion of any material change of ownership in the Contractor’s company, including its sale, merger, consolidation or dissolution.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 16 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

7. TERM AND RENEWAL: The term of the Contract shall commence upon award and shall remain in effect for a period of three (3) years, unless terminated, canceled or extended as otherwise provided herein. The Contractor agrees that the City of Tucson shall have the right, at its sole option, to renew the Contract for two (2) additional one-year periods or portions thereof. In the event that the City exercises such rights, all terms, conditions and provisions of the original Contract shall remain the same and apply during the renewal period with the possible exception of price and minor scope additions and/or deletions.

8. PRICE ADJUSTMENT: The City will review fully documented requests for price adjustment at the end of the Contract's first year. Subsequent fully documented requests for price adjustment may be made at the end of each Contract year that the Contract is in effect. Price adjustments may be a consideration in the continuance and/or renewal of the contract. The City will determine whether the requested price adjustment or an alternate option, is in the best interest of the City.

9. INSURANCE : The Contractor agrees to:

A. Obtain insurance coverage of the types and amount required in this section and keep such insurance coverage in force throughout the life of this contract. All policies will contain an endorsement providing that written notice be given to the City at least 30 days prior to termination or cancellation in coverage in any policy, and 10 days notice for cancellation due to non-payment in premium.

B. The Commercial General Liability Insurance and Commercial Automobile Liability Insurance policies will include the City as an additional insured with respect to liability arising out of the performance of this contract. Such additional insured shall be covered to the full limits of liability purchased by the Contractor, even if those limits of li ability are in excess of those required by this Contract. The insurance hereunder will be primary and t hat any insurance carried by the City will be excess and not contributing.

C. Provide and maintain minimum insurance limits as applicable:

COVERAGE LIMITS OF LIABILITY
I. Commercial General Liability:

Policy shall include Bodily Injury, Property Damage, Personal Injury and Broad Form Contractual Liability

Each Occurrence $1,000,000
General Aggregate $2,000,000
Products & Completed Operations Aggregate $2,000,000
Personal and Advertising Injury $1,000,000
Blanket Contractual Liability $1,000,000
II. Commercial Automobile Liability
Policy shall include Bodily Injury and Property Damage, for any owned, Hired, and/or Non-owned vehicles used in the operation, installation and maintenance of facilities under this agreement.

Combined Single Limit $1,000,000
III. Workers' Compensation (applicable to the State of Arizona)*1 Per Occurrence Statutory
Employer's Liability $1,000,000
Disease Each Employee $1,000,000
Disease Policy Limit $1,000,000
*1 Sole Proprietor/Independent Contractor designation is given to those who desire to waive their rights for workers’ compensation coverage and benefits as outlined in ARS§ 23‐901 and specifically ARS § 23‐961 (O). If applicable, please request the Sole Proprietor/Independent Contractor form from the Contract Officer listed in the solicitation.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 17 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

D. ADDITIONAL INSURANCE REQUIREMENTS: Policies shall be endorsed to include the following provisions:

1. A waiver of subrogation endorsement in favor of the City of Tucson, for losses arising from work performed by or on behalf of the Contractor (including Worker’s Compensation).

2. The insurance afforded the contractor shall be primary insurance and that any insurance carried by the City of Tucson and its agents, of ficials or employees shall be excess and not contributory.

3. Coverage provided by the Contractor shall not be limited to the liability assumed under the indemnification provisions of this Contract.

E. NOTICE OF COVERAGE MODIFICATIONS: Any changes material to compliance with this contract in the insurance policies above shall require 10 days written notice from the Contractor to the City of Tucson. Such notice shall be sent directly to the Department of Procurement.

F. ACCEPTABILITY OF INSURERS: Contractors insurance shall have an “A.M. Best” rating of not less than A:VII. The City of Tucson in no way warrants that the required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency.

G. VERIFICATION OF COVERAGE: Contractor shall furnish the City of Tucson with certificates of insurance (ACORD form or equivalent approved by the City of Tucson) as required by this Contract.

The certificates for each insurance policy are to be signed by an authorized representative.

All certificates and endorsements are to be received and approved by the City of Tucson before work commences. Each insurance policy required by this Contract must be in effect at or prior to commencement of work and remain in effect for the duration of the contract and two (2) years after completion. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal upon the City’s request, is a material breach of contract.

All certificates required by this Contract shall be sent directly to the Department of Procurement.

The City of Tucson project/contract number and pr oject description shall be noted on the certificate of insurance. The City of Tucson reserves the right to require complete copies of all insurance policies required by this Contract at any time.

H. SUBCONTRACTORS: Contractors’ certificate(s) shall include all subcontractors as insureds under its policies or Contractor shall furnish to the City of Tucson separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to the minimum requirements identified above.

I. EXCEPTIONS: In the event the Contractor or sub-contractor(s) is/are a public entity, then the Insurance Requirements shall not apply. Such public entity shall provide a Certificate of Self- Insurance

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 18 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

STANDARD TERMS AND CONDITIONS

1. ADVERTISING: Contractor shall not advertise or publish informat ion concerning this Contract without prior written consent of the City’s Director of Procurement.

2. AFFIRMATIVE ACTION: Contractor shall abide by the provisions of the Tucson Procurem ent Code Chapter 28, Article XII.

3. AMERICANS WITH DISABILITIES ACT: The Contractor shall comply with all applicable provisions of the Americans with Disabilities Act (Public Law 101-336, 42 U.S.C. 12101, et seq.) and applicable Federal regulations under the Act.

4. APPLICABLE LAW: This Contract shall be governed, and the City and Contractor shall have all remedies afforded to each, by the Tucson Procurement Code and the law of the State of Arizona. Stat e law claims shall be brought only in Pima County Superior Court.

5. ASSIGNMENT-DELEGATION: No right or interest in this Contract s hall be assigned by the Contractor without prior written permission of the City, and no del egation of any duty of the Contractor shall be made without prior written permission of the City's Director of Procurement. The Ci ty shall not unreasonably withhold approval and shall notify the Contractor of the City's position by written notice.

6. CHILD/SWEAT-FREE LABOR POLICY: The Contractor shall comply with a ll applicable provisions of the United States Federal and State Child Labor and Worker's Right laws and agrees if called upon to affirm in writing, that they, and any subcontractor involved in the provision of goods to the City, are in compliance.

7. CLEAN UP: The Contractor shall at all times keep the contract area, including stor age areas used by the Contractor, free from accumulation of waste material or rubbish and, prior to completion of the work, remove any rubbish from the premises and all tools, scaffolding, equipment and materials not property of the City. Upon completion of the repair, the Contractor shall leave the work and premises in clean, neat and workmanlike condition.

8. COMMENCEMENT OF WORK: The Contractor is cautioned not to co mmence any billable work or provide any material or service under this Contract until Contractor rece ives purchase order or is otherwise directed to do so, in writing, by the City.

9. CONFIDENTIALITY OF RECORDS: The Contractor shall establish and maintain procedures and controls that are acceptable to the City for the purpose of assuring that no information contained in its records or obtained from the City or from others in carrying out its functions under the Contract shall be used by or disclosed by it, its agents, officers, or employees, except as required to efficiently perform dutie s under the Contract. Persons requesting such information should be referred to the City. Information pertaining to individual persons shall not be divulged other than to employees or officers of Contractor as needed for the performance of dutie s under the Contract, unless otherwise agreed to in writing by the City.

10. CONTRACT AMENDMENTS: The Procurement Department has the sole authority to:

A. Amend the contract or enter into suppl emental verbal or written agreements; B. Grant time extensions or contract renewals;
C. Otherwise modify the scope or term s and provisions of the contract.

This Contract shall only be modified with the approval of the Department of Procurement. Except in the case of a documented emergency, approval mu st be granted prior to performance. An y contract modification not explicitly approved by the Procurement Department through a written c ontract amendment or change order is performed at the sole risk of the Contractor and may not be eligible for payment by the City.

11. CONTRACT: The Contract shall be based upon the Request for Proposal issued by the City and the Offer submitted by the Contractor in response to the Request for Proposal. The offer shall substantially conform to the terms, conditions, specifications and other requirements set forth within the text of the Request for Proposal. The City reserves the right to clarify any contractual terms with the concurrence of the Contra ctor; however, any substantial non-conformity in the offer, as determined by the City's Director of Procurement, shall be deemed non-responsive and the offer rejected. The Contract shall contain the entire agreement between the City of Tucson and the Contractor relating to this requirement and shall prevail over any and all previous agreements, contracts, proposals, negotiations, purchase orders, or master agreements in any form.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 19 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

12. DEFAULT IN ONE INSTALLMENT TO CONSTITUTE TOTAL BREACH: Contractor shall deliver conforming materials in each installment or lot of this Contract and may not substitute nonconforming materials. Delivery of nonconforming materials, or default of any nature, may constitute breach of the Contract. Noncompliance may be deemed a cause for possible Contract termination.

13. DUPLEXED/RECYCLED PAPER: In accordance with efficient resource procurement and utilization policies adopted by the City of Tucson, the Contractor shall ensure that, whenever practicable, all printed materials produced by the Contractor in the performance of this Contract are duplexed (two-sided copies), printed on recycled paper and labeled as such.

14. EQUAL PAY: The Contractor shall comply with the applicable provisions of the Equal Pay Act of 1963 (Pub.L. 88-38, 29 U.S.C. section 206(d)); Title VII of the Civil Rights Act of 19 64 (Pub.L. 88-352, 42 U.S.C. 2000e et.seq.; and, the Lily Ledbetter Fair Pay Act of 2009 (Pub.L. 111-2).

15. EXCLUSIVE POSSESSION: All services, information, computer progra m elements, reports and other deliverables created under this Contract are the sole property of t he City of Tucson and shall not be used or released by the Contractor or any other person except with prior written permission by the City.

16. FEDERAL IMMIGRATION LAWS AND REGULATIONS: Contractor warrants that it complies with all Federal Immigration laws and regulations that relate to its em ployees and complies with A.R. S. § 23-214(A) and that it requires the same compliance of all s ubcontractors under this Contract. Contra ctor acknowledges that pursuant to A.R.S. § 41-4401 and effective September 30, 2008, a breach of this warranty is a material breach of this Contract subject to penalties up to and including termination of this Contract. The City retains the legal right to audit the records of the Contractor and inspect the papers of any employee who works for the Contractor to ensure compliance with this warranty and the Contractor shall assist in any such audi t. The Contractor shall include the requirements of this paragraph in each contract with subcontractors under this Contract.

If the Contractor or subcontractor warrants that it has complied with the employment verification provisions prescribed by sections 274(a) and 274(b) of the Federal Immigration and Nationality Act and the E-verify requirements prescribed by A.R.S. § 23-214(A), the Contractor or subcontractor shall be deemed to be in compliance with this provision. The City may request proof of such compliance at any time duri ng the term of this Contract by the Contractor and any subcontractor.

17. FORCE MAJEURE: Except for payment of sums due, neither party shall be liable to the other nor deemed in default under this Contract if and to the extent that such party's performance of this Contract is prevented by reason of Force Majeure. The term "Force Majeure" means an occurrence that is beyond the control of the party affected and occurs without its fault or negligence. Force Majeure shall not in clude late performance by a subcontractor unless the delay arises out of a Force Majeure occurrence in accordance with this Force Majeure term and condition.

If either party is delayed at any time in the progress of the work by Force Majeure, the delayed party shall notify the other party in writing of such delay, as soon as is practical, of the commencement thereof and shall specify the causes of such delay in such notice. Such notice shall be hand-de livered or mailed certified-return receipt and shall make a specific reference to this article, thereby invoking its provisions. The delayed party shall cause such delay to cease as soon as practicable and shall notify the other party in writing when it has done so. The time of completion shall be extended by contract modification for a period of time equal to the time that results or effects of such delay prevent the delayed party from performing in accordance with this Contract.

18. GRATUITIES: The City may, by written notice to the Contractor, termi nate this Contract if it is found that gratuities, in the form of entertainment, gifts, meals or otherwise, were offered or given by the Contractor or any agent or representative of the Contractor, to any officer or employee of the City amending, or the making of any determinations with respect to the performing of such C ontract. In the event this Contract is te rminated by the City pursuant to this provision, the City shall be entitled, in addition to any ot her rights and remedies, to recover or withhold from the Contractor the amount of the gratuity.

19. HUMAN RELATIONS: Contractor shall abide by the provisions of the Tucson City Code Chapter 28, Article XII.

20. INDEMNIFICATION: To the fullest extent permitted by law, Contract or, its successors, assigns and guarantors, shall pay, defend, indemnify and hold harmless Ci ty of Tucson, its agents, representati ves, officers, directors, officials and employees from and against all allegations, demands, proceeding s, suits, actions, claims, including claims of patent CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 20 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

or copyright infringement, damages, losses, expenses, includ ing but not limited to, attorney fees, court costs, and the cost of appellate proceedings, and all claim adjusting and han dling expense, related to, arising from or out of or resulting from any actions, acts, errors, mistakes or omissions caused in whole or part by Contractor relating to work, services and/or products provided in the performance of this Contract, including but not limited to, any Subcontractor or anyone directly or indirectly employed by any of them or anyone for whos e acts any of them may be liable and any injury or damages claimed by any of Contractor’s and Subcontractor’s employees. It is agreed that Contractor will be responsible for primary loss investigation, defense and judgm ent costs where this indemnification is applicable. The Contractors agrees to waive all rights of subrogation against t he City of Tucson, it's agents, representatives, officers, directors, officials, employees and volunteers for losses arising from the work performed by the Contractor for the City of Tucson.

Contractor is responsible for compliance with the Patient Pr otection and Affordable Care Act (ACA), for its employees in accordance with 26 CFR §54. 4980H. Additionally, C ontractor is responsible for all applicable IRS reporting requirements related to ACA. If Contractor or any of Contract or’s employees is certified to the City as having received a premium tax credit or cost sharing reduction which contributes to or triggers an assessed penalty against the City, or Contractor fails to meet reporting requirements pursuant to section 6056 resulting in a penalty to City, Contractor indemnifies City from and shall pay any assessed tax penalty.

21. INDEPENDENT CONTRACTOR: It is understood that each party shall act in its individual capacity and not as an agent, employee, partner, joint venture, or associate of t he other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other party for any purpose.

The Contractor shall not be entitled to compensation in t he form of salaries, holidays, paid vacation, sick days, or pension contributions by the City. The Ci ty of Tucson will not provide any in surance coverage to the Contractor, including Worker's Compensation coverage. The Contractor is advised that taxes, social security payments, and other withholdings shall not be withheld from a City payment issued under this Cont ract and that Contractor should make arrangements to directly pay such expe nses. Contractor is responsible for compliance with the Affordable Care Act for Contractor and any of Contractor’s employees.

22. INSPECTION AND ACCEPTANCE: All material or service is subject to final inspection and acceptance by the City.

Material or service failing to conform to the specifications of this Contract shal l be held at the Contractor's risk and may be returned to the Contractor. If returned, all costs ar e the responsibility of the Contractor. Noncompliance may be deemed a cause for possible Contract termination.

23. INTERPRETATION-PAROL EVIDENCE: This Contract is intended by the parties to be a final expression of their agreement and is intended also as a complete and exclusive statement of the terms of this agreement. No course of prior dealings between the parties and no usage of the trade shall be relevant to supplement or explain any term used in the Contract. Acceptance or consent in the course of performance under this Contract shall not be relevant to determine the meaning of this Contract even though the accepting or consenting party has knowledge of the nature of the performance and the opportunity to object.

24. ISRAEL BOYCOTT DIVESTMENTS: Acceptance of the contra ct warrants that the vendor is in compliance with A.R.S. § 35-393 and does not participate in a boycott of Israel as that term is defined within A.R.S. § 35-393.

25. LICENSES: Contractor shall maintain in current status all Fe deral, State, and local licens es and permits required for the operation of the business conducted by the Contractor as applicable to this Contract.

26. LIENS: All materials, services, and other deliverables supplied to the City under this Contract shall be free of all liens other than the security interest. Security interest shall extinguish upon full payment made by the City. Upon the City’s request, the Contractor shall provide a formal release of all liens.

27. NO REPLACEMENT OF DEFECTIVE TENDER: Every tender of materials must fully comply with all provisions of this Contract. If a tender is made which does not fully comply, this shall conform to the termination clause set forth within this document.

28. NON-EXCLUSIVE CONTRACT: Any contract resulting from this solici tation shall be awarded with the understanding and agreement that it is for the sole convenience of the City of Tucson. The City reserves the right to obtain like goods or services from another source when necessary.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 21 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

29. OVERCHARGES BY ANTITRUST VIOLATIONS: The City maintains that, in actual practice, overcharges resulting from antitrust violations are borne by th e purchaser. Therefore, to the extent permitted by la w, the Contractor hereby assigns to the City any and all claims for such overcharges as to the materials or services used to fulfill the Contract.

30. PAYMENT: The City’s preferred method of payment is via credit card. The City will issue a Purcha se Order and, in some cases, either provide a credit card for payment at the time of ordering or pay subsequent invoices by credit card upon receipt of goods or services in good order. However, not all City employees will possess a credit card and, therefore, the City reserves the right to make payment by check as it deems necessary.

Unless payment is made by credit card at time of order or point of sale, a separate invoice shall be issued for each shipment of material or service performed, and no payment shall be issued prior to receipt of material or service and correct invoice. The invoice shall not be dated prior to the receipt of goods or completion of services.

The City shall make every effort to process payment for t he purchase of materials or services within twenty-one (21) calendar days after receipt of materials or services and a correct invoice.

The Contractor's payment terms shall apply to all purchases and to all payment methods.

31. PROTECTION OF GOVERNMENT PROPERTY: The Contractor shall use reasonable care to avoid damaging existing buildings, equipment, and vegetation (such as trees, shrubs, and grass) on City property. If the Contractor fails to do so and damages such property, the Contractor shall replace or repair the damage at no expense to the City, as determined and approved by the City’s Director of Procurement. If the Contractor fails or refuses to make such repair or replacement, the City will determine a cost and the Contractor shall be liable for the cost thereof, which may be deducted from the Contract price.

32. PROVISIONS REQUIRED BY LAW: Each and every provision of law and any clause required by law to be in the Contract shall be read and enforced as though it were incl uded herein, and if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, t hen upon the application of either party the Contract shall be amended to make such insertion or correction.

33. RECORDS: Internal control over all financial transactions relate d to this Contract shall be in accordance with sound fiscal policies. The City may, at reasonable times and pl aces, audit the books and records of the Contractor and/or any subcontractors. Said audit shall be limited to this Contract.

34. RIGHT TO ASSURANCE: Whenever one party to this Contract has reason to question, in good faith, the other party's intent to perform, the former party may demand that the other party give a written assurance of this intent to perform.

In the event that a demand is made and no written assurance is given within five (5) days, the demanding party may treat this failure as the other party’s intent not to perform and as a cause for possible Contract termination.

35. RIGHT TO INSPECT: The City may, at reasonable times, and at the Ci ty's expense, inspect the place of business of a Contractor or subcontractor which is related to the performance of any Contract as awarded or to be awarded.

36. RIGHTS AND REMEDIES: No provision in this document or in t he Contractor's proposal shall be construed, expressly or by implication, as a waiver by either party of any existing or future right and/or remedy available by law in the event of any claim, default or breach of contract. The failure of either party to insist upon the strict performance of any term or condition of the Contract, to exercise or delay the exercise of any right or remedy provided in the Contract or by law, or to accept materials or services required by this Contract or by law shall not be deemed a waiver of any right of either party to insist upon the strict performance of the Contract.

37. SEVERABILITY: The provisions of this Contract are severable to t he extent that any provisio n or application held to be invalid shall not affect any other provision or applicati on of the Contract which may remain in effect without the valid provision or application.

38. SHIPMENT UNDER RESERVATION PROHIBITED: No tender of a bill of lading shall operate as a tender of the materials. Non-compliance shall conform to the termination clause set forth within this document.

39. SUBCONTRACTS: No subcontract shall be entered into by the Contract or with any other party to furnish any of the material/service specified herein without the advance writt en approval of the City's Director of Procurement. All subcontracts shall comply with Federal and State laws and regulations which are applicable to the services covered CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 22 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

by the subcontract and shall include all the terms and condition s set forth herein which shall apply with equal force to the subcontract, as if the subcontractor were the Contract or referred to herein. The Contractor is responsible for contract performance whether or not subcontractors are used.

40. SUBSEQUENT EMPLOYMENT: The City may terminate this Contract wi thout penalty or further obligation pursuant to A.R.S. Section 38-511 if any person significantly involved in initiating, negotiating, securing, drafting, or creating the Contract, on behalf of the City, is or becomes, at any time wh ile the Contract or any extens ion of the Contract is in effect, an employee of, or a contractor to , any other party to this Contract with respect to the subject matter of the Contract. Termination shall be effective when written notice fr om the City's Director of Procurement is received by the parties to this Contract, unless the notice specifies a later time.

41. TERMINATION OF CONTRACT: This Contract may be terminated at any time by mutual written consent, or by the City, with or without cause, upon giving thirty (30) days written notice. The City , at its convenience, by written notice, may terminate this Contract, in whole or in part. If this Contract is terminated, the City shall be liable only for payment under the payment provisions of this Contract for services rendered and accepted material received by the City before the effective date of termination.

The City reserves the right to terminate the whole or any par t of this Contract due to the failure of the Contractor to carry out any term or condition of the Contract. The City will issue a written ten (10) day notice of default to the Contractor for acting or failing to act as specified in any of the following:

In the opinion of the City, the Contra ctor provides personnel that do not meet the requirements of the Contract;

In the opinion of the City, the Contractor fails to perform adequately the stipulations, conditions or services/specifications required in this Contract;

In the opinion of the City, the Contractor attempts to impose personnel, materials, products or workmanship of an unacceptable quality;

The Contractor fails to furnish the required service and/o r product within the time stipulated in the Contract;

In the opinion of the City, the Contractor fails to ma ke progress in the performanc e of the requirements of the Contract;

The Contractor gives the City a positive indication that the Contractor will not or cannot perform to the requirements of the Contract.

Each payment obligation of the City cr eated by this Contract is conditioned upon the availability of City, State and Federal funds that are appropriated or allocated for the paym ent of such an obligation. If funds are not allocated by the City and available for the continued purchase of the services and/or material s provided under this Contract, this Contract may be terminated by the City at the end of the period for which fund s are available. The City will endeavor to notify the Contractor in the event that continued service will or may be a ffected by non-appropriation. No penalty shall accrue to the City in the event th is provision is exercised, and the City shall not be obligated or liable for any future payments due or for any damages as a result of termination under this paragraph.

42. TITLE AND RISK OF LOSS: The title and risk of loss of material or serv ice shall not pass to the City until the City actually receives the material or service at the point of delivery, unless otherwise provided within this Contract.

43. WARRANTIES: Contractor warrants that all materi al or service delivered under this Contract shall conform to the specifications of this Contract. Mere receipt of shipment of the material or service specified and any inspection incidental thereto by the City shall not alter or affect the obligations of the Contractor or the rights of the City under the foregoing warranties. Additional warranty requirements may be set forth in this document.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 23 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

PRICE PAGE

Fee must be inclusive of all costs, including but not limited to, direct and indirect costs for labor, overhead, materials, printing, travel and mileage, postage, etc.

Please refer to Attachment B

Please complete Attachment B in its entirety. The first sheet has an area that has been added for functional alternatives that can be offered in addition. These will also be reviewed and evaluated. The second sheet has a list of categories. Please list the discount off price for each category. Please submit a copy of the excel document/price page on your electronic copy. DO NOT lock or password protect the electronic copy of your price page.

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 24 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

OFFER AND ACCEPTANCE

OFFER

TO THE CITY OF TUCSON:

The Undersigned hereby offers and shall furnish the material or se rvice in compliance with all te rms, scope of work, conditions , specifications, and amendments in the Request for Proposal which is incorporated by reference as if fully set forth herein.

For clarification of this offer, contact:

N a m e :

Company Name

T i t l e :

Address

P h o n e :

City State Zip

F a x :

Signature of Person Authorized to Sign

E-mail: _________________________________
Printed Name

Title

ACCEPTANCE OF OFFER

The Offer is hereby accepted. The Contractor is now bound to sell the materials or services specified in the Contract. This Contract shall be referred to as Contract No. .

CITY OF TUCSON, a municipal corporation

Approved as to form: Awarded:

This day of 2019 This day of 2019

______________________________________ _________________________________________ As Tucson City Attorney and not personally As Director of Business Services and not personally

CITY OF TUCSON DEPARTMENT OF PROCUREMENT REQUEST FOR PROPOSAL NO. 192163 255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701 PAGE 25 OF 25 PRINCIPAL CONTRACT OFFICER:JENN MYERS, CPPB
PH: (520) 837-4137 / FAX: (520) 791-4735

ATTACHMENTS

Attachment A – OMNIA Partners – Requirements for National Cooperative Contract

Attachment B – Price Page

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
140 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

Appendix

CITY OF TUCSON DEPARTMENT OF PROCUREMENT
255 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 85701
REQUEST FOR PROPOSAL NO. 192163

PRINCIPAL
CONTRACT OFFICER:JENN MYERS, CPPB PH: (520)
837-4137 / FAX: (520) 791-4735

RFP NO. 192163 The City of Tucson & OMNIA
141 April 11, 2019 Maintenance, Repair And Operations (MRO) Supplies, Parts, Equipment, Materials & Related Services

3. Services - Literature

Please see the following attachments in this section:

1. Grainger Sourcing Capabilities

2. Grainger.com Overview – Get More Done

3. Grainger.com – Order Management Solution

4. Grainger eProcurement Offerings

5. Grainger’s Energy, Facili ty and Safety Services

6. Grainger Safety Services and Assessments

7. Grainger KeepStock Inventory Management Solutions

8. Grainger Managed MRO

9. KeepStock Vending Overview

10. Grainger Customer Managed Inventory Overview

11. Case Study: University KeepStock Onsite Saves $355,000 Annually

12. Grainger Supplier Diversity

13. Grainer 2018 Corporate Responsibility Report

14. Energy Efficient Lighting Solutions

15. University Case Study: HVAC Energy Savings $1.8M Annually

16. Grainger Energy Services

17. Grainger Technical Skill Training

18. Safety Services Network Training

19. Grainger Safety Training and Services

Here is how it works:

Just call 1-800-CALL-WWG, your local branch, your Account Manager or go to grainger.com/beyondcatalog
for more information!
can’t find what you are
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a
sk
us
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• Save time and money by consolidating your unplanned
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and inquiries within 24 hours.
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Save on process costs. Supplier consolidation means
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and less suppliers to manage.
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Eliminate service gaps with our ability to source
and ship directly from our supplier to your facility.

S ERVICE SOLUTION S
Cleaning
Benjamin Moore
Bobrick Washroom Equipment
Diversified Brands
G
eorgia Pacific
GOJO Industries
Lagasse Brothers
MI-T-M
New Pig
Pitt Plastics
Rubbermaid Commercial Prod.

Rust-Oleum
Sherwin Williams
Superior/Notrax
Tennant
Weiler Brush
World Dryer
United Receptacle
Electrical
Advance Electric
APC
Appleton
AWP (American Wire Products)
Eaton
General Cable
Hubbell Wiring Devices
Leviton
Omron Industria l Automation
Schneider Electr ic (Square D)
Thomas & Betts
3M
Tripp Lite
Wellmade Products
Woodhead
Fasteners
ABC Spax
Accurate Mfd. Prod ucts Group
APM Hexseal
Celus Fasteners Mf g., Inc.

Danaher Tool Gr oup
Earnest Machine Products Co.

Hexagon Enterprises, Inc .

Industrial Screw & Supply
Lindstrom Metric, Inc.

Mechanical Plastics Co rp .

Mi dwest Acorn Nut Compan y
Porteous Fastener Compa ny
Precision Brand Products
Prospect Fasteners
Southern Fasteners and Supply
Tamper Pruf Screws, Inc.

V
ulcan Threaded Produc ts, Inc.

Ziegler Bolt & Parts
Fleet Vehicle Maintenance
Baldwin
Exxon Mobil
Lincoln Industrial
MacNeil
Plews

SPX OTC
Valvoline
Fluid Powe r
Campbell Hausfeld
Champion Pneumatic
Chicago Pneumatic
Dynaquip Controls
Enerpac
Gardner Denver Thomas
Hankison Division/Hansen
Ingersoll Rand
Pneumati cs
Enerpac
Florida Pneumatic
Gast Mfg.

Geib Industries
Norgren Actuator/Cylinder
Reelcraft
HVAC
Air Handler
Belimo
Broan-Nutone
Fostoria
GE Appliances
Heatcraft Refrig. Products
Honeywell
Johnson Controls
Madison Mfg.

Marley Engineered Products
Port-A-Cool
Sterling
White Rodgers
York Unitary Product
Lighting
Cooper Lighting
Cree
Fostoria Industries
GE Lighting
Hubbell Lighting
Lithonia — Acuity
Lutron Electronics
Pelican Products
Spectrum Brands
Material Handling
AKRO Mils
Albion
Ashland Conveyor Products
Best
Conveyors LLC
CM Hoist
Cotterman
Durham Mfg.

Edsal Mfg.

Folding Guard
Genie
Hallowell
Hamilton Caster
Harrington Hoists
Interlake Mecalux, Inc.

Intermetro Industries
Intertape Polymer
Jarke
KI
Liftall
Lift Rite
Lista
Louisville Ladder
Lyon LLC
Magline
Metzgar Conveyer Portafab
Pro-Line
SAFCO Products
Signode
Southworth Products
Stanley Vidmar
Steel King
Strong Hold Products
Tennsco
Meta lworking
Alemite
Arc Abrasives
Carrlane
CRC Industries
De-Sta-Co
Greenfield
Henkel
ITW Brands
LA-CO Industries
Lincoln Electric
Loctite
L.S. Starrett
Miller Electric
M.K. Morse
Norton/Saint-Gobain Abrasives
Precision Brand Products
Sabic
Sandvik
3M
Thermadyne Industries
Motors
ACME-Miami
A.O. Smith Electrical
Bison Gear & Engineering
Boston Gear
Century Electric Motor
Fasco Industries
GE Commercial Motors
Leeson Electric
Merkle-Korff
Nord Gear
WEG
Pumps & Plumbing
Acorn Engineering
Amtrol
Armstrong Ceiling Tiles
Asco Valve
Chicago Faucet
Cuno
Delta
Elkay
FE Myers
Flint & Walling
Goulds Pumps
Halsey Taylor
In Sink Erator
Just Mfg.

Little Giant Pump
Moen
Parker
Rheem Manufacturing
Sloan Valve
Speakman
Sta-rite
Material Handling
Cont.

Terex
Tri-Arc
Vestil
Werner
WESCO
Safety

5.11 Accuform
Air Systems International
Aearo - A 3M Company
Ansell-Edmont
Bradley
Brady
Bullard
Bulwark
BW Technologies
Carhartt
Cellucap
Cortina
DBI / Capital Safety
DuPont Personal Protection
Eagle Mfg.

Ergodyne
Federal Signal
First Aid
HexA rmor
Honeywell Safety

Horace Small
Industrial Scientific
John Tillman
Justrite
Majestic Glove
Miller

Mine Safety
Appliances / MSA
Mintie Technologies
Moldex
North by Honeywell Sellstrom
NSA (National Safety Apparel)
P.I.P
Propper
RedKap
Salisbury
Showa Best Manufacturing

SPC (Sorbent Products Corp.)
Sperian
SteelGrip
Survivair
The C.H. Hanson Company
Tiscor
TSA (Transportation Safety
Apparel)
Uvex by Honeywell
VF Imagewear
Walter
Kidde
Wells Lamont
W.H. Salisbury
Securit y
Abus
Alarm Lock
Ceco Door
DFW Communications
Federal Signal
Ingersoll Rand Security
Kaba Ilco
Locknetics
Master Lock
Motorola
Panasonic Security & Digital
Safety Technologies International
Security Lock

SpecoTechnologies
Tensator
Test Instruments &
Precisio n Measuring
Advance Test/SPX Services
AEMC Instruments
Ashcroft
Bacharach
Dresser
Dwyer
Extech
Fluke Electronics
Megger
Simpson Electric
Tools
Apex Tool
Black & Decker
Greenlee Textron
Hilti
Klein Tools
Lenox
Makita
Milwaukee Electric
Tool
Mitutoyo
RidgeTool
Robert Bosch
Snap-On
Stanley Proto
Walter Meier
M-R602_2 8SP2823
©2014 W.W. Grainger, Inc.

Full line suppliers in a wide variety of product categories.

Outd oor Equipment
Ames True Temper
CP Industries
FIMCO
Generac
Mi-T-M Corporation
The Coleman Company
Russo Power Equipment
Weingartz
Fluid Power Cont.

Rietschle
Thomas Stanley-Bostitch
Pumps & Plumbing
The Berns Corp.

Watts Regulator
Zoeller
©2016 W.W. Grainger, Inc. 16-ECOMMA-430

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ECOM – OMS OPTIMIZE WORKFLOW – A
SEPT 2018
MY ACCOUNT > ACCOUNT ADMINISTRATION
Enable Order Management with Express Setup or access your existing Order Management Dashboard to customize and
manage existing users.

Define Spend Limits & Approval Limits
Click Limits to define Spend Limits and Approval Limits.

User spend limits may be set per order, month, quarter or year.

These defined user limitations will be available in Step 3 to assign to specific users or by user-role. Standard Users have limited functionality rights. Admin Users have full functionality rights with access to the Account Administration.

Assign Limits
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The Grainger.com Order Management System (OMS) allows you to optimize your workflow for a multi-user environment requiring approval processes.  Control spend by user
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
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NEW Budget Spend
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NEW Budget Spend
Limit Restriction
 KeepStock orders are not affected by OMS Order Spend Limits.  KeepStock Approvers may be assigned Approval Limits by order, not by budget.

Add Spend Limits
Spend Limit Spending Period
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this amount will require
approval.

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Order
Month
Quarter
Year
Please Select ∨
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Approval Limit
5000.00
Orders for more than this amount will require additional approval.

ECOM – OMS OPTIMIZE WORKFLOW – B
SEPT 2018
Orders submitted via Grainger.com or the Grainger Mobile App that exceed spend limits will be routed for approval prior to processing. The Approver will receive an email notification and/or mobile notification that an order requires approval. The order submitter will receive an email confirmation once the order is approved for processing.

Download the Grainger Mobile App to supplement
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Approvers may access Orders Pending Approval from the Grainger.com menu bar, the My Account menu, or the Account Dashboard. Approvers may also access the Grainger Mobile App > Account > Pending Orders.

McTool, Mike Jones, Jeff
Click VIEW to view the order header and detail information, the reason for the pending order, as well as an action summary on the order management workflow.

Jones, Jeff

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• Robust search engine
• Real-time Pricing and Availability
• Shared Lists
• eQuotes
• Integrated KeepStock
Required Information
• OCI v2.0 or cXML
• DUNS number
• Corporate Phone Number
• Single account or multiple account
• Punch-out location codes for
multi-account
Hosted Files
Data is deployed within the
customers procurement system
ERP / Direct Connect Supply-Chain/Procurement Networks
Save time with real-time
pricing, availability, and
enhanced content
Punch-Out Catalog
Automating procurement
through integrated
solutions
Connections
Streamline billing and
reconciliation with
electronic invoices
Invoice
Getting Started is easy! Simply contact your Grainger Sales Representative.

These are some of Grainger’s supported ERP & Supply-Chain/Procurement Networks (complete list available upon request) Standard Offerings
eProcurement
Manage Shop
Order
Manage Shop
Order
Cost Allocation
Internal Product
Distribution
Pricing
Finding Products
Select
Supplier
Paying
Made Easy
Receiving
Your Order
Fast & Easy
Ordering
Cost Allocation
Internal Product
Distribution
Receiving
Your Order
Fast & Easy
Ordering
Pricing
Finding Products
Select
Supplier
Paying
Made Easy
eProcurement Implementation Process Flow
Discover
Requirements
Validation - Initial
Testing/Connectivity
Implementation -
Production
Mapping/Testing
Adoption -
Post Go-Live
Support
To learn more about Grainger’s eProcurement Solutions please contact your Grainger representative today.

Driving Efficiency in Procure-to-Pay (P2P) with
eProcurement Technology
You’ve made the decision to integrate your MRO spend with Grainger’s eProcurement Solution – Now what’s next?
Shopping:
• Punchout Catalogs
• Hosted Catalogs
Ordering:
• Purchase Order Integration
• Integrated KeepStock
• Integrated Sourcing Quotes
Invoicing:
• Electronic Invoice
• Electronic Payment – EFT/ACHv
Here is a list of the standard project types we currently support:

Solution Required Task
Punchout Catalog
Purchase Order Integration
Electronic Invoice
Integrated KeepStock
Hosted Catalog
Grainger Provides Punchout URL & Credentials
Customer Submits Test Orders to Grainger
Customer Submits Location List
Customer Completes Invoice Questionnaire
Customer Completes Test Scans
Grainger Seller Submits Content Requests
A Grainger Sales Representative will
gather initial information including both
business and technical contacts along with
the type of platform you are looking
to integrate.

This information will then be entered
into the Grainger ePro Request system
and within 2-3 business days an
eCommerce Solutions Manager (ESM)
will be assigned to your project.

The ESM will then work with you to
understand your eProcurement goals and
objectives, and gather additional technical
information.
1 2 3
In order to keep things moving and on
track, it’s important that all tasks be
completed in a timely manner. Once these
tasks are completed, your project can be
assigned to a Grainger Programmer and
we will begin building your integrated
solution. This will occur after all required
tasks and preliminary testing is completed.

Once all programming is complete,
Grainger may require additional testing
prior to moving your project to
production. In order to ensure your
project is completed on schedule it is
necessary that all requests for testing
be completed as soon as possible.

Any delays in fully testing your
integration may delay the anticipated
go-live.

After all testing is complete your project
will move to production. Once this occurs,
the Grainger eCommerce Solution Manger
will work with you to develop a strategy to
ensure you are achieving your procure-
ment goals and objectives.
4 5 6
Your specific project may include one or more
of the above project types and this will help
determine the amount of time and resources
required to complete the project.

Depending on the type of project requested,
Grainger will either provide or request one or
more of the following.:

Glossary of Terms:

AS2 - A secure method for transferring electronic documents over the internet XML - Generically, this refers to any document that utilizes a compliant, nested, tag-based structure that makes it both human and machine readable cXML - The most widely-used, XML-based business document standard in the US
xCBL - An XML-based business document standard commonly used in Europe Open Catalog Interface (OCI) - Standard format used in some systems, most notably SAP , for punch-out shopping.

EDI 810 - EDI format for an Invoice
EDI 850 - EDI format for a Purchase Order
EDI 855 - EDI format for a Purchase Order Acknowledgement DUNS Number - A nine-digit number used to uniquely identify businesses.

Commonly used to identify entities in EDI, cXML, and other electronic business document formats.

Punch-Out Catalog - Provides access to web-based catalogs via a link within ERP and eProcurement Systems

SAFETY ENERGY
Through our network of qualified, insured and licensed service providers, we can provide your business with comprehensive solutions that help you:
>
Maintain Safety & Building Compliance
>
Increase Worker Productivity
>
Drive Energy & Facility Efficiency
>
Reduce & Conserve Operating Costs
©2018 W.W. Grainger, Inc. W-AOBT105

GRAINGER SERVICES

FACILITY
LEARN MORE AT GRAINGER.COM/GRAINGERSERVICES

SAFETY SERVICES

ASSESSMENTS
Specific areas are assessed across the worksite in order to identify potential hazards or high-risk areas that may require further actions be taken to remedy.

TRAINING
We offer a wide range of EHS training courses your
employees need to help them effectively perform their jobs safely. Training offerings are available through an online experience or through an on-site instructor.

PROGRAM & PROCEDURE DEVELOPMENT
Effective programs and procedures help ensure compliance and create a safe workplace for your employees.

These programs are developed so that your business
operations can be conducted safely, and are provided
through online templates or custom on-site development.

COMPLIANCE & TESTING
Audits or tests are conducted for identification and/or to monitor hazardous work areas so that controls and safe
work practices can be implemented.

CONSULTING & TURNKEY SOLUTIONS
We offer solutions for unique projects in EHS areas that require design and engineered solutions, installation, or may require additional areas of expertise.
n AED Inspection
n
Arc Flash/Electrical Safety
n
Confined Space
n
Emergency Eye Wash
n
Fire Extinguisher

n Firestop: Barrier, Damper
& Door
n
Footwear
n
Lockout/Tagout
n
Machine Guarding
n
Noise Survey
n
Aerial Lift
n
Confined Space
n
Fire Extinguisher
n
First Aid/CPR/AED
n Forklift
n
Lockout/Tagout
n
Machine Guarding
n
NFPA 70E
n
Respirator
n
Arc Flash/Electrical Safety
n
Confined Space
n

Environmental Safety Hazards
n
Footwear/Benefit Management
n
Lockout/Tagout
n
Machine Guarding
n
Medical First Aid
n
Arc Flash/Electrical Safety
n
Footwear/Benefit Management
n
Lockout/Tagout
n
Machine Guarding
n
Prescription Eyewear
n
Indoor Air Quality
n
Noise Surveys
n
Pulmonary Function Testing
n
Sampling
Contact your Grainger Rep for details, availability and eligibility of these and other services. Services provided by a third-party provider may be subject to a fee agreement between Grainger and the provider. > Grainger has more safety services available to
help solve your needs. Please contact your
Grainger Rep for more information.

ENERGY SERVICES
LEARN MORE AT GRAINGER.COM/GRAINGERSERVICES

RETROFITS & UPGRADES
Working closely with you, our service providers can
identify and facilitate the installation of energy- and water-saving measures to help benefit your bottom line
with minimal disruption to your business.
n Lighting Retrofits/Upgrades
n

HVAC Maintenance/
Upgrades
n Motor & Drive Upgrades
n

Water Conservation
Upgrades

ASSESSMENTS
Any issue within a system can reduce its efficiency,
wasting steam and electricity. Services to address these issues include steam leak identification and mitigation, defective steam trap replacement and upgrades, infrared studies and insulation upgrades. Adjustments will be
made to your steam system to help immediately reduce
operational costs.
n Steam System/Trap Assessments/Upgrades

MIDSTREAM UTILITY REBATE INCENTIVES
Grainger can help you meet your energy reduction goals
by offering discounted energy-efficient products through Midstream Utility Incentive Programs in various areas
across the U.S.

SYSTEM STUDIES
Any issue within a system can reduce its efficiency,
wasting energy. Adjustments will be made to your air
supply and dust collection systems to help immediately
reduce operational costs. An air or dust system audit
may be required, especially if they have not been
examined recently.

INSTALLATION
Electric vehicle charging stations at your facility can help advance your sustainability goals while improving
your corporate image. It can also help save your
customers, employees and business partners thousands
of dollars. We can offer site evaluation, product
recommendations and installation.
n If eligible, Grainger delivers rebates on approved energy- efficient products
n

Once enrolled, the process is automatic with the purchase of eligible energy-efficient products
n

Rebate is credited to your Grainger account
n
Electric Vehicle Charging Station Installation
n

Compressed Air System
Studies/Upgrades
n

Dust Collection System
Studies/Upgrades
Contact your Grainger Rep for details, availability and eligibility of these and other services. Services provided by a third-party provider may be subject to a fee agreement between Grainger and the provider.

FACILITY SERVICES
LEARN MORE AT GRAINGER.COM/GRAINGERSERVICES

ROOFING SERVICES
Roofing and building maintenance solutions designed to
help prolong structural life, easily track and manage roof assets, save energy and improve safety.

ELECTRICAL SERVICES
Electrical system study is offered to determine the pres- ent degree of arc flash hazards and apply associated
equipment labeling. Includes maintenance of electrical
distribution system components and mitigation solutions aimed to lower arc flash energy or exposure.

INDOOR COATING SERVICES
A comprehensive portfolio of installation solutions for preparing, priming, coating and protecting interior
surfaces. Complete installation services for various
paints and coatings.
n Patch & Repair Services
n
Roofing Restoration
n
Rooftop Safety Installation
n
Roof Cleaning
n Inspection Services
n

Preventative Maintenance
Contracts
n
Air Barrier Audits
n Engineering Services
n
Maintenance & Testing
n

Installation (Turnkey
Capabilities)
n Medium Voltage/Low
Voltage Services
n

Emergency Services &
Disaster Recovery

TECHNICIAN SKILL TRAINING SERVICES
Participants receive hands-on safety and industrial skills development that they can apply on the job immediately.

Training can be scheduled on-site at customer locations or off-site at scheduled locations across the U.S.
n Compliance
n
Electrical
n HVAC
n
Mechanical
Contact your Grainger Rep for details, availability and eligibility of these and other services. Services provided by a third-party provider may be subject to a fee agreement between Grainger and the provider.

GRAINGER SAFETY SERVICES NETWORK
Contact Your Grainger Rep for Details, Availability and Eligibility Grainger’s network of health and safety service providers is committed to providing you with quality, cost-effective on-site and online services.

Consisting of a highly trained network of Certified Industrial Hygienists (CIH) and Certified Safety Professionals (CSP), as well as other safety and health professionals, Grainger possesses the expertise and resources to provide training, on-site testing and auditing, and web-based tools designed to aid in your occupational safety and health programs on a national scale.

Contact your Grainger Rep for details, availability and eligibility of these and other safety services. Services provided by a third-party safety network may be subject to a fee.

AIRBORNE CONTAMINANTS & NOISE
Audits & Assessments
Audiometric Testing/Re-Testing
Employee Exposure Monitoring
Environmental Compliance Audits
Hearing - Ear Fit Test
Hearing Loss Determinations (Work Related) -
Audiologist Reviewed
Indoor Air Quality Assessments
Industrial Hygiene Assessments
Noise Surveys (Sound Survey)
Online Respirator Medical Clearance Testing
Pulmonary Function Testing
Respirator Fit Testing
R

espirator Fit Testing (Medical Health Questionnaire) -
Physician Reviewed
Silica Dust Exposure Compliance
Ventilation System Testing
Program Development
E

quipment Specific Procedure Development
(Occupational Health Hazards)
Training
Asbestos Awareness Training
Hearing Protection Training
Respirator Training

ARC FLASH/ELECTRICAL SAFETY
Audits & Assessments
Arc Flash Analysis
Electrical Safety Assessments
Program Development
E

quipment Specific Procedure Development
(Electrical Safety)
Training
2 015 NFPA 70E/Arc Flash Electrical Safety Training
2017 National Electrical Code Training
2 018 NFPA 70E/Arc Flash Electrical Safety Training
Arc Flash (NFPA 70E) Training

EMERGENCY PLANNING & RESPONSE
Audits & Assessments
Backflow System Inspection & Service
E

mergency Light & Exit Lights Inspections & Service
F

ire Alarm System Design & Installation*
Fire Alarm System Inspection & Service
Fire Barrier Inspection & Repairs
Fire Damper Inspection & Repairs
Fire Door Inspection & Repairs
Fire Extinguisher Inspections & Service
F

ire Protection Assessment & Testing (Sprinkler
Systems)
F

ire Protection Design & Installation (Sprinkler Systems)* F

ire Protection Inspection, Testing & Maintenance
(Sprinkler Systems)
F

ire: Special Hazard Fire Suppression System Design &
Installation*
F

ire: Sprinkler Line Compliance Management & Repairs
Kitchen Hood Suppression System Inspection & Service
P

hoto Luminescent Markings Inspection & Installation
S

pecial Hazard Fire Suppression System Design &
Installation*
Exercise & Workshop
Active Shooter Practical Exercise
Business Continuity Planning Workshop
H

omeland Security Exercise Evaluation Program (HSEEP)
Exercises
Program Development
Emergency Evacuation Plans
Emergency Operations Plan
Training
Active Shooter Training
Fire Barrier Management Training
Fire Extinguisher Training
Incident Command System (ICS) Training
P

andemic Response/Personal Protective Equipment
Training
ARC FLASH/ELECTRICAL SAFETY Continued
Training
1910.269 Electrical Safety for Power Generation,
Transmission & Distribution Training
Electrical Safety Training
E

lectrical Safety: Hands-on Practical Skills Application Training
E

lectrical Systems in Hazardous Locations Training
Electrical: NICET Levels I & II Training
G

rounding & Bonding of Electrical Systems or Vacuum
Trucks Training
National Electric Safety Code Training
N

FPA 101: Life Safety Code® 2012 Edition Training
N

FPA 110: Emergency & Standby Power Systems
Training

FPA 70B: Electrical Equipment Maintenance Training

FPA 72: National Fire Alarm & Signaling Code 2019
Edition Training
N

FPA 79: Electrical Standard for Industrial Machinery
2019 Edition Training

FPA 99: Standard for Health Care Facilities 2012
Edition Training

CONFINED SPACE
Audits & Assessments
Confined Space Identification/Audits
Program Development
E

quipment Specific Procedure Development
(Confined Space)
Training
Confined Space Entry & Rescue Training

DIGITAL SAFETY TOOLKIT
Digital EHS Tools
Incident & Inspection Management
Learning Management
Occupational Health
SDS Management
Safety Assessments
Specialized Training
* Services are only available through Grainger third-party provider.

GRAINGER.COM ® | 1.800.GRAINGER
©2019 W.W. Grainger, Inc. W-BUPX134

EMERGENCY PREPAREDNESS SERVICE
Healthcare Industry Specific
Aggression Management Training
Behavioral Health Product Installation
Emergency Management Program
Assessments (Accreditation Audits)
Hazardous Materials Awareness Level Training
Healthcare All-Hazards Evacuation Plan
Healthcare All-Hazards Evacuation Training
Healthcare Business Continuity Planning
(Continuity of Operations Plan)
Healthcare Evacuation Exercise
Healthcare Security Assessment (Focused-Full)
Hospital Command Center (HCC) Workshop
Hospital Decontamination Practical Exercise
Hospital First Receiver
Decontamination Training
Hospital Incident Command System
(HICS) Essentials Training
Hospital Incident Command System
(HICS) Workshop

Loss of Community Support (96-hour) Plan

ENVIRONMENTAL SAFETY HAZARDS
Audits & Assessments
Combustible Dust Surveys
Heat Stress Assessment (Temperature Stress)
Program Development
E

quipment Specific Procedure Development
(Environmental Safety Hazards)
Training
Hot Work Training (Welding, Oil & Gas)

ERGONOMICS
Audits & Assessments
Ergonomics Assessments
Training
Ergonomics Awareness Training

LOCKOUT/TAGOUT
Audits & Assessments
Lockout/Tagout Assessments
Program Development
E

quipment Specific Procedure Development
(Lockout/Tagout)
Software
LINK360 Safety Compliance Software
eLOTO Lockout Procedure Software
Training
Lockout/Tagout Training

MACHINE GUARDING
Audits & Assessments
Machine Guarding Audits
Full Turnkey Solution
Assessment, Engineering & Design, Installation & Training Training
Machine Guarding Training

MANAGED BENEFIT PROGRAMS
Managed Footwear Program
Safety Prescription Eyewear

MATERIAL HANDLING
Audits & Assessments
Crane & Hoist Inspections
Lifting & Rigging Site Assessments
Rigging & Sling Inspections
Training
CFR 49 Hazmat Transportation Training
Crane, Hoist, Sling & Rigging Training
Crane Operator Safety Training
DOT Hazardous Materials Training
Driver/Fleet Safety Training
Forklift Lift Training
Manual Material Handling (MMH) Training

MEDICAL/FIRST AID
Audits & Assessments
AED Inspection Services
E

mergency Eye Wash Station Assessments & Inspections
Program Development
E

quipment Specific Procedure Development (Medical
& First Aid)
Training
Bloodborne Pathogens Training
First Aid/CPR/AED Training
PPE
Audits & Assessments
PPE Assessments
Vision Screening

SAFETY COMMUNICATIONS
Training
HAZWOPER 40/24/8/ Training

WORKING AT ELEVATED HEIGHTS
Audits & Assessments
Fall Protection Assessments/Audits/Inspections
Ladder Inspection Services
Program Development

quipment Specific Procedure Development (Fall
Protection)
Training
Aerial Lift Training
Fall Protection Training
Scaffolding Training

GRAINGER SAFETY SERVICES NETWORK

FOOD SAFETY
Audits & Assessments
F ood Safety Compliance/Certification (FDA/FSMA, HACCP , GFSI)
Program Development
F

ood Safety Program Development & Qualification
Temperature Monitoring & Compliance
EnviroTrakTM
VersaTrakTM
Training
Food Program Training (FDA/FSMA,
FSSC22000, GFSI, GMPs, SQF)
HACCP/Preventive Control Training

GENERAL SAFETY
Audits & Assessments
Behavioral Health Safety Risk Assessment
Bio Safety Solutions
Fleet Safety Assessments
Job Hazard Analysis
Management System Assessments,

Integration & Certification Preparation
(ISO9001/14001/22001/45001, OSHAS18001)
Mock Audits: CARF
Mock Audits: MSHA
Mock Audits: OSHA
Mock Audits: TJC (The Joint Commission)
OSHA Recordkeeping Assessments
OSHA Violation Counseling
Survey & Analysis of Building Water Systems
Sustainability Assessments
Program Development
Business Continuation Plan
E

HS Management System Program Development
(ISO9001/14001/22001/45001, OHSAS18001)
Expert Witness
Process Safety Management
Speaking Engagements
T

emporary Safety Professionals/Permanent Safety
Staffing
VPP Management Solutions Assistance
Written Safety Program Development
Training
Class 3b and Class 4 Laser Safety Training
Compressed Gas Cylinder Safety Training
Excavation/Trenching Training
M

edical Gas Maintenance Personnel Certification
Training (ASSE 6040)
Natural Gas Maintenance & Safety Training
OSHA 10/30 Training
O

SHA Hazard Communication (HAZCOM/GHS) Training
Plumbing Standards Training
RCRA Training (Solid & Hazardous
Waste Disposal)
Radiation Safety Officer (RSO) Training
Safety Culture Training
Toolbox Talks
Contact Your Grainger Rep for Details, Availability and Eligibility

CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK

INVENTORY MANAGEMENT YOUR WAY

CONTROLTAKE

OF YOUR

INVENTORY
KEEPSTOCK® SOLUTIONS HELP MAKE IT

FASTER AND EASIER TO BUY AND MANAGE

YOUR CRITICAL INVENTORY
The Grainger Shipping Box design is a registered trademark of W.W. Grainger, Inc.

WHY INVENTORY

MANAGEMENT
Why worry about inventory? Your day-to-day
management of building operations is challenging
enough. Now add on the responsibilities of purchasing,
managing and controlling your inventory needs.

Supporting all aspects of your maintenance activities
isn’t a big job, it’s a huge job.

Inventory management is the process of keeping track
of items and maintaining the balance of supply and
demand. You want to avoid having excess stock but
also can’t risk not having enough to meet immediate
needs.

Ideal inventory management means having the right
products, in the right place, at the right time—all with minimal effort and expense.

Not having properly
managed inventory can
result in significant and
unnecessary costs,
including cash spent on
items, employee labor
and storage space.

GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK
GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK
SAVE
time+ money+ space
WHAT YOU NEED.

HOW YOU NEED IT.

As organizations continue to look for more ways to reduce costs and operate more efficiently, maintenance, repair and operations (MRO) inventory has come under scrutiny.

Left unchecked, poorly managed MRO inventory creates an imbalance between product supply and demand; which can quickly lead to excess expense.

IF YOU STOCK TOO MUCH

Overstocking certain items to make sure they’re
always available can result in expensive carrying
costs—estimated to be 18–25% per year of the
average on-hand value maintained.

IF YOU STOCK TOO LITTLE

Ineffective inventory management can cause
stockouts, unorganized tool cribs and inefficient
(often manual) ordering processes. By eroding
productivity, these situations increase costs.

STOP THE RESOURCE DRAIN

Organizations need to take a two-pronged approach
to optimize financial and staff resources.

DEPLOY MRO INVENTORY MANAGEMENT

Align stocking levels based on the characteristics of
your MRO inventory mix.

LEVERAGE A PROVEN SOLUTION

Cost-effectively enhance and simplify functions from
tracking and monitoring to ordering and fulfillment.

MARKET NEED

INVENTORY

MANAGEMENT
FOR
Inactive inventory consumes resources that could be reinvested in the facility.

EXCESS INVENTORY

ON AVERAGE
of MRO inventory
items are issued
of the time
maintenance can’t
find what they need
is r eturned to
the supplier
goes unused
every year in annual carrying costs
15%-18%
25%
90% <6x/year
5%
50%
only
MONDAY

1Source: Grainger Consulting Services
GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK

INVENTORY MANAGEMENT IS NOT
A “ONE SIZE FITS ALL” SOLUTION
That’s why Grainger offers a variety of options customized to work the way you need it to.

Grainger KeepStock solutions help take costs out of your operations by making it easier to organize, track and order any size inventory. The portfolio provides Customer-Managed Inventory (CMI), Grainger-Managed Inventory (GMI) and Grainger Vending (GV) options to help you achieve the right level of management based on your unique business needs.

YOUR

KEEPSTOCK

SOLUTIONS
2 > KNOW WHAT YOU HAVE IN STOCK
>

STREAMLINE PURCHASING
>

ORDER FASTER AND EASIER
>

GENERATE BETTER REPORTING
>

REDUCE PRODUCT LOSS
KeepStock inventory
management provides
easy-to-use solutions
that will help you:

THE RIGHT SOLUTION
You choose what works best for your operations.
>

Manage it yourself:

A smartphone app and online reporting tools make it a snap >

Dedicated Grainger r
esource: Onsite support for more complex inventory needs >

V
ending solutions: 24/7 controlled consumption of fast-moving items The Grainger Shipping Box design is a registered trademark of W.W. Grainger, Inc.

We’ll work together to identify your inventory challenges, discuss where and how your inventory is used, and develop a solution that best fits your needs. You can be sure only the right solution to support your inventory management goals will be implemented.

GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK

THE SITUATION
You want complete control of your
inventory—on your terms, your
schedule, and handled by your
employees. You want it fast, easy,
accurate, and with reporting to
back it up. You want the power of
technology in the palm of your hand.

THE ANSWER
Customer-Managed Inventory (CMI)
helps give you the level of functionality
you need at no additional cost.

HOW IT WORKS
Order: Scan the barcoded
labels with your Android or iOS
smartphone and send the order.

Need approvals? No problem! We
can set up your program to have
approvals based on your needs.

Find: The CMI app does more than
just help you replenish items in
your KeepStock installation. You
can also search Grainger.com
®
and select products to add to your
order—all from one source.

Track: We can help set up your
app to help manage the movement
of Grainger products that you
need to track through your system.

Allocate product usage and track
to the appropriate user, cost center
or customer account number.

Update: Add or change items and
users to your inventory program.

Managing your CMI solution based
on your needs gives you more time
to invest back into your business.

MORE CONTROL IN YOUR
HANDS—YOUR WAY
Are your business needs
changing? Simply add items to
your inventory program, adjust
reorder points and quantities,
change item adresses, or add/
delete/change users.

Need to track items throughout
the job, process, or facility?
This app can be enabled to help
manage the movement of those
Grainger products from receipt
through consumption.

Looking to save more time?
Integrate your current system with
Grainger’s Order Management
System on Grainger.com.
®

CUSTOMER-MANAGED INVENTORY (CMI)
It’s inventory your way and the good news is, getting your inventory under control doesn’t have to be complicated. With help from Grainger, you can set up a system that’s tailored to work for you.

THE POWER OF

TECHNOLOGY

IN THE PALM

OF YOUR HAND
3 THE SITUATION
You have a significant number of
items in a single storeroom, or
maybe even multiple storage areas
across your facility. These items
are used in varying quantities at
varying times. You and your staff
often need help finding and placing
special order items in addition to
your frequently used products.

And, you may have supplies that
you need controlled access to, or
24/7 availability to certain products
but don’t have the 24/7 staff to
manage a locked storage area.

THE ANSWER
The more complex your needs, the
more a Grainger-Managed Inventory
(GMI) solution is a right fit for your
organization. With your inventory
now balanced and managed, you
can focus on business-critical tasks
that have significant impacts on
your bottom line.

HOW IT WORKS
Your Grainger Rep works with you
and our KeepStock solutions team
to determine the products and
levels needing to be managed,
as well as setting approvals for
orders if required. With or without
approvals, you have the visibility,
control and insight to all Grainger
orders—so you don’t have to worry
about overstocking or unauthorized
purchases.

On a pre-determined schedule,
your dedicated rep will
work at your facility to put
Grainger products away, place
replenishment orders, help with
inquiries, source hard-to-find
items, and help with special orders.

Your rep can also cross-reference
Grainger products to add to the
program to further consolidate,
simplify and save.

We can manage your Grainger
inventory in your storeroom,
warehouse, or various stocking
locations throughout your facility.

Have short-term storage needs?
We can arrange a trailer to store
your Grainger items. It’s that easy.

GRAINGER-MANAGED INVENTORY (GMI)
This solution helps you and your people spend less time finding and ordering products, and more time on business-critical tasks and generating revenue.

ONSITE RESOURCE HELPS

YOU MANAGE ALL YOUR

GRAINGER INVENTORY
GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK
4 THE SITUATION
You need 24/7 access to key
products—when and where you
need them. And, you’re looking
to increase productivity through
improved efficiencies, including
placing products at point-of-use.

THE ANSWER
Spend less time searching, more
time working with Grainger Vending
(GV) solutions. Our machines can
help you reduce costs by setting
limits on quantities, shifts, jobs,
or total dollar value spent. It’s
a great way to control product
consumption, too. Plus, you get
detailed inventory reporting to help
you better manage your budget.

HOW IT WORKS
Grainger works with you to identify
items to be managed, and select
the right machine(s) to do the job.

We deliver and set up the filled
machines so they’re ready to use
as soon as they’re plugged in.

Employees can scan their ID badge
or enter their employee code,
use the touchscreen to select the
item, remove the product from
the machine and log out. It’s easy,
reliable, secure and controlled.

Items and quantities removed are
automatically uploaded so you can
rest easy knowing replenishment
orders are processed accurately
and in real time. Now you know
you’ll have the right products, in
the right quantities, at the right
time.

Your Grainger Inventory
Management Specialist will refill
the machines as needed to meet
your usage patterns.

GRAINGER VENDING (GV)
The ideal choice when you require controlled access to
consumable inventory, as well as durable items that can be used and returned.

GET 24/7 CONTROLLED

CONSUMPTION OF

FAST-MOVING ITEMS
5 REDUCE WASTE,

LOSS AND COSTS

WORKING TOGETHER

EVERY STEP OF THE WAY
• W e will work with you to understand your inventory
management goals and challenges
•
Based on our collaborative work, we determine

the best solution (or solutions) to meet your
specific needs
•
W
e will collect data for the products you want
managed and cross-reference items as needed,
then load them into our system
•
W
e then launch your KeepStock inventory program,
assuring that we integrate with your systems and
your employees
•
W
e will stay in close contact with you and your
employees to make sure you’re getting the best
value for your program

CUSTOMIZED FOR YOUR BUSINESS
• Turn-key replenishment on your schedule
• Adjustable minimum/maximum reorder points
•
Or
der control points to align with your
operational needs

THE BENEFITS
• Reduce your pr ocurement costs for indirect
supply purchases
•
Keep your team focused on the work to be

done rather than looking for supplies
•
Optimize inventory levels—no overstocking

or stockouts
GRAINGER’S

CONSULTATIVE

APPROACH
GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK
6 ONGOING SUPPORT
Great customer care doesn’t end after your KeepStock solution is installed or implemented. You receive reliable, ongoing support for the solution or solutions you have, just like always. There’s no cost to you for support after the solution—no unexpected fees or hidden costs. Simply the support you need for the inventory you have.

Get Great Customer Care from Knowledgeable Grainger Reps Your Grainger Rep will help you through the process of managing your MRO inventory. They work with you to set up your KeepStock solution and provide continued support during and after the installation. As your inventory management needs evolve, they help you add and change items, update program users, run reports, perform general program maintenance, and more.

Dedicated Onsite Service Representatives
With more than 1000 Onsite Service Representatives servicing Grainger-Managed Inventory (GMI) programs, you get customized knowledgeable support for your program. They make sure you have the MRO supplies on your shelves, at the inventory levels you select. Plus, they check your inventory levels on a schedule you both set, help put away reordered products, and help you find the products you may not stock
but need from time to time to keep your
operation running.

Helpful Customer Service
Providing exceptional customer service
continues to be the hallmark of our business.

As always, you can count on our Grainger
customer service reps to help answer your
account and invoice questions, order
products, process returns, source
hard-to-find items and more!
YOUR

KEEPSTOCK SOLUTIONS

SUPPORT TEAM
7 KEEPSTOCK SOLUTIONS HELP YOU

BETTER IDENTIFY, ORGANIZE AND

MANAGE YOUR INVENTORY

GET ORGANIZED
Up to 22% of the time, maintenance employees leave a stockroom without the proper material or quantity.* Plus, if products are inventoried in multiple locations, your employees are spending a lot of time putting inventory away.

By consolidating orders to one supplier, you can more effectively manage your inventory—helping your employees get what they need, the first time and every time.

ORDER FASTER
Replenishing inventory may involve up to 30 steps, 5 people, 5 hand-offs and 1 approval.* Then there’s the issue of ordering more product than you need—60% of on-hand MRO inventory levels exceed a 1-year supply.* How much time, money and space are you wasting?

REDUCE EFFORT
Ordering, finding, tracking and replenishing products takes time . . . costs money . . . and takes up a lot of space. Having multiple suppliers just compounds the confusion, so finding a way to consolidate and simplify each step of procuring and managing your inventory should be a priority. Think about how much easier your day would go if you could procure products from 1 supplier. And, that 1 supplier could help you manage and organize your inventory with the best Grainger KeepStock inventory management solution for your needs.

SAVE
5 people, 5 hand-offs, and
1 approval may be involved in
replenishing inventory*
30STEPS,
Up to
of inventory sits on shelves and
never gets used*
10%
Up to
of on-hand MRO inventory
levels exceed a 1-year supply*
60%
Up to
of MRO inventory items
are inactive for more
than 12 months*
50%
Up to
$

YOU NEED, WHEN
WHAT
MADE EASY.

YOU NEED IT,
GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK
8 * Source: Grainger Consulting Services
SCAN.

ORDER.

DONE.

AUTOMATE YOUR REORDERING PROCESS

YOUR ORDERS

FASTER AND EASIER
MANAGE
GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK

OPTIMIZE YOUR WORKFLOW FROM PROCUREMENT TO PAYMENT
Work more efficiently and effectively every step of the way. Take control of your inventory spend and budget, improve your processing times, manage your inventory risk, and receive detailed inventory information to make decisions that help improve your bottom line. Streamline your entire procure-to-pay process by integrating your KeepStock purchases with your internal purchasing system, Grainger.com ®
or your eProcurement system.*
Grainger Order Management System Helps You:
• Manage one sign-in system for both your online and KeepStock or ders • Create up to 4 levels of order approvals
• View your order history for all your Grainger orders
• Set spend limits for multiple users
• Track the status of your order
• Change delivery information for standard shipping orders • Set order approval controls
• Receive order confirmations
* Check with your Grainger Rep and your eCommerce department to determine eProcurement system compatibility.

ORDER ARRIVES

RECEIVE AND

APPROVE ORDER

SCAN TO

REORDER

RECEIVE
ORDER

CONFIRMATION

ORDER SHIPS
9 DETAILED REPORTING HELPS YOU

KEEP YOUR INVENTORY IN CHECK
KeepStock reporting provides detailed information
on the activity of the items being managed. Get usage
specifics and track purchasing history, quantities, and total spend. Sort by transactions, cost centers, employees and more. Get the information you need so you can better
monitor product consumption and receiving activities.

KNOW THE WHAT, WHERE AND HOW MUCH

WITH YOUR INVENTORY

DATA INTELLIGENCE

BETTER DECISIONS
BETTER
FOR

KNOW THE VALUE OF THE PROGRAM

TO YOUR ORGANIZATION
You know the value of your efforts goes beyond the
day-to-day activities. KeepStock reporting can also help you measure the total value of the installation
—how we are
helping your bottom line. We can generate detailed reports for you; showing how you have helped take costs out of
managing your inventory with your KeepStock install by
reducing expenses and waste.

GET STARTED TODAY! CONTACT YOUR GRAINGER REP OR
VISIT GRAINGER.COM/KEEPSTOCK
10 Grainger KeepStock

Inventory Management

is the solution you need for
the inventory you have.

READY . . . SET . . . GO!
CONTACT Your Grainger Rep
CALL 1-888-753-0019
CLICK grainger.com/keepstock

SAVE TIME, MONEY

AND SPACE
Keep Stock
®
A Managed Inventory Solution
Grainger KeepStock solutions are designed to help you
control costs by:
•
Str
eamlining processes—saving you time and money
• Optimizing inventory—saving you money and space
• Improving efficiency and productivity—saving you time • Reducing stockouts—saving you time and money

GRAINGER KEEPSTOCK SOLUTIONS
At Grainger, KeepStock solutions mean managing inventory the right way. Anything less will not help you get the cost reductions, productivity gains or stockroom improvements that you’re looking for.

That’s why Grainger offers a variety of KeepStock solutions —because
we know that no one solution is right for every business.

AVOID STOCK-OUTS
of critical products

IMPROVE

INVENTORY PROCESSES
to help boost productivity
REDUCE LOSS and
avoid waste of frequently
used pr
oducts

REDUCE COMPLEXITY
in purchasing and managing
your inventory
FINANCIAL SAVINGS and more
WORKING CAPITAL to invest
back into your business

BETTER DATA

INTELLIGENCE,
reporting and tracking
WHAT’S

IN IT FOR
YOU!
G means going the extra mile to help you
manage your inventory and take costs out of your business.

GRAINGER’S GOT YOUR BACK
®
®
GRAINGER.COM/KEEPSTOCK | 1-888-753-0019
©2018 W.W. Grainger, Inc. W-AOBT103
Grainger KeepStock® solutions are subject to customer
eligibility and agreements.

PUTTING YOUR INVENTORY TO WORK WITH

TOTAL INDIRECT MATERIAL MANAGEMENT
©2018 W.W. Grainger, Inc. W-AOBT133

INVENTORY SPECIALIST
Storeroom Support
Customer Systems & Processes
Replenishment + Issuance
Spot Buy + Sourcing
Procurement Expertise

MATERIAL MANAGEMENT
Storeroom Operations
Grainger Systems & Processes
Requisition Management
Data Collection + Analysis
Inventory Optimization
+
To learn how KeepStock Managed MRO can work at your facility, contact your Grainger rep

CURRENT STATE

CHALLENGED BY

YOU WANT

DEDICATED

PROCUREMENT TEAMCENTRALIZED

STOREROOM

SUBSTANTIAL

MRO INVENTORY

INADEQUATE

TASK EXECUTION

INACCURATE

INVENTORY DATA

INEFFICIENT

TECHNOLOGY

INSUFFICIENT

STOREROOM STAFF

LARGE OR COMPLEX

ENVIRONMENT

INSIGHT

FROM DATA
& REPORTING

CONTROL

OVER ALL

PROCUREMENTVISIBILITY

TO INVENTORY

CHANGES

COMPLIANCE

WITH INVENTORY

PROCESSES

INTRODUCING

PERSONNEL & STOREROOM SOLUTIONS

MANAGED MRO
ADD EXPERTISE Benefit from Grainger’s MRO
product knowledge and inventory management skills.

CREATE ACCOUNTABILITY Ensure material management
tasks are completed with precision and efficiency.

KeepStock Managed MRO provides dedicated, expert and onsite support services for both Grainger and non-Grainger product to help you save time and money.

REDUCE MATERIAL EXPENSE LEVERAGE INVENTORY INVESTMENT INCREASE TECHNICIAN PRODUCTIVITY Decrease costs through product
substitution and standardization.

Put your inventory to work and optimize
amount kept on hand.

Put the right products in the right place
at the right time.

Contact Your Grainger Rep, Call 1-888-753-0019
or Click grainger.com/keepstock

GRAINGER

VENDINGGV
Controlled access at your point-of-use locations.

GRAINGER

VENDINGGV
WHAT’S

IN IT FOR
YOU!
Machines bring visibility to usage by department,
employee, or job—helping you take costs out of
your business.

CONTROL ACCESS
without requiring a
staffed supply area.

INCREASE PRODUCTIVITY
by reducing the time it takes to
walk to the supply room.

AUTOMATE ORDERING to help
reduce stockouts and obsolete
inventory.

EMPLOYEE ACCOUNTABILITY
for their product transactions.

REDUCE INVENTORY SPEND
through controlled access,
resulting in reduced loss.

RELIABLE DATA
INTELLIGENCE with accurate
reporting and tracking for better
forecasting and planning.

IMPROVE COST ACCURACY
by job, department, employee, or
other defined parameters.
24/7 availability of key
products at point-of-use
or where needed.

THE SITUATION
You need 24/7 access to key
products—when and where you
need them. And, you’re looking
to increase productivity through
improved efficiencies, including
placing products at point-of-use.

HOW IT WORKS
Grainger works with you to identify
items to be managed, and select
the right machine(s) to do the job.

We deliver and set up the filled
machines so they’re ready to use
as soon as they’re plugged in.

Employees can scan their ID badge
or enter their employee code,
use the touchscreen to select the
item, remove the product from
the machine and log out. It’s easy,
reliable, secure and controlled.

Your Grainger Inventory
Management Specialist will refill
the machines as needed to meet
your usage patterns.

GRAINGER VENDING (GV)
The ideal choice when you require controlled access to
consumable inventory, as well as durable items that can be used and returned.

SECURITY.

CONVENIENCE.

CONTROL.

GRAINGER

VENDINGGV
SECURITY. CONVENIENCE.

CONTROL.
© 2018 W.W. Grainger, Inc. W-AOBT103

HOW TO GET IT
CONTACT Your Grainger Rep
CALL 1-888-753-0019
CLICK grainger.com/keepstock
Grainger KeepStock Secure® solution is subject to customer eligibility established by an onsite assessment conducted by Grainger’s Consulting Services group, mutual agreement on frequency of use of Grainger personnel resources and other agreements.

KeepStock® Inventory Management
You need the right products, in the right place, at the right time to keep your production producing and your operations operating. Because Grainger understands every inventory situation is unique, we offer a broad range of solutions that can help meet specific requirements for your business.

THE RIGHT SOLUTION
Effectively managing inventory offers a prime opportunity to help take costs out of your business. You choose what works best for your operations.

> Manage it yourself:

A smartphone app and online reporting tools make it a snap > Dedicated Grainger resource:

Onsite support for more c omplex inventory needs
> Vending solutions:
24/7 controlled consumption of fast-moving items
CONTACT your Grainger rep
CALL (888) 753-0019
VISIT grainger.com/keepstock

CUSTOMER-MANAGED

INVENTORYCMI
Web-based tool provides the flexibility
to manage your inventory your way.

NEW &

ENHANCED
TOOLS
Do-it-yourself
solutions put
you in control.

It’s inventory
your way!
Seamless functionality across multiple devices.

THE SITUATION
You want complete control of
managing your inventory—on
your schedule and handled by
the employees you choose.

You want it done fast and with
data to back it up.

THE ANSWER
KeepStock CMI gives you the
control, flexibility and instant
access you need to effectively
manage your inventory at no
added cost.

HOW IT WORKS
Scan: Scan the barcoded labels with
your Android or iOS smartphone* and
send the order. Need approvals? We’ll
help you set up your program to have
multiple approvals based on your needs.

Order: Reorder products and reduce
manual errors with barcode scanning of
your stocked items.

Find: Search the online Grainger catalog
or Grainger.com® and select products to
add to your order—all from one source.

Manage: Add items to your inventory
program, edit users and print labels for
your bins right when you need them.

KEEPSTOCK CMI TOOLS
It’s inventory management your way. You call the shots. Now you can access tools and data that help you create custom inventory solutions, leaving you more time to invest back into your business.

WHAT YOU NEED,

WHEN AND WHERE

YOU NEED IT
SM
* Easy-to-use scanners are available if you don’t have mobile access.

Search, add and
edit products
Scan to reorder items
Print labels
Discontinued item
management
Set min/max levels
and restrictions

CUSTOMER-MANAGED

INVENTORYCMI

IMMEDIATE

SOLUTIONS

FOR YOUR

BUSINESS
Apple, the Apple logo and iPhone are trademarks of
Apple Inc. App Store is a service mark of Apple Inc.

Google Play is a trademark of Google Inc.

YOU’RE IN CONTROL
Set min/max levels, print labels, edit
products, scan to reorder and get instant
access to your CMI program on your terms.

DATA INTELLIGENCE
Access your order history
to make informed decisions
about inventory levels.

INDEPENDENCE
Reorder and receive your
Grainger products. Check and
adjust as you see fit.

SIMPLICITY
The technology to manage
your Grainger inventory is
right in your hand.

STREAMLINE PURCHASING
Scan barcodes and send directly
from the Grainger KeepStock app.

APPROVALS
Set up approvals and con-
trols within your program.

VISIBILITY
Easily add, edit and
replace items you need
on hand.
90129416325@1
90129416325@1
3 Hand And Body Lotion Bottle
Max:12 PK/48
Min: 1 PK/48 Def.OrdQty: 1
Part#:

Loc: Bathroom Supplies
10A013
90129104357@1
90129104357@1
6 Medium Hard Viton O-Ring, 3.475"
Max:10 PK/5
Min: 5 PK/5 Def.OrdQty: 1
Part#:

Loc: Utility Closet
1KAV5
90129104358@1
90129104358@1
2 Medium Hard Viton O-Ring, 3.725"
Max:10 PK/2
Min: 5 PK/2 Def.OrdQty: 1
Part#:

Loc: Utility Closet
1KAV7
90129537992@1
90129537992@1
1 Tough Guy Brush
Max:5 EA/5
Min: 2 EA/5 Def.OrdQty: 1
Part#: Brush
Loc: Brush Bins
1VAG2
90129603059@1
90129603059@1
9 Warehouse Fan, #1
Max:5 EA/1
Min: 3 EA/1 Def.OrdQty: 1
Part#: Fan 1
Loc: Fan Room, Shelf 2
1VCE8
90129537620@1
90129537620@1
0 Metal Screw Flat #6 5/8 In L Pk100
Max:10 PK/100
Min: 5 PK/100Def.OrdQty: 1
Part#:

Loc: Utility Closet
1WA13
90129118058@1
90129118058@1
6 8mm Metal Swivel Branch Tee
Max:6 PK/5
Min: 3 PK/5 Def.OrdQty: 1
Part#:

Loc: Technician Room
1WUZ6
90129523713@1
90129523713@1
4 Safety Knife 6 In. Black/Blue
Max:40 EA/1
Min: 20 EA/1 Def.OrdQty: 1
Part#:

Loc: Utility Closet
1YJD2
90129523406@1
90129523406@1
4 Safety knife
Max:40 EA/1
Min: 20 EA/1 Def.OrdQty: 1
Part#:

Loc: Utility Closet
20F888
90129615375@1
90129615375@1
7 Carbon Steel Fully Threaded 12-
Point Flange Head C
Max:5 EA/5
Min: 3 EA/5 Def.OrdQty: 1
Part#:

Loc: Technician Room
21C348
90129527037@10
90129527037@10
7 Blue Safety Knife
Max:30 EA/1
Min: 20 EA/1 Def.OrdQty: 10
Part#:

Loc: Utility Closet
25D164
90129615376@1
90129615376@1
1 Carbon Steel Fully Threaded 12-
Point Flange Head C
Max:5 EA/10
Min: 3 EA/10 Def.OrdQty: 1
Part#:

Loc: Technician Room
2FB36
90129615378@1
90129615378@1
8 1-1/4" Steel Drywall Screws with Flat
Countersunk
Max:10 EA/500
Min: 5 EA/500Def.OrdQty: 1
Part#:

Loc: Technician Room
32MT20
90129615379@1
90129615379@1
0 3" Steel Drywall Screws; PK200
Max:15 EA/200
Min: 10 EA/200Def.OrdQty: 1
Part#:

Loc: Technician Room
32MT54
90129104359@1
90129104359@1
5 Zinc Yellow Fastener, 5/8"-18, 1-1/2"
Max:10 PK/10
Min: 5 PK/10 Def.OrdQty: 1
Part#:

Loc: Utility Closet
38TN60
90129104360@1
90129104360@1
9 Zinc Yellow Fastener, 5/8"-18, 3"
Max:10 PK/5
Min: 5 PK/5 Def.OrdQty: 1
Part#:

Loc: Utility Closet
38TT18
90129104361@1
90129104361@1
3 Zinc Yellow Fastener, 5/8"-18, 3-1/2"
Max:10 PK/5
Min: 5 PK/5 Def.OrdQty: 1
Part#:

Loc: Utility Closet
38TT20
90129104362@1
90129104362@1
1 Zinc Yellow Fastener 5/8"-18, 4"
Max:10 PK/5
Min: 5 PK/5 Def.OrdQty: 1
Part#:

Loc: Utility Closet
38TT22
90129456039@1
90129456039@1
3 Replacement Lens Clear Scratch-
Resistant
Max:10 EA/1
Min: 5 EA/1 Def.OrdQty: 1
Part#:

Loc: Safety Supply Room
3KN11
90129615328@1
90129615328@1
9 AA Standard Battery, Duracell
CopperTop, Alkaline,
Max:10 EA/4
Min: 5 EA/4 Def.OrdQty: 1
Part#:

Loc: Janitorial Closet, Shelf 1
3WA11
90129615408@1
90129615408@1
5 Lime Stripe Safety Vest
Max:20 EA/1
Min: 10 EA/1 Def.OrdQty: 1
Part#:

Loc: Safety Supply Room
4CWE6
90129615411@1
90129615411@1
8 Lime Stripe Safety Vest
Max:10 EA/1
Min: 5 EA/1 Def.OrdQty: 1
Part#:

Loc: Safety Supply Room
4CWE7
90129521495@4
90129521495@4
2 Ear Muffs Over-The-Head Nrr 25db
Max:12 EA/1
Min: 6 EA/1 Def.OrdQty: 4
Part#: Headset
Loc: Safety Bin
4T016
90129505604@10
90129505604@10
9 Condor™ Clear Lens
Max:20 EA/1
Min: 10 EA/1 Def.OrdQty: 10
Part#: Condor Glasses
Loc: Safety Bin
4VCL8
90129615333@1
90129615333@1
8 3 HP Sewage/Trash Centrifugal
Pump, 1 Phase, 230 V
Max:3 EA/1
Min: 2 EA/1 Def.OrdQty: 1
Part#:

Loc: HVAC Utility Closet
4YU37
90129615335@1
90129615335@1
5 Label,2-5/8"Wx1"H,1500 No. of
Labls,PK50
Max:5 EA/50
Min: 2 EA/50 Def.OrdQty: 1
Part#:

Loc: Office Supply Room
5NHH1
90129159561@1
90129159561@1
3 Multi-Bit Screwdriver
Max:10 EA/1
Min: 1 EA/1 Def.OrdQty: 1
Part#:

Loc: Technician Room
6CMY3
Company: * Program: IOS.TEST.PROGRAM 3 Program Group: Default File Created: 10/18/2017 Label Template: 1X2-5/8 Page: 11 of

CUSTOMER-MANAGED

INVENTORYCMI
WHAT’S IN IT FOR YOU!
Take control your way and get the right products,
in the right place, managed with the right solution.

IS CMI FOR ME?
• Do you have critical inventory you can’t do without? • Need to monitor supplies in a controlled environment or in areas with restricted access?
• Do you keep inventory in remote locations and can’t afford to run out of stock?
• Want a better system for managing and organizing your critical items? KeepStock CMI can help solve your inventory challenges.

TO GET STARTED
CONTACT your Grainger rep
CALL (888) 753-0019
VISIT grainger.com/keepstock

TECH SUPPORT
TECH (877) 877-6408
Got questions after you’re all set up?
Our dedicated KeepStock technical support
team is here to help.

Grainger KeepStock solutions are subject to customer eligibility and agreements.

CUSTOMER-MANAGED

INVENTORYCMI

LABOR SAVINGS
Case Study
GRAINGER.COM® | 1.800.GRAINGER

GRAINGER CONSULTING SERVICES
A prestigious University had decentralized their maintenance services department to better serve their students, faculty and visitors on the 28-acre campus. By distributing the forty maintenance technicians and tradespeople to four districts, they became closer to the end customer, more familiar with the buildings and assets, and significantly reduced travel time.

The challenge, however, was that there was still just one central stockroom and all of the parts and supplies were requisitioned from that location. Because of this, the gains that were realized from being close to the customer were lost on waiting, searching, requisitioning and receiving parts delivered from the central stockroom.

OVERVIEW
KeepStock Onsite® Creates a $355,000
Annual Savings Opportunity
©2018 W.W. Grainger, Inc. W-ALS4306 Confidential
2 ©2018 W.W. Grainger, Inc. Confidential
There were several findings, but two of them stood out to all of the decision makers.

1. The cost of paying the technicians and tradespeople to do the requisitioning and receiving of the parts needed to complete their work was higher than the total spend of the products they were in need of (see Diagram 1).

2. Just 8% of the dollars spent by the University accounted for more than 50% of the parts needed repeatedly by the technicians and tradespeople (see Diagram 2).

It was also realized that a majority of work orders were extending over two days while they waited for low cost parts to be delivered. This waiting time negatively impacted work order completion rates—a metric important to the maintenance department and their customers alike.

KEY OBSERVATIONS
& FINDINGS
PROCESS Working with Grainger Consulting Services, the first activity was to identify the current state processes and associated costs. This baseline gave a reference point to model recommendations against. Grainger Consulting Services modeled different stocking levels, price thresholds and district-based stockrooms. The analysis was used to bring all of the stakeholders together, including: Maintenance, Procurement, Finance and Suppliers. Before a single piece of inventory was moved out of the stockroom, there was widespread buy-in for the change.

Parts Spend vs.

Process (Labor) Cost
$100,000
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$-
Product Labor
1 28
55 82
109
136
163
190
217
244
271
298
325
352
379
406
433
460
487
Diagram 1
3 ©2018 W.W. Grainger, Inc. Confidential

TIME SAVINGS
was equivalent to
new people
3 hiring

RECOMMENDATIONS
& IMPACTS
After careful data analytics and the real-world input from the maintenance technicians and tradespeople, Grainger Consulting Services recommended KeepStock Onsite (Grainger’s unique vendor-managed inventory solution) to stock four local stockrooms at each of the districts with frequently needed, low-dollar parts and suppliers. With less than 300 unique SKUs stocked, stocking levels were set by evaluating historical usage and factoring in anticipated seasonal fluctuations.
• Impact: This inventory solution was nicknamed “Grab and Go” capturing the change from laborious requisition which was replaced by free issuing low-dollar parts. • Impact: The University estimates it saves $355,000 annually in labor costs—time which was wasted was now reallocated to
revenue producing activities. This time savings
for technicians was equivalent to hiring three new
people.
• Impact: The same day fixes for work orders has
improved by 20%, which reduces the time to fix and increases customer satisfaction.

This solution did not change the amount of money that the University spent on parts and supplies year over year. It simply put the parts closer to the assets and the people.

By using Grainger’s KeepStock Onsite offering, the customer is also relieved of any replenishment activities and yet they retain complete oversight through Grainger’s electronic approval process and detailed reporting.

Grainger KeepStock Onsite solution is subject to customer eligibility established by an onsite assessment conducted by Grainger’s Consulting Services group, mutual agreement on frequency of use of Grainger personnel resources and other agreements.

Diagram 2
495 $58 K 2530
1849 $68 K
2216
# OF SKUS SPEND FREQUENCY
Inventory Requisition
8% of the spend is creating over 50% of the transactions Results may not be typical for all customers.

Let’s Get Connected
We recognize the importance of meeting
supplier diversity goals and have simple
solutions to help you get started.

SAVE TIME AND MONEY
Our program provides quality products in categories from cleaning and maintenance supplies to tools and fasteners, that help meet your diversity requirements and satisfy
Grainger quality standards .

HELP MEET PURCHASING REQUIREMENTS
Customers win because we keep track of their Direct Tier 2 diversity purchases from Grainger and we can report
results quarterly.

A DIVERSITY SOURCE YOU CAN TRUST
Each supplier must be certified by and satisfy the ownership requirements for one of the following organizations:
• National Gay & Lesbian Chamber of Commerce • Women’ s Business Enterprise National Council • National Minority Supplier Development Council • Small Business Administration
If you're a supplier and want to participate in the
Grainger Supplier Diversity Program, register at
https://app.suppliergateway.com/grainger
For current Grainger diversity supplier product listings, go to the Grainger.com® homepage and enter Supplier
Diversity in the search bar.

Class Supplier Brand(s) Category Class Supplier Brand(s) Category 2016 Suppliers 2016 Suppliers
WBE Lightsmith Hole Pro Hand Tools
MBE Loyal International “NuSet” Nu-Set Keyed Products
WBE Master Manufacturing Co. Master Caster Material Handling WBE Maxit Designs Maxit Safety
MBE Mesa Safe Mesa Safe Fire and Wall Safes
WBE Midwest Acorn Nut Midwest Acorn Nut Fasteners
WBE Moxie Trades Moxie Trades Footwear
WBE Mr. Chain Mr. Chain Crowd Control
VBE NCP BARK MARK Striping and Marking Paint
& Chalk
MBE Newborn Brothers & Co. Newborn Metalworking
MBE Newtex Industries Zetex, Zetex Plus Specialty Brands WBE Oasis International Oasis Plumbing
MBE Officemate International
Corporation Officemate Office Products
MBE Onyxx Everest Engine & Motor Oils,
Transmission Fluid
MBE Paradigm International, Inc. Stardust & Starpower Safety and Cleaning VBE Petoskey Plastics GreenCore Products Compostable Can Liner WBE Petrochem Petrochem Lubricants
WBE Pliszka’s Adventures Headline It! Safety
MBE Portagas Portagreen Gas Detection
WBE Posi Lock Puller Posi Lock Hand Tools
MBE Power Drive Power Drive Power Transmission
VBE Powerhouse Two Power XP Batteries
MBE Qspac Industries Non-branded Packaging Supplies
WBE R. Ross Shafer Coolshirt Cooling Vests
MBE R&R Textiles (TA)
R&R, Spa Comfort,
Comforel, Micro-Denier,
Microvent, Hotel Basics,
Gold Choice
Hospitality - Sheets, Towels,
Pillows
WBE RAE Products RAE Pavement Paints
VBE Reading Consumer Products Motorscrubber Cleaning Equipment WBE Retrac dba Think Safe First Voice, Heart Sine Safety MBE Revco Industries Black Stallion Welding Clothing
MBE Rohtek Rohtek Programmable Controller and
Display Accessories
MBE Scitec, Inc. Scitec Communications
VBE Se-Kure Domes & Mirrors GGS private label Convex & Dome Mirrors WBE Selecto, Inc. Selecto Plumbing
WBE Seymour of Sycamore, Inc. Seymour Cleaning
WBE SGM Rangerlock Security
MBE Simpson Electric Simpson Electric Test Equipment
MBE SKM Industries, Inc. Super Met-Al Marker Metalworking LGBT Skolnik Industries Skolnik Transport, Salvage and
Overpack Drums
MBE Solartech Power Solartech Power Solar Panels and Accessories WBE Standard Portable Standard Portable Lighting
MBE Steren Steren Plug-In Power Supplies
WBE Stexley Brake Tape Wrangler Packaging Sealing Dispensers WBE Stock Electronics Telectron Material Handling
VBE Superior Glove Superior Hand Protection
WBE Sutong Tire Hi-Run Tires and Wheels
VBE Synco Chemical Super Lube Penetrants & Lubricants
MBE Tectus (formerly) G2 Fuel G2 Lubricants
MBE Tempco Tempco Electrical
WBE The M.K. Morse Co. Morse Tools
VBE The Tapmatic Corporation Tapmatic Machining
WBE Thogus Products Company Thogus Plumbing
WBE Tile Sizer Tilesizer Tiling Miscellaneous Tools
MBE Tradex International Ambitex Disposable Gloves
WBE Triton Triton Pegboards & Slat Wall
Accessories
MBE Truseals International, LLC Truseals Rotary Shaft Seals MBE UltraViolet Devices UVDI Lighting, Ultraviolet
VBE Uniweld Products Uniweld Abrasives and Welding
MBE V O Baker Company Hardman Epoxy, Adhesive and
Gasket Removers
VBE Warrensville Knife Warrensville Hand Tools
WBE Westcott Distrib. dba
GoatThroat Pumps GoatThroat Pumps Drum and Barrel Pumps WBE Wexco Wexco, Dyna Fleet
WBE Whitney Tool Whitney Tool Special Taps
MBE Wooster Products, Inc. Wooster Products Safety
WBE Absorbant Specialties unbranded Specialty Brands
WBE Action Chemical Action Chemical Disposable Gloves & Masks WBE Addendia Hi & Dri Storage Pallets
WBE Advance Components No Brand Fasteners
VBE Aero Tech Light Bulb Aero Tech Lighting
VBE Allegro Industries Allegro Confined Space
WBE Aluf Plastics Tough Guy Can Liners
WBE American Moving Supplies Pro Series, AMS Packaging
WBE Americover Americover Doors & Curtain Walls
WBE Apex Beverage ICE-O-MATIC Refrigeration, Ice Machines MBE Armor Concepts Door Jamb Security
MBE Artu USA Artu Multi Material Bits
VBE AST Industries inc. dba Anti-Seize Anti-Sieze Pipe Sealant Tape MBE Atlantic Blower Atlantic Diffusers Pumps
VBE AVS Industries AVS Industries Cloth and Duct Tapes
WBE B&L Distributors Tough Guy Cleaning
WBE B&P Manufacturing B&P Manufacturing Material Handling VBE Benchpro BenchPro Workbenches
WBE Berner Berner Ventilation/Air Curtains
WBE Bishop Wisecarver Bishop Wisecarver Linear Motion
MBE Buhin Buhin Confined Space Ventilation
MBE Building Health Check No Brand Specialty Brands
MBE Byo Globe Vital Oxide, K-Gold,
RTC, Odorklenz Disinfectants and Sanitizers
MBE C & A Scientific BIO LION Laboratory Centrifuges
WBE C.P . Lab Safety CP Lab Safety Lab Supplies
WBE Casco Mfg. C-Matt Institutional Mattresses
WBE Caster Connection Apex Casters
MBE CEC Industries Luma Pro Miniature Bulbs
WBE Cellucap Manufacturing Co. Cellucap Safety
WBE Chemglass Corning/Chemglass Lab Supplies
MBE Choctaw-Kaul No Brand Hand Protection
WBE Clearsounds CLEARSOUNDS
Clocks, Phones, Phone
Accessories, TV Accessories,
Strobe and Flashing Lights
WBE Coilhose Pneumatics Coilhose Pneumatics Specialty Brands WBE Columbia Sanitary Products, Inc. SaniLav Plumbing
WBE Cooper-Atkins Cooper-Atkins Test Instruments
WBE CP Industries Premiere Cleaning
WBE Crown Products Poopy Pouch Cleaning
WBE Dicke Tool Dicke Traffic Control Products
MBE E James & Company Unbranded Raw Materials - Rubber
WBE Eco Trend Cases Eco Style Office Products
MBE Eco-Absorbent Technologies Eco Absorb Safety
WBE Electric Motors & Specialties EM&S Motors
WBE Equipment Supply Co - ESCO Unbranded Brake and Wheel Tools WBE ERB Industries ERB PPE
WBE Everlights Everlights Recycling Recycling Kits (3119) WBE Ex-cell Kaiser Smoker’s Oasis Cleaning
VBE Fraser Optics Fraser Optics Binoculars
VBE GI Packaging No Brand Shipping Cartons
MBE Grape Solar Grape Solar Solar Panels and
Accessories
VBE Guardian Electric Mfg. Guardian Electric Controls
WBE HD Sales Swift, Novus Products Hand Tools
WBE High Purity Standards High Purity Chemicals
MBE Hilton Trading dba Accubanker Accubanker Office Products WBE Holdrite Holdrite Water Heater Accessories
MBE IBS Solutions Tough Guy Can Liners
MBE Ideal Shield Ideal Shield Guardrails
WBE Impact Absorbant X-SORB, Rock Solid Specialty Brands WBE Imperial Imperial Tools
WBE Incentive Gallery unbranded Incentives
VBE Insinger Insinger, Commander Hospitality
MBE International Chemical Products PickleX Specialty Paints, Coatings and Additives
WBE Jelmar CLR, Tarn-X Cleaning
MBE JS Products Steelman, Bend-a-Light Tools, FVM
MBE KellyRest Kelly Rest Office Products
WBE KGP Logistics Premier Test Equipment
WBE Lavelle Industries Korky Toilet Parts
MBE Liberty Glove No Brand Hand Protection
© 2016 W.W. Grainger, Inc. W-YOBT115-02 8SP5261
To apply as a prospective Grainger diverse supplier,
go to https://app.suppliergateway.com/grainger
2018
Corporate
Social
Responsibility
Report
www.graingercsr.com
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
2 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Operating
Responsibly
Commitment to
Ethics and Integrity
Business Conduct
Guidelines
Ethics Training
Anti-Bribery and
Corruption
Stewardship in the
Supply Chain
Supplier Code of Ethics
Supplier Diversity
Supplier Scorecard
Ethical Sourcing
Maximizing Product
Quality in our Private
Label Brands
Corporate Governance
Governance at Grainger
Corporate Social
Responsibility Governance
Valuing Our
People
Workplace Safety
Safety Performance
Safety Culture
Systems and
Partnerships
A Place to Thrive
Team Member
Experience
Total Rewards
An Inclusive and
Diverse Culture
Sustaining Our
Environment
Our Approach
Our Operations
Our Products
Our Supply Chain
Our Operations
Greenhouse Gas Emissions
Recycling and Waste
Resource Efficiency
Our Products
Helping Customers Reach
their Sustainability Goals
Environmentally Preferable

Products (EPP) and Services
Sustainability Training
Our Supply Chain
Supply Chain Stewardship
Transportation
Serving Our
Communities
Disaster Preparedness
and Response

American Red Cross
Team Member Activation
Education and
Workforce Development
Giving
Team Member Activation
Local Civic and
Community Engagement
Matching Gifts Program
Community Grant Program
Serving Our Communities
Survey
Grainger Around the Globe
A Letter From
Our Chairman
and CEO
A Letter From
Our Executive
Sponsor
Report Content

Index
Table of Contents
About Grainger
Our Business
Our Reach
Our Brands
Our Strategy
About This Report
Grainger At A Glance
Materiality at Grainger
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our
Value Chain

GRAINGER AT A GLANCE
Net Sales, $ billion 10 10.1 10.41
Suppliers 4,800 5,100 5,200

Products Stocked, million

1.4 1.6

1.7 Active Customers, million

3 3.2

3.5 ETHICS AND GOVERNANCE
Business Ethics

Percent of team members trained on Business Conduct Guidelines

100

Board Diversity

Female Directors, percent

11 11

18 Racial and Ethnically Diverse Directors, percent

22 22

27 SOLUTIONS AND STEWARDSHIP
North American facility energy consumption, million kilowatt hours 430 401 371

North American CO2e emissions, million metric tons2 0.14 0.13 0.11

GHG Intensity (MTCO2eGHG/Revenue) 15.1 14.7 12.5

North American water use, million cubic meters

0.64 0.51

0.47 Renewable Energy Produced, million kilowatt hours

5.77 5.47

5.87 U.S. Distribution Center Network Recycling Rate

84.1 84.7

84.8 LEED-certified space, million square feet

3.6 4.2

5.5 Carton to Order Ratio

1.54 1.55

1.57 Environmentally Preferable Products, percent revenue

6.8 5.4

5.1 PEOPLE AND PURPOSE
Safety

Lost Time Incident Rate3 0.3 0.3 0.4

Total Recordable Incident Rate

1.1 1.3

1.4 Workforce Demographic

U.S. Workforce (total), percent women

—4 — 37 .4

U.S. Workforce (leaders), percent women

—

29.6 U.S. Workforce (total), percent racial and ethnically diverse

—

31.8 U.S. Workforce (leaders), percent racial and ethnically diverse

—

23.3 Community Engagement

Matching gifts contributions, $ million

2.7 2.2

2.2 Volunteer Corps, volunteer hours

—

9,000
1 For further information on data boundaries and assurance, please see About This Report . 2 CO2e emissions from operations that were under direct operation control as of 2014. 3 Per 100 employees; cases with one or more days away from work per 200,000 hours. 4 Did not track in a comprehensive manner until 2017.

A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
4 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT A Letter From Our
Chairman and CEO
I am proud to share with you Grainger’s sixth annual Corporate Social Responsibility (CSR) report, which details the progress on our key citizenship initiatives. This year, you will find new elements in our report that provide greater insights around our volunteer programs, workforce demographics, and materiality at Grainger.

This report looks back at 2017, which was a remarkable year for Grainger. It marked our 90th year of helping our customers keep their operations running and their people safe while creating a company where dedicated, talented people can thrive. We celebrated Grainger’s anniversary by embracing our long-standing culture of service and giving. Team members contributed about 9,000 volunteer hours through activities focused on the company’s core philanthropic pillars of disaster preparedness and response, education and workforce development.

Our service culture extends beyond the communities in which we live and work—it encompasses our customers too. This makes us unique and is one of the things I am most proud of as Grainger’s Chairman and CEO. Every day, our team members build relationships with customers and expand our reputation as a trusted partner. We understand what our customers do and deliver real solutions to their business problems with the highest level of ethics and integrity. That approach and commitment to serving customers in the most efficient way possible also has positive implications on the environment.

For example, when we ship orders in one box, as opposed to many, it significantly reduces the amount of boxes we need overall. As a result, Grainger is able to maintain a lower usage of corrugate and produces lower emissions through our transportation partners. We had a successful year providing v
alue to customers, which we highlight in more detail on page 6.

Also in celebration of our 90th anniversary, we underscored our commitment to advancing inclusion and diversity when I joined other CEOs by taking the CEO Action for Diversity & Inclusion Pledge. At Grainger, we welcome all people and have no tolerance for any type of inappropriate workplace behavior, including harassment, intimidation or abuse. We are committed to continue to have a respectful and inclusive culture where we can be our best, bring our brightest ideas forward and learn from each other. All team members participate in training to support this culture. We also all underscore our commitment each year by signing our business conduct guidelines, which codify the values upon which the company was built.

Finally, I’m honored by the recognition we received in 2017, including:
• Our first inclusion on the Dow Jones Sustainability Index •

A first-place category rank in Fortune’s “World’s Most Admired Companies” for the fifth consecutive year
•

Recognition by the U.S. Environmental Protection Agency (USEPA) as a SmartWay® partner
•

A perfect score on the 2018 Corporate Equality Index for the fourth consecutive year
•

Designation of a Best Place to Work for LGBTQ Equality by the Human Rights Campaign Foundation
•

High marks on the 2017 Disability Equality Index (DEI), and •

Designation as a “Best Place to Work for Disability Inclusion” by the American Association of People with Disabilities and the U.S. Business Leadership Network.

These achievements speak to the true character of Grainger team members and our shared commitment to create a culture that delivers real value to all of our stakeholders.

Thank you for your interest in Grainger. We are proud of our progress in 2017 and of our pledge to advance our CSR initiatives in 2018 and beyond.

DG Macpherson
Chairman and Chief Executive Officer

A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
5 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT A Letter From Our
Executive Sponsor
This letter marks my second year as executive sponsor of Grainger’s CSR working group.

We made great strides in 2017, including:
•

Tracking on target to reduce emissions intensity 33% by 2020 • Celebrating Grainger’s 90th anniversary with 2,000 of our team members serving their communities nationwide
•

Continuing to outpace the industry average by 60 percent in team member safety in our operations
•

Achieving 21 basis points reduction in simple returns in our private label products – signaling an increase in product quality and successful initiatives from our two global testing and engineering facilities.
•

Being recognized as a 2017 Best Places to Work for
Disability Inclusion on the Disability Equality Index (DEI), which measures how effective companies are with respect to disability inclusion
Our primary objective for 2017 was to examine how CSR delivers value to our stakeholders. With that in mind, perhaps the most important part of our journey in 2017 was engaging in a materiality assessment to define the economic, social and environmental topics that matter most to Grainger and its stakeholders. Through this assessment, we conducted desktop research, competitive intelligence, surveys, focus groups and one-on-one conversations with our customers, suppliers, team members and investors.

We also examined the link between sustainability and the challenges our customers face in keeping their operations running and their people safe. This link isn’t always apparent because of differences in customer size and complexity, industry type and our primary customer contact. For example, sustainability leaders discuss efficiency, procurement officers may look for cost reduction, engineers may ask about
product quality and plant managers may target productivity.

Regardless of the focus of a given customer, Grainger can provide the best solutions to the distinct challenges each customer faces, while educating them about how that solution can also improve their organization’s sustainability.

While this materiality assessment was a significant step forward, it is just one part of our 2017 effort. This year’s report also includes new metrics designed to provide
more meaningful program measurement for Grainger’s
stakeholders. Most notably, we are now including a
breakdown of gender and ethnic diversity of our United States (U.S.) workforce both overall and by leadership; providing a view of our revenue (by percent) derived from environmentally preferable products; and further details around our packaging

efficiency. I hope you agree that these points demonstrate a meaningful connection between our CSR efforts and the operations of our business.

To assist us in meeting the needs of our stakeholders,
deepening the meaningful measurement of our program and ensuring the correct strategic direction of Grainger’s CSR initiatives, we created a CSR Advisory Council. The Council is a group of senior-level team members who frequently interact with our stakeholders. They provide strategic awareness to the program and encourage developments in transparency
throughout the organization. The Council, along with myself and the CSR working group, will leverage the findings of our materiality assessment to set new targets and enhance our strategy in the coming months.

I hope you enjoy reading about our progress this year.

Matt Fortin
Vice President, President Merchandising
& Supplier Management

IN THIS SECTION
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
6 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

ABOUT GRAINGER
Our Business
More than 3.5 million customers rely on Grainger for products in categories such as safety, material handling and metalworking, along with services like inventory management and technical support. Grainger offers nearly 1.7 million quality in-stock products, a consultative sales approach, technical and product expertise, a premium digital experience and the ability to get complete orders to customers quickly to help keep their operations running and their people safe.

Our Reach
Our reach is focused on North America, Europe and Asia.

Our Brands
Grainger takes great pride in bringing our customers top quality products. Items that are designated with a Grainger Choice Badge (such as Dayton, Westward and Condor) are part of a broad selection of our private brand products that deliver high quality at a competitive price through Grainger Global Sourcing (GGS), our multi-national sourcing business.

ABOUT GRAINGER
Our Business
Our Reach
Our Brands
Our Strategy
About This Report

MATERIALITY AT GRAINGER
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our Value Chain
Grainger At A Glance
Grainger works to create value for customers, regardless of size, and ensure an effortless experience along the way. The result:
customers get what they need when they need it, which means less time spent looking for and ordering products, and more time spent on the task at hand. After 90 years of serving customers, Grainger has seen its fair share of c
hallenges right along with them, and the company has the experience and knowhow of a superior team to serve them best. When a customer comes to Grainger, they know we have them covered, regardless of the challenge.

3.5M+
Active Customers

1.7 million
Products Stocked
2017 Revenue
billion

10.4 Approximately
25k
Team Members
5,200
Key Product Suppliers
Approximately

Grainger
At A Glance

MATERIALITY
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our Value Chain

ABOUT GRAINGER
Our Business
Our Reach
Our Brands
Our Strategy
About This Report
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
7 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Our Strategy
In the large and fragmented Maintenance, Repair and Operations (MRO) industry, Grainger holds an advantaged position with its supply chain infrastructure, broad in-stock product offering and deep customer relationships. The global MRO market is

approximately $570 billion. The most attractive geographies for Grainger are those with high GDP per capita and a developed infrastructure. Consequently, Grainger’s strategy is concentrated on growth in North America, Europe and Asia. Each of these core markets has strong growth characteristics: the market is large and the competition is highly fragmented.

Over the past few years, Grainger has seen a shift in market dynamics across the MRO landscape. As digital solutions are becoming omnipresent, value-added relationships and services drive customer loyalty and analytics are required to prove value.

There are a number of ways to go to market in this environment.

Grainger competes with two models, the high-touch multichannel model and the endless assortment, or single channel, model (see graphic). Competing with these two models allows Grainger to leverage its scale and advantaged supply chain to meet the changing needs of its customers. For more detail on Grainger’s strategy visit our FactBook.

About This Report (Scope)
While Grainger’s Corporate Social Responsibility (CSR)
commitments apply throughout the world, this report is
primarily focused on the company’s major operations
in the U.S. and Canada. These operations currently
represent more than 80 percent of Grainger’s business
based on percentage of revenue, scope of operations and number of team members. Where applicable, the specific
geography is noted in the relevant footnotes to that data.

Since 2011, Grainger has sought third-party validation
of its greenhouse gas emissions, energy consumption,
waste generation and water consumption data from Bureau Veritas, an independent third party. In addition, Grainger’s Environmental Health and Safety team received validation since 2014 from Environ International Corporation for
its safety reporting process. Finally, Grainger receives ongoing verification of its environmentally preferable SKU designation from UL, Inc. (formerly Underwriter’s Labs).

PORTFOLIO PERFORMANCE AND STRATEGIC IMPERATIVES (As of December 31, 2017) High-Touch
Multichannel
U.S.

Large
Medium
Canada
International2
Single Channel Online
Total Company1
Revenue Create Unique Value

PORTFOLIO PERFORMANCE STRATEGIC IMPERATIVES
Execute high-value sales and
service solutions
Build advantaged digital capabilities
Complete the pricing actions,
grow midsize business
Execute complete business model reset
Drive profitable growth
Drive growth through product
assortment expansion and customer
acquisition
Deliver an
effortless
end-to-end
customer
experience
Improve
the cost
structure
1 Total company also includes Specialty Brands, eliminations and unallocated expenses. 2 International includes Cromwell, Fabory, Mexico, China and Latin America. $6.2B
$0.9B
$0.8B
$0.9B
$1.3B
$10.4B
Grainger’s high-touch, multichannel model includes its U.S., Canada and International businesses. The single channel online model includes Zoro in the United States and MonotaRO in Japan. Each business has a specific set of strategic imperatives focused on creating unique value for customers.

Grainger
At A Glance

MATERIALITY
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our Value Chain

MATERIALITY AT GRAINGER
Our Approach
Our 2018 CSR report details our progress across each of the four pillars of our program: Operating Responsibly, Valuing Our People, Sustaining Our Environment and Serving Our
Communities. We have completed a materiality assessment with critical stakeholders to identify which areas of our CSR program provide value to our customers, team members,
investors, suppliers and community partners. Through research, competitive intelligence, surveys, focus groups and one-on-one conversations with these stakeholders, we confirmed many of our current areas of focus and gained insight into new ones.

We are excited to share our findings below, and are already hard at work integrating these insights into our operations.

The Global Reporting Initiative’s (GRI) GRI Standards are the foundation for our annual reporting approach and our materiality assessment. The GRI is an independent international organization that has pioneered sustainability reporting since 1997. They help businesses and governments worldwide understand and communicate their effect on critical sustainability issues such as climate change, human rights, governance and social well-being.

Through this framework, we are able to describe the effect of our operations along the GRI Standard’s Core elements of economic, environmental, social and governance.

MATERIALITY ASSESSMENT PROCESS
Identification of Issues The first step in preparing a report with the GRI Standards in mind is identifying material topics.

Material topics are those issues reflecting an organization’s significant economic, environmental and social challenges or issues that have some substantive influence on the assessments and decisions of stakeholders.

We compiled a list of nearly 100 issues specific to industrial distribution from a number of external resources. We categorized environmental, social and governance issues into four themes:

Governance and Ethics, Solutions and Stewardship, Supply Chain and People and Purpose. These themes define the scope of our assessment and will guide future conversations with stakeholders.

STAKEHOLDER ENGAGEMENT

STAKEHOLDER
Customers

OUR RESPONSIBILITY

EXPECTATIONS MEANS OF DIALOGUE
Team
Members
Suppliers
Investors
Community
Partners
Help keep our customers’ operations
running and their people safe
Provide value by
Helping to reduce and control MRO costs and
increase safety and productivity • Offering great
service and support • Delivering the right
product when and where it is needed
Creating a great team member experience and
an inclusive workplace • Selecting and developing
people who anticipate and create a great
customer experience • Equipping and energizing
team members to excel amid change • Rewarding
and recognizing performance and results
• Sales and
Service teams
• Customer
satisfaction surveys
• Focus groups
• Online reviews
• One-on-one
discussions and
best-practice sharing
• Volunteer activities
• Educational
support for the next
generation of supply
chain leaders
• Supply chain
resilience activities
• Strategic
partnerships
• Intranet, web-based
internal newsletter
• Team member
engagement survey
• Internal reporting
desk (helpline desk)
• Education and
training
• Digital signage
• Volunteering
opportunities
• Townhalls
• Supplier outreach
• CDP Supply Chain
Questionnaire
• Partners in
Performance
• Supplier Code
of Ethics
• Annual shareholder
meeting
• Quarterly earnings call
• Proxy statement
and annual report
• Investor conferences
• Analyst day
• CSR Report
• One-on-one
discussions
• Governance
roadshow with lead
outside director
Deepening the collaborative relationship with
suppliers • Providing training and guidance
to ensure alignment with Grainger social and
environmental commitments
Operating a strong enterprise that is designed
to generate strong earnings and provide a
continuous return on investment. • Timely and
appropriate disclosure of corporate information
Problem-solving engagement • Offering team
member engagement with skills-based best
practices • Reporting transparently
Create a company where dedicated
and talented people can thrive
Offer opportunities for suppliers to
grow their businesses
Maintain a strong corporate
reputation, board governance
structure and reporting cadence to
increase shareholder value
Conduct initiatives aimed at resolving
social issues while providing valuable
resources to our communities

Grainger
At A Glance

MATERIALITY
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our Value Chain

ABOUT GRAINGER
Our Business
Our Reach
Our Brands
Our Strategy
About This Report
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
9 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Internal Assessment of Business Importance
Once we identified the themes relevant to Grainger, we
considered our customers’ needs, the scope and breadth
of an issue, probability of risk and magnitude of effect, brand reputation, regulatory concerns, and affect to the communities where we live and work.

Stakeholder Engagement After identifying the topics we considered most material to Grainger, we engaged with internal and external stakeholders including team members, customers and suppliers to confirm the subset of material topics and to determine the relative significance of each topic within the subset. Our objectives were to ensure representation from every part of our value chain, to accurately reflect stakeholder interests and priorities and to prioritize issues important to stakeholders. In addition, we had one-on-one discussions with analysts and investors and distributed surveys among stakeholder groups we couldn’t reach individually. We have already incorporated the feedback into our operations.

Materiality Matrix and Value Chain Map We used the
findings of our materiality assessment to map the prioritized topics in a matrix. Understanding the impact of our business throughout the life cycle of the solutions we offer is critical to developing a comprehensive approach to CSR. This
view offers insight into where issues matter most, while also helping to prioritize where we need to influence performance.

This view creates a shared understanding of how we are
improving supply chain efficiency, while providing greater value to our customers.

MATERIALITY MATRIX
Important Strategic Critical
Water Stewardship
Renewable Energy
Product Quality
Supplier Diversity
Disaster Preparedness and Response
Recycling and Waste
Talent Attraction
and Retention
Product Stewardship
Carbon Reduction
Workforce Diversity and Demographics
Sustainable Packaging Data Privacy and
Cybersecurity
Business Ethics
Supply Chain Resilience
Customer and
Team Member Safety
Economic
Performance
Energy Efficiency

SIGNIFICANCE TO GRAINGER

SIGNIFICANCE TO STAKEHOLDERS
GRAINGER CSR PILLARS: People and PurposeSolutions and StewardshipGovernance and Ethics Supply Chain This represents a combination of both internal and external perspectives, and takes into consideration factors such as program maturity and the growing requirements of stakeholders in a rapidly evolving environment. All programs are important, though some more mature than others, which influence the results shown here.

Grainger
At A Glance

MATERIALITY
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our Value Chain

GOVERNANCE & ETHICSSOLUTIONS & STEWARDSHIPSUPPLY CHAINPEOPLE & PURPOSE Raw
Materials
Grainger Choice
Suppliers
National Brand
Suppliers
High
Touch
Single
Channel Operations Transportation Customer

SALES & SERVICE DISTRIBUTION CONSUMPTIONSOURCING
Point of origin for our packaging,
supplier data, private label or
nationally branded products
Creating unique value and
ensuring an effortless
customer experience
Storing and moving
our products
to customers
Customers keeping
their operations running
and their people safe
Business Ethics
• Anti-corruption
• Fair dealing
• Harassment-free workplace
• Conflicts of interest
• Government contracting
• Public policy
Cybersecurity
Digital Security
Economic Performance
Carbon Reduction
Energy Efficiency
Product Stewardship
• Environmentally Preferable Product
• Product Lifecycle
Renewable Energy
Recycling and Waste
Sustainable Packaging
Water Stewardship
Supply Chain Resilience
• Supplier code of ethics
• Supply chain continuity
• Supplier monitoring
• Supplier performance
Product Quality
Disaster Preparedness

& Response
Supplier Diversity
Customer & Team Member
Safety
Workforce Diversity & Inclusion
• Pay Equity
• Workforce demographics
Talent Attraction and Retention
Our materiality process identifies the sustainability topics most relevant to our company, from the view of our internal and external stakeholders. In accordance with GRI Standard 103 - Explanation of the material topic and its Boundary, we’ve highlighted our most material topics and indicated where and how they affect our value chain.

Value chain maps display the primary activities and stakeholders associated with sourcing, selling and consuming a company’s services and products. This form of mapping allows us to see where our material topics affect our value chain. While many of these material topics are related to activities that occur within Grainger’s direct operations, some have implications throughout our entire value chain. The graphic above shows the boundary of each of our material topics.

A LOOK ACROSS OUR VALUE CHAIN

Grainger
At A Glance

MATERIALITY
Our Approach
Stakeholder Engagement
Materiality Matrix
A Look Across Our Value Chain

ABOUT GRAINGER
Our Business
Our Reach
Our Brands
Our Strategy
About This Report
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
11 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Continuing Engagement The interest in Grainger’s
Environmental, Social and Governance (ESG) profile
suggests a need for greater communications on sustainability objectives
and deeper engagement with stakeholders to
address sustainability challenges and opportunities.

Customer Data Privacy As technology evolves, the
customer experience may be enhanced through the use of
personal data. With that enhancement, new considerations arise for organizations like Grainger in processing that data and in operating in observance of applicable regulatory requirements and meeting customer expectations.

MRO Solutions Stewardship Differences in customer
size and complexity, industry type and our primary
customer contact can make the link between the evolution of sustainability and the challenges our customers face a moving target. Our customers believe we have an
opportunity to strengthen that link and create a distinct positive global sustainability effect with our products

and services. WHAT’S COMING IN OUR 2019 REPORT
As Grainger evolves, our CSR report should evolve, too.

That’s why we conducted a materiality assessment this year, and that’s why our four pillars will change in our 2019 report.

Look for the Forward section at the end of each pillar for a sneak preview as to how the report will adjust in 2019.

Forward
Operating
Responsibly
Valuing Our People
Sustaining Our
Environment
Serving Our
Communities
Governance
and Ethics
Solutions and
Stewardship
Supply Chain
People and
Purpose
Inclusive and Diverse Culture Our customers span
the globe and represent every demographic group, and we best serve them when our workforce reflects their diversity.

Diversity helps us better understand the different needs of our customers and deliver products and services that improve their daily lives. To give our stakeholders greater visibility to the diversity of our workforce, we learned there was value in releasing the demographic data for our workforce.

Thought Leadership As suppliers continue to innovate
environmentally preferable product, Grainger is uniquely positioned to use its expertise and leadership to engage with suppliers to help identify and scale policies and
solutions that help reduce greenhouse gas emissions and further the circular economy.

KEY FINDINGS FROM OUR MATERIALITY ASSESSMENT PROCESS

IN THIS SECTION
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
12 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

OUR APPROACH
At Grainger, trust, ethics and integrity are at the core of everything we do. This shapes our customer interactions, the stewardship of our supply chain and the governance of our business.

Operating Responsibly
Grainger is evolving with the marketplace,
while continuing to value the same sound business practices that helped shape us 90 years ago. Ethics and integrity define our culture, and we embrace the interests of our stakeholders across the value chain through a detailed set of business policies and procedures.

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption
Supplier Code of Ethics
Supplier Diversity
Supplier Scorecard
Ethical Sourcing
Maximizing Product
Quality in our Private
Label Brands

CORPORATE GOVERNANCE
Governance at Grainger
Corporate Social Responsibility Governance

STEWARDSHIP IN THE SUPPLY CHAIN
Commitment to Ethics
and Integrity
At Grainger, ethics and integrity guide how
we work and serve our communities. The
nature and scope of our operations require
significant confidence in our

team members, and they consistently
display a commitment to exemplary
conduct. The philosophies outlined in
our
Business Conduct Guidelines and
Supplier Code of Ethics are brought
to life in our collaborative and inclusive
culture that fosters a positive and
productive work environment.
>>Learn More About Grainger’s
Commitment to Ethics
Stewardship in the
Supply Chain
Distributors who deliver products
worldwide face complex challenges.

Products, materials and substances

must be safe for team members,
customers and the environment.

Data and content on products help
businesses stay compliant, and also
provide valuable knowledge and

insights to protect the environment,
and the health and safety of workers
and consumers.
>>Learn More About Grainger’s
Commitment to Ethical Standards
in its Supply Chain
Corporate
Governance
Governance at Grainger is built
around the long-term interests of
our shareholders and is supported
by the commitment of our Board of
Directors to monitor and provide
counsel to our leaders in their efforts
to create shareholder value.
>>Learn More About Grainger’s
Commitment to Proper Corporate
Governance
100% of Grainger team members
complete training for the Business
Conduct Guidelines each year
100% Completed

Operating
Responsibly

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption

CORPORATE GOVERNANCE
Governance at Grainger
Corporate Social Responsibility
Governance
Supplier Code
of Ethics
Supplier Diversity
Supplier Scorecard
Ethical Sourcing
Maximizing Product
Quality in our Private
Label Brands

COMMITMENT TO ETHICS AND INTEGRITY
Business Conduct Guidelines
Our Business Conduct Guidelines apply to all areas of
Grainger’s business, both domestic and international. These guidelines define a common understanding of ethical principles that guide the way Grainger works with customers, suppliers and colleagues. In addition, guidelines specific to customer segments (such as our healthcare and public sector segments) and geography may be required for operations.

Ethics Training
All Grainger team members are expected to demonstrate
their personal commitment to the company’s high operating standards by certifying to their compliance with the Business Conduct Guidelines annually. In addition, each new U.S. team member joining Grainger is required to complete training and certification within five days of hire. New international team members are required to complete training and certification within 35 days. Team members also complete training every three years to fully understand the expectation of legal and ethical behaviors defined by the Business Conduct Guidelines.

Anti-Bribery and Corruption
Grainger places the highest value on integrity in its business dealings and the ethical conduct of its directors, officers, team members, agents, shareholders, customers and suppliers.

As set forth in our Business Conduct Guidelines, Grainger is committed to business practices that are consistent with the highest ethical and legal standards. Grainger expects the same ethical and legal commitment from all third parties (business partners, brokers, consultants and agents) acting on Grainger’s behalf, and others with whom Grainger conducts business.

Grainger team members in certain roles are required
to complete biannual Anti-Corruption and Anti-Bribery training and certification to reinforce the requirements of this policy.

Encouraging Reporting Practices Grainger engages
a third party to maintain a helpline for anyone (inside or outside the company) to report ethical concerns or complaints regarding company practices. Those within North America can call a secure, 24-hour hotline at 888-873-3731. A global website is also available at www.tnwgrc.com/grainger. The company takes all reports seriously and does not tolerate retaliation against team members or others for asking questions or voicing legal or ethical concerns in good faith.

Business
Conduct
Guidelines
Federal
Compliance
Training
Human
Rights
Principles
Gift
Policy
Anti-Bribery &
Anti-Corruption
Supplier
Code of
Ethics
Conflict
Minerals
Policy
Environmental
Health & Safety
Policy

TRAINING & DEVELOPMENT ON GRAINGER GLOBAL POLICIES

Operating
Responsibly

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption

STEWARDSHIP IN THE SUPPLY CHAIN
Supplier Code of Ethics
Grainger works with thousands of suppliers to offer more than

1.7 million products used by customers to maintain, repair and operate their facilities. To help ensure the products we distribute are manufactured and delivered with high ethical standards, our Supplier Code of Ethics focuses on four main areas of ethical sourcing: human rights, labor, environment and anti-corruption. All Grainger suppliers and their sub-suppliers with dealings in the U.S., Canada and Mexico are expected to comply with the Supplier Code of Ethics. These suppliers must acknowledge our Code of Ethics and agree to the
expectations within as a condition of doing business with Grainger. Prior to onboarding, a new supplier must agree to abide by the Supplier Handbook, which includes applicable Grainger policies, transportation requirements and the Supplier Code of Ethics. All suppliers must agree to abide by these rules and confirm this by signing a Supplier Agreement Letter.

Supplier Diversity
Grainger has more than 20 years of successful experience offering small and diverse companies opportunities through two core programs.

Small and Diverse Suppliers Grainger
started its Supplier Diversity Program in 1999 to
assist in growing this sector of the economy while
helping customers get their jobs done with quality products made by small, women, minority, disabled, veteran and
LGBT-owned businesses. Grainger offers thousands of items from Certified Supplier Diversity businesses to more than a million of Grainger’s U.S. customers through its catalog and distribution channels.

Distributor Alliance Program Since 2006,
the Distributor Alliance (DA) Program has helped
customers support Diverse Business Enterprises
while consolidating maintenance, repair and operating purchases.

More than 50 DA members resell the full 1.7 million products offered by Grainger and provide services to customers with mandated procurement goals to support small businesses
and provide employment opportunities to women, minority and veteran-owned businesses. The DA member is one of the many points of contact for the customer, including regional business managers who mentor the diverse DA members and act as a liaison between Grainger, the end customer and the DA.

Improving Supplier Communications
In 2017 , our supplier contracts team implemented
a comprehensive indirect & direct source-to-pay
solutions database, which will provide us enhanced
technological and data capabilities for managing
our supplier base.

This database is a
win-win: it provides
our team members
powerful capabilities
around our supplier
reporting process
providing the most
updated information
available and retrieving
the supplier small and
diverse designation more easily. Also, it provides our
small and diverse suppliers with compliance-based
reminders, like when to update their small and
diverse certifications.

Operating
Responsibly

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption

STEWARDSHIP IN THE SUPPLY CHAIN
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
15 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Human Rights Labor
Environment Anti-Corruption
Ethical Sourcing
Human Rights At Grainger, the way we conduct business is as important as the products and services we provide. Grainger’s Human Rights Principles reflect our philosophy on how we will conduct business on a global basis, including the company’s commitment to providing a safe and fair workplace that upholds and respects international human rights standards. These principles are applicable to all Grainger team members, and are approved and monitored regularly by Grainger’s senior leadership.

Our Human Rights Principles create the foundation upon which we build a respectful, inclusive and ethically sound workplace. Harass -
ment, exclusion, discrimination, child or forced labor, and violation of any applicable laws or regulations are explicitly prohibited and excluded from Grainger’s workforce as part of these principles.

Conflict Minerals As a distributor of hundreds of thousands of branded and private label products manufactured by companies located around the world, we are invariably many levels removed from the beginning of our supply chain. Even so, Grainger is committed to acting in a socially and environmentally responsible manner and we take our responsibility within the supply chain seriously. Grainger supports the goal of the Dodd-Frank Act of preventing armed groups in the Democratic Republic of the Congo and adjoining countries from benefiting from the sourcing of certain minerals from that region.

Supplier Scorecard
Supplier Performance Management plays an integral role in Grainger’s strategic objectives by driving suppliers’ operational performance to deliver flawless orders to our customers. Each day, the team works with our supplier base of approximately 5,200 suppliers to improve operational performance, educate on Grainger’s shipping requirements, and drive compliance on replenishment purchase orders heading into our network and drop ship orders delivered directly to our customers.

We monitor each partner’s performance with a monthly balanced scorecard and provide feedback and offer assistance in
performance areas where improvement is needed. We seek to provide meaningful focus in pragmatic areas where efficiency

can be gained and effectiveness can be improved.

Partners in Performance Partners In Performance is an annual Grainger event sponsored by our Vice President and President, Merchandising and Supplier Management, designed to recognize and celebrate top performing suppliers, as well as to educate and inform the supplier community about Grainger’s

key initiatives and strategy. The 2017 event was a great success and built upon the foundation of value suppliers provide to Grainger and our customers.

GRAINGER’S ETHICAL SOURCING PLATFORM
PHOTO: Members of the Merchandising and Supplier Management team visit a Chicago landmark in Millennium Park.

Operating
Responsibly

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption

Our Return Rate performance, over the past four years, reflects the effectiveness of the testing and engineering teams’ focus on driving improvements in Total Returns of private label brand products.

Return Rate Performance We measure private label brand quality through the return rate of those products. Product return rate is calculated as a percent of total return dollars over cost of goods sold (COGS). In 2016, overall performance was 3.20 percent.

Our 2017 performance, at 2.99 percent, was favorable by 21 basis points over 2016, with COGS remaining flat from 2016 to 2017.

Simple Return Improvements
INITIATIVE >> In August, we began communicating
with a top five customer to better allocate and forecast orders as an effort to reduce their Traffic Safety Vest and I-Beam/ Column Protector simple returns. At the time, 2017 YTD
simple return dollars were up 80% compared to 2016.

EFFECT >> Since this communication, the sales team
has worked with this customer to create a listing of building types and a recommended Bill of Materials forecast to create a consistent, standard ordering schedule. This leads to less excess material being ordered, hence less returns requested and processed.

INITIATIVE >> In the summer of 2017 , our team
identified an error in a customer’s Electronic Data
Interchange (EDI). A discrepancy in the pack quantity
of knit gloves ordered resulted in over orders, a spike in return dollars and overall waste in their supply chain.

By working directly with their purchasing team, we
identified the discrepancy, corrected their ordering

system, and mitigated the downstream impact.

EFFECT >> Since this correction, return dollars in
this category are down 91%.

Percentage reduction in total
returns in GGS Products
21 basis
points

TOTAL RETURNS AS A PERCENT OF PRIVATE LABEL COGS

0.0 0.8

1.6 2.4

3.2 4.0

3.87 2014 2015 2016 2017

3.58 3.20 2.99

0.0 0.5

1.0 1.5

2.0 2.5

3.0 3.5
2016 2017
2017 Goal (3.02)

3.20 2.99

QUALITY RETURNS AS A PERCENT

OF PRIVATE LABEL COGS

Operating
Responsibly

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption

CORPORATE GOVERNANCE
Governance at Grainger
Our commitment to Corporate Social Responsibility begins with our Board of Directors. Our board, guided by the Operating Principles for the Board of Directors , is responsible for the overall stewardship, governance and performance of Grainger.

The board oversees the company’s business affairs and
integrity, works with management to determine the company’s mission and long-term strategy, establishes internal control over financial reporting and assesses company risks and strategies for risk mitigation.

In accordance with the Operating Principles for the Board of Directors, the board maintains three committees: Audit Committee, Compensation Committee and Board Affairs and Nominating Committee. The board has delegated authority to each committee through individual charters that establish the roles and responsibilities of the committees in accordance with the Operating Principles. Only independent directors serve on these committees.

Among the responsibilities of the Board Affairs and

Nominating Committee is reviewing and providing guidance to management on our Corporate Social Responsibility
policies and programs, including environmental sustainability and community engagement.

Board Qualifications, Attributes and Background
Grainger is committed to a diverse, experienced and vibrant Board. Our Board is currently comprised of 11 directors of varying experience and background, including two new
directors appointed in 2017. As a result of the Board’s ongoing refreshment efforts, we added directors with expertise in the technology and digital space, as well as in leading corporate social responsibility initiatives for a global business. Our two newest directors, Beatriz Perez and Lucas Watson, have
enhanced the diversity of our Board in addition to bringing their valuable perspectives and experiences.
“ The Board of Directors oversees and
supports Grainger’s commitment to
being a good corporate citizen. Part
of being a good corporate citizen is
advancing shareholder interests through
involvement with the communities the
Company serves and promoting a
sustainable environment.”

STU LEVENICK

LEAD DIRECTOR, GRAINGER
*For more information, see Grainger’s Corporate Governance fact sheet

ANNUAL REVIEW OF INDEPENDENT BOARD

INDEPENDENT LEAD DIRECTOR

CHARTERS FOR BOARD COMMITTEES

INDEPENDENT AUDIT, GOVERNANCE AND

NOMINATING, AND COMPENSATION COMMITTEE

ANNUAL BOARD ELECTIONS

INDEPENDENT DIRECTORS HOLD MEETINGS

WITHOUT MANAGEMENT PRESENT

REGULAR BOARD AND COMMITTEE EVALUATIONS

REGULAR DIRECTOR SELF-EVALUATIONS

CORPORATE GOVERNANCE GUIDELINES

APPROVED BY THE BOARD

BOARD ORIENTATION AND EDUCATION PROGRAM
HIGHLIGHTS OF CORPORATE GOVERNANCE PRACTICE S *

Operating
Responsibly

COMMITMENT TO ETHICS

AND INTEGRITY
Business Conduct Guidelines
Ethics Training
Anti-Bribery and Corruption

Structure and Strategy The CSR Working Group,
established in 2014, is led by our Vice President, President Merchandising and Supplier Management and is composed of leaders and subject matter experts in targeted functional areas.

These individuals lead programs that support initiatives within our four pillars (Operating Responsibly, Valuing our People, Sustaining our Environment and Serving our Communities) and are responsible for implementing programs to drive progress toward our CSR goals. In 2017, we added two new members to the working group bringing expertise in data privacy, disaster relief and response, and environmentally preferable product procurement.

WHAT’S COMING IN OUR 2019 REPORT
•

Operating Responsibly will become Governance and Ethics •

Subjects will include Business Conduct Guidelines, Team Member Compliance Training, Board Governance, Data
Privacy and Cybersecurity, Grievance Reporting
•
For Ethical Sourcing and Sustainable Packaging, see
Solutions and Stewardship
Forward
CSR

WORKING
GROUP

LEGAL &

COMPLIANCE SUSTAINABILITY
HUMAN

RESOURCES

ENVIRONMENT

HEALTH &
SAFETY

COMMUNITY

AFFAIRS

EXTERNAL

AFFAIRS

PRODUCT

MANAGEMENT
The Charter for the Board Affairs and Nominating Committee of our Board of Directors includes the responsibility to review and provide guidance to management about our policies and programs that relate to our CSR program including environmental sustainability and community engagement. It conducts this review on an annual basis, with information provided by the CSR Working Group.

The executive sponsor of the CSR Working Group provides guidance on the implementation of our CSR initiatives and

ensures that program development is designed with our business objectives in mind.

In 2017, we launched the CSR Advisory Council, a small group of senior-level team members who frequently interact with customers, investors, suppliers, or have direct line-of-sight to the revenue-generating parts of the business. The group’s primary objectives are to provide strategic awareness to the program and
to encourage developments in transparency throughout
the organization. Adding team members in the areas of risk management, data privacy, corporate governance, and large contract sales and marketing strategy, the Council will work to enhance our unique value for customers, while supporting Grainger as responsible stewards of our business. The Advisory Council represents a meaningful step forward in our CSR and corporate citizenship efforts in a way that is authentic to our organization.

IN THIS SECTION
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
19 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
Valuing Our People
Grainger’s purpose is to help professionals keep
their operations running and their people safe
while creating a company where dedicated, talented people can thrive. This commitment comes to life in a number of ways, including our commitment to Workplace Safety, and through our dedication to the people who make Grainger A Place to Thrive.

OUR APPROACH
At Grainger, we believe only the highest performing teams — teams that maximize the power of different opinions, perspectives and cultural insights — will succeed in providing stakeholder value in a rapidly changing market. Foundational to this is the safety, engagement, development, diversity and inclusiveness of our culture.

Workplace
Safety
Grainger is committed
to providing a safe work
environment and ensuring
team members are

properly trained in all
aspects of their work.
>>Learn More About
Workplace Safety
Team Member
Experience
A great customer experience
starts with a great team
member experience and
those experiences are
driven by engaged and
effective leaders. We provide
our team members with
training and development
designed to help them
succeed and grow their
careers. We focus our
efforts in three areas: talent
management, team member

well-being and creating
an inclusive and diverse
workplace.
>>Learn More About Our
Team Member Experience
Inclusion and
Diversity
At Grainger, we value
and respect the diversity
of our individual differences.

Our inclusiveness is about
leveraging our differences
to realize better business
results. It is about creating
an environment that

reflects the value we place
on the individual strengths
team members bring to
work each day.
>>Learn More About
Inclusion and Diversity
at Grainger
Operations team
members completed
safety training
5,285
“ If we put safety first,
we keep ourselves, our
colleagues and our loved
ones out of harm’s way.
¡Don’t wait until is too late!
Make every day count
for you and everyone
around you - BE SAFE”

LUIS JAVIER GIL

VILLARREAL
LÍDER ENVIRONMENTAL

HEALTH AND SAFETY ,
GRAINGER MÉXICO

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture

WORKPLACE SAFETY
Grainger’s Environmental, Health and Safety Program (EHS) is designed to integrate EHS initiatives into all aspects of business operations.

The program encompasses five key components:
•

Leadership provided through partnership with Operations and EHS Teams;
•

Policy Guidelines outlining company and regulatory requirements; •

Education and Awareness which is disseminated throughout Grainger’s Operations;
•

Goals and Measurements defined as Key Performance
Indicators; and
•

Monitoring and Recognition to evaluate progress throughout the year and recognize achievements.

EHS is also responsible for interpreting and acting upon applicable federal, state and local regulations and/or proposed legislation relevant to the Occupational Health & Safety Administration (OSHA), Environmental Protection Agency (EPA), and the Department of Transportation (DOT). Our safety program infrastructure is designed to have tangible links from Grainger headquarters to field operations with local expertise and resources allocated to support implementation regionally.

Safety Performance
The safety of those in our facilities is a top priority. We continue to make strides in safety across our business, trending 60 percent above the Bureau of Labor and Statistics (BLS) U.S. Wholesale Industry Average for Lost Time Incident Rate (LTIR). Repetitive motion sprains and strains are the greatest source of injury in our facilities in the U.S. *Projected rate as BLS has not yet published official rates

0.0 0.5

1.0 1.5

2.0 2.5

3.0 3.5
Grainger Lost Time
Incident Rate (LTIR)
Performance
U.S. Wholesale Industry
Average LTIR
Grainger Total
Recordable Incident
Rate (TRIR) Performance
U.S. Wholesale
Industry Average TRIR

1.5 1.4 1.3 1.2 1.1

1.3 1.4

3.2 3.2 3.1

2.9 3.1

2.8 2.8*

1.1 1.1 1.0 1.1 1.1 1.0*1.0

0.4 0.2 0.3 0.3 0.3 0.3 0.4
2011 2012 2013 2014 2015 2016 2017
In 2017 , Jacksonville
DC worked without
a lost time accident
(LTA) with more than
2,000,000 hours.

HIGHLIGHT
U.S. TOTAL RECORDABLE CASE RATE
Sprains / Strains
Slips, Trips and Falls
Cuts / Lacerations
Struck by or Caught
in Between ObjectTotal Recordable
Injuries by Accident
Category 2017
(%)
47 15
9 13
8 6
Other
Foreign Body /
Allergic Reaction /
Bruises
better performance
on LTIR than industry
average
60%
Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
21 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT All operational team members
continue to demonstrate their personal
commitment to safety by completing
the required certifications. In addition,
team members re-certify at least
every three years and, in some
cases, annually. Team members also
complete training to fully understand
the expectation of behaviors defined
by the Global Environmental Health
and Safety Policy .

Safety Assessments In 2017, to further differentiate Grainger as a leader for safety solutions, we completed comprehensive self-assessments in 36 branches. The assessments covered topics such as basic hazards, material handling, emergency

preparedness, waste disposal, risk and risk management. Results of these assessments are communicated to branches leaders and Environmental Health and Safety executives, with follow-up, accountability and closure of actions are delineated in a corrective action plan for each branch.

Safety Culture
Our EHS program is driven by engaged team members who are committed to maintaining a strong culture of safety. Each Grainger U.S. distribution center has a dedicated Area EHS Manager who helps ensure operations are safe and effective. The company’s Global EHS Policy requires team members to understand and comply with EHS regulations related to facility safety, personal protection and emergency response.

To support this culture, we have key initiatives that provide team members with opportunities to be active participants in safety processes. These include:
• Conducting safety audits and inspections and
•

Leading safety training and safety reminder discussions during pre-shift huddle meetings.

We continue to align and standardize safety programs across our operations through our web-based EHS Management System, which helps turn complex, global compliance requirements into multilingual, actionable processes, and identifies safety risks and trends across geographies. The Digitized Injury and Illness Reporting Module of the system is active in the company’s U.S. operations and the company completed implementation in the UK in 2017.

Near Miss Events A Near Miss Event is an unplanned event that did not result in an injury but had the potential to do so.

Collecting near-miss reports helps us create a culture that identifies and controls hazards, which will reduce risks and the potential for harm to Grainger team members before an injury occurs.

Safety Training One of our top priorities is to ensure our team members get home safely at the end of each work day.

That means our safety practices and principles must be fully embedded in our corporate culture. That is why we ask all team members involved in shipping our products to complete extensive training so they can confidently perform their duties.

We provide very clear parameters to our safety leaders to ensure every team member has the knowledge they need. During
2017, our managers conducted nearly 17,000 behavior-based observations and our team members spent nearly 20,000
hours training on safety policies and procedures.

Grainger managers
conducted
nearly 17k
behavior-based
observations
in 2017
Grainger team members spent nearly 20,000
hours training on safety policies and procedures
20k hours

2.5 Average training
hours per operations
team member in 2017

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
22 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Aligned with OSHA voluntary protection programs, which
promote effective worksite safety and health through cooperative relationships, our campaign satisfies a critical part of any safety culture: encouraging team members to own their safety and the safety of their fellow team members.

Contractor Safety Program From time to time, contractors enter our facilities to assist in the maintenance of our facilities or systems. Although these contractors are not Grainger team members, they are expected to work in the same safe manner.

Contractors provide important services to the company but may be unfamiliar with their surroundings. Through this contractor safety program, which includes training and audits, we can create a safe environment for all individuals on-site. Since the implementation of this program, we have on-boarded 147 contractors onto our EHS Management System.

Systems and Partnerships
Partnerships Grainger remains as
the National Founding Sponsor of the
National Safety Council’s Journey to
Safety Excellence.
® This initiative mainly
targets small-and medium-sized organi-
zations, offering measurement tools and
easy-to-access resources to help keep
team members safe and healthy.

Acklands-Grainger is the National Founding Sponsor of Canada’s Safest Employers Award, a nationwide competition to raise awareness about the importance of safety in the workplace.

Safety Committees Our team members assist in safety
stewardship and injury prevention through their leadership and participation in our safety committees. These committees were created to align safety-related solutions across DC operations.

Safety committee meetings are held monthly, foster observational and data-driven decision-making, and ensure common resolution and consistent execution within our DC operations. Leadership of these committees rotates, providing development and recognition opportunities for improvement. “On-the-Floor” meetings enable team members to walk through a facility and identify opportunities to create a safer working environment. “Off-the-Floor” meetings encourage team members to share safety trends and the chance to review safety videos. These committees create greater engagement among our team members and foster a more team member-led safety culture.

In 2017, 178 team members participated in safety committees across 10 DCs and 3 master branches, representing approximately 5% of the operational team member population.

Watch my Back, Please! Studies by the National Safety Council suggest that engaged business units have significantly fewer safety incidents than units with lower team member engagement. With this in mind, we rolled the campaign out in our U.S. DCs in Q1 2018. The program, designed to increase team member awareness and engagement around safety initiatives and ergonomic procedures, provides a fun and approachable framework for mutual accountability. Team leaders facilitate conversation in stand-up meetings with team member suggestions for watching each other’s backs for safety throughout the workday. +80%
onboarded into our
contractor safety program
178
Team Members Who
Participated in
Safety Committees

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
23 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT LATAM Leadership Recognition
Rudy Juarez has been honored as a 2017 Business
Leader of Color by Chicago United, an organization
that helps advance multiracial leadership in corporate
governance, executive level management and business
diversity in Chicago. Rudy, along with 49 other
honorees, was recognized for the effect made at
Grainger and the broader business community.

Rudy has been Vice President of Latin America &
Export since October 2016 and is part of the Grainger
International Leadership Team. He has helped prioritize profitable growth and high standards of ethics and
integrity in key geographies and has direct responsibility for Mexico, Caribe and Export. Rudy’s leadership has
helped us increase the effectiveness of sales teams,
focus on the right metrics and invest in what customers’ value the most in these markets with high-growth potential.

A PLACE TO THRIVE
We work hard to cultivate a great work environment for our team members because they are critical to the success of our business. We know that a great customer experience starts with a great team member experience and those experiences are driven by engaged and effective leaders. We provide our team members with training and development designed to help them succeed and grow their careers. We focus our efforts in three areas: talent management, team member
well-being and creating an inclusive and diverse workplace.

Team Member Experience
Grainger is continuously improving our team member
experience. We support each team member through talent
management and team member learning programs, and
we encourage career and leadership development at each
stage of a team member’s tenure.

Talent Management We offer a comprehensive talent
program that begins at orientation and continues throughout a team member’s career. This is aligned to our business strategy; our company succeeds when we equip and
energize team members to excel. Our talent program is
comprised of career management, team member learning,
performance management, and leadership development
offerings to help grow and mobilize our team members to grow and succeed.

Streamlining talent management activities within Grainger has been a focus since launching the Global Talent Excellence Suite (GTES) in 2013. Providing team members and leaders with one, easy-to-use tool for all talent related activities drives productivity and creates efficiencies across the business.

In 2017, two additional modules were added to the GTES:
annual compensation planning and learning management.

Annual compensation planning is now managed through the tool, creating an enhanced pay-for-performance process and ensuring top talent is recognized and rewarded.

TALENT STRATEGY & PLANNING

SOURCING & RECRUITING

LEARNING & DEVELOPMENT

PERFORMANCE MANAGEMENT

LEADERSHIP DEVELOPMENT

GRAINGER TEAM MEMBER EXPERIENCE
“ It’s an honor to receive
this recognition and it’s
great that our company
continues to be highly
respected for having an
inclusive culture where
dedicated, talented
people can thrive.”

RUDY JUAREZ

VICE PRESIDENT,

LATIN AMERICA & EXPORT

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
24 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Team Member Learning Our team members continue to
learn and develop as the needs of our business change. Whether a team member requires role-specific training, foundational skills training or leadership training, Grainger offers more than 1,300 courses through our Learning Management System and more than 800 courses through our mobile learning platform for sales, formal mentoring opportunities and on-the-job development.

Through these resources, team members can grow in their current roles while developing skills for the future. In total, Grainger team members completed more than 279,520 non-operational training hours in 2017. The average number of training hours per team member was 11.3.

In 2017, Grainger transitioned to a new Learning Management System (LMS) within GTES. This enhancement links learning to other talent excellence systems to drive an integrated and simplified team member experience. The LMS module was
implemented in Canada in the first half of 2017, with the remainder of North American and parts of Asia to go live in early 2018.

This new LMS integration will provide our team members with an enhanced experience and capabilities, including a refreshed look and feel, convenient access through a cloud-based system and broader opportunities to grow and develop through just-in-time learning solutions. The new GTES module will increase collaborative learning across the business, expand the total learning repository and enable all countries to leverage and localize content.

Leadership Development We create a sustainable workforce through the development of strong leaders from all parts of the business. Our leadership development process succeeds by:
• Creating a strong bench of well-prepared leaders and •

Enhancing organizational effectiveness and team member
engagement through strong leadership
Grainger’s commitment to the growth of its team members is exhibited through its leadership development programs. These multi-week, cross-functional sessions are targeted toward key team members world-wide. Offerings include Grainger’s Global Emerging Leader Program, First Time Manager Program and Global
Experienced Manager, a program added in 2014 for frontline and mid-level managers. Each program is designed to provide guidance to leaders wherever they are on their leadership journey.

Grainger continues to be committed to leadership effectiveness as part of its people strategy. This includes our people leader effectiveness goal, the upward feedback survey and accelerating participation in leadership programs. Of the 2,276 leaders eligible to participate in 2017, 87 percent received a report, based on the
requisite number of respondents to ensure confidentiality.

Increasing the investment in leader effectiveness enables strong people leaders at every level of the company, which in turn has a significant effect on Team Member Experience and, ultimately, customer experience and business results.
0 325 650 975 1300
1,029 team members
1,300 team members
2016
2017

TEAM MEMBER PARTICIPATION IN LEADERSHIP

TRAINING PROGRAMS
1,300+ 800+
course offerings
through sales mobile
learning platform
classes offered
through learning
management system
total number of non-operational training hours
completed by team members in 2017
279,520+

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
25 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT of team members participate
in performance reviews
100%
Women in Leadership
Grainger recognizes the value of diverse talent
and provides opportunities for individuals to
attend external programs to continue their
growth and development. High potential
women had the opportunity to take part in a
multi-dimensional Leading Women Executives
Program, as well as a number of programs
through the Executive Leadership Council.

Leading Women Executives is a leadership
program for high-potential female professionals
that focuses on three critical elements for
success: organizational support, leadership
skill building, and ongoing networking. This
year, Grainger sent 3 team members to this
program. Erin Ptacek, Director of Internal
Communications, shared her experience.

Performance Management Performance Management
is a continuous process that helps team members focus
on the right priorities. Team members receive regular
feedback and coaching to improve their performance and
are provided with opportunities to help them grow and
develop. Each team member develops three to five clear, meaningful goals that are aligned to company strategy
and receive biannual performance assessments based on
progress against goals and demonstrated behaviors.

DEVELOPMENT PLANNING AND CAREER

MANAGEMENT
Team members are encouraged to have a robust Individual Development Plan (IDP). An IDP is a documented plan
shared between a team member and their leader that outlines a team member’s plan to grow and develop in their current role and prepare for future roles at Grainger. Additionally, we offer career planning tools for team members to explore new roles in different parts of Grainger’s business. A role library provides real life stories from team members who work in different functions, and self-assessments allow team members to discern opportunities that might be a strong fit.

ERIN PTACEK

DIRECTOR, INTERNAL

COMMUNICATIONS
“Participating in the
Leading Women
Executives program
provided me a meaningful
opportunity to advance
and extend my leadership
development both
internally and externally.

Having the ability to
network with and learn
from other women professionals while
also gaining valuable insight from the
program curriculum and speakers
created a very enriching experience.”

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

We regularly seek team member feedback and conduct external compensation and benefits-related benchmarking to remain competitive in each of the markets in which we operate.

Grainger Creates a Great Team Member Experience
In 2017, we traveled to 20 of our largest facilities to conduct the Total Rewards Roadshow, an expansion of our health and benefits fair, with representatives from many of our core programs. The Total Rewards team and our program partners were on-site to engage in personalized dialogue with team members. Our approach is innovative and builds awareness and accountability for our team members around the services available to them as a member of Grainger’s team. Our team’s purpose during the roadshow was to:
• Reinforce the value of Grainger’s Total Rewards offerings •

Increase awareness, engagement, utilization and program and plan participation
•

Create a closer, personal connection between team
members and the Total Rewards program; and
•

Help team members understand the tools and resources
available.

VIDEO: Grainger’s
Helpful Tips for
Lifting Heavy
Equipment Properly
Team Member
Well-Being
Initiatives
10 Total Rewards
At Grainger, our long-term success is the direct result of team member collaboration and individual contribution. In return for everything our team members do, we deliver an above-market Total Rewards programs that offers flexibility and choice, and the opportunity for our team members to actively participate in the benefits that are most important to them and their families.

Our Total Rewards programs are designed to meet the
diverse needs of our team members and support their
health and well-being, financial future and work-life
balance. We encourage our team members to take charge of their health and create their own wellness journey. Team members are given access to health plan resources which include disease management, tobacco cessation, maternity support, stress

management and weight loss programs with access to online support communities, 24-hour virtual health services and many other resources so they can get timely health-related advice.

PHOTO: We encourage team members to bring their entire selves to work. In 2017, as part of our well-being initiatives, we expanded our workplace dress policy to include “dress for your day”, reflecting a more casual atmosphere.

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
27 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT The Asian Pacific Islander BRG
The mission of the Asian Pacific Islander Business
Resource Group (API BRG) is twofold:
>> To unlock the full potential of API team member
talent, drive cultural awareness within Grainger
and drive business results.
>> Market Grainger to the API community (internal and
external) as a great place to work, where API team
members thrive and add significant value to the
business and the community.

In 2017 , the API BRG hosted events including:

Cross Connections Development Event for 600+ team
members; Junior Achievement Day at Grainger with
mock interviews, job shadowing and leadership
panels for 30 students; Asian Heritage Month events
in partnership with other area company BRGs; Drove
community presence through involvement in our
Dragon Boat Program in four cities across the U.S.;
Contributed to customer value generation through
translation services.

An Inclusive and
Diverse Culture
At Grainger, focusing on our common
purpose and leveraging our
differences makes us extraordinary.

We are deeply committed to a culture
of inclusion that is meaningful to
our team members, allowing us to
attract, develop, engage and retain
the best talent available. We serve
the business needs of an increasingly
global and diverse customer base
and we strive to ensure our team reflects this rapidly changing world. Inclusion and diversity is integral to Grainger’s business success, and the company is committed to fostering an
inclusive environment where all team members feel safe, valued and encouraged to voice their opinions regardless of age, gender, race, ethnicity, sexual orientation, veteran status, disabilities or backgrounds.

Training The company reinforces its commitment to
inclusion and diversity by offering instructor-led and e-learning courses such as Inclusion and Diversity: A Business
Imperative and The Inclusive Team Member, which help team members understand the business case for diversity, explore the enabling mindset and behaviors that facilitate inclusion in the workplace, respond effectively to differences and increase the level of inclusion in their work area. Another offering, The Inclusive Leader, equips people leaders with inclusive behaviors, skills and best practices around attracting, developing, engaging and retaining the best and brightest people at Grainger
.

Grainger’s perfect
score on The
Corporate Equality
Index for the
past three years
PHOTO: It’s at this long-running Chicago community event where the Grainger dragons were well represented in the 2017 Chicago Dragon Boat Race for Literacy.

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
The Latino BRG
The Latino BRG is leading the pack in terms of chapter development and field involvement with 18 total chapters, seven new chapters created in 2017 . Additionally, the Latino BRG was involved in a variety of community efforts including: CIS-Communities of Schools Gala in Houston; Local college fair benefiting high school students and families in New Y ork city; Latino Student Fund Gala in Washington DC. They also held an event in Mira Loma, CA for Hispanic Heritage Month for development of top talent Latinos/Latinas across the company.

OUR BRGs
•

Administrative Business
Partner
•

African American
•

Asian-Pacific Islander
•

Disability
•

Equality Alliance
•

Generational
•

Latino
•

Veterans and Military
Supporters
•

Women’s
BRG volunteering included:
22 volunteer
projects
1,100
volunteer
hours
200+
volunteers
14 nonprofit organizations
supported
Donations from Grainger Business
Resource Groups
$65,000+
Business Resource Groups (BRGs) Grainger has eight
BRGs that foster team member engagement and help team
members share information, ideas, experiences and resources.

These groups provide peer support, career development and mentoring opportunities, in addition to raising awareness through a variety of discussion groups and activities that are open to all.

Approximately 3,500 U.S. team members participate in the BRGs thanks in large part to our BRG Roadshow, designed to attract new members. Every BRG has an executive sponsor who works with these team member-led groups to help us create the right workplace by fostering inclusion and create the right work -
force by attracting, developing and retaining top diverse talent.

They have helped support the business strategy by creating unique value for different customers and reducing cost, and they have contributed to our communities as responsible stewards.

In 2017, the BRGs contributed more than $65,000 in donations and volunteered more than 1,100 hours with 14 different organizations including One Million Degrees, Uhlich Children’s Advantage Network, i.c. stars and Junior Achievement. Many of these volunteer initiatives include mentoring opportunities.

Internally, Grainger also has a BRG Mentoring Program, which includes more than 160 team members, serving as role models and inspiration for students. >>Learn more about the BRG Community Fund
28 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

A PLACE TO THRIVE
Team Member Experience
Total Rewards
An Inclusive and Diverse Culture
US BLN Going for the Gold
Since 2014, Grainger has partnered with the U.S. Business Leadership Network (USLBN) as part of their Going for the Gold Initiative.

Going for Gold connects participating corporate partners with USBLN subject matter experts and unites them around disability inclusion through leading practices and tools. Since the partnership began, we’ve hired 277 team members with disabilities, an increase of 857 percent. Earning a score of 80 percent, we have been recognized as a 2017 Best Places to Work for Disability Inclusion on the Disability Equality Index, which measures how effective companies are with respect to disability inclusion. We are proud of this recognition and look forward to further strengthening Grainger as a Great Place to Work for everyone.

A Commitment to Advance Diversity In 2017, a
group of more than 150 CEOs, including Grainger’s DG
Macpherson, signed the CEO Action for Diversity & Inclusion , the largest CEO-driven business commitment to advance
diversity and inclusion in the workplace. By signing on to this commitment, CEOs are pledging to take action to cultivate a workplace where diverse perspectives and experiences are welcomed and respected.

With that commitment in mind, our 2017 report marks an
important milestone in our CSR story. This year’s report provides additional insight into the diversity and inclusiveness of our organization by delivering insights on our diversity performance. We believe that the development of an inclusive workforce is essential to our success. To better serve those stakeholders, we are working to improve our performance every year.

Global Workforce In 2017, Grainger employed approximately 25,000 people worldwide: 77 percent of our team members are based in North America, 12 percent in Europe, 6 percent in Asia Pacific and 4 percent in Central and South America.

U.S. Workforce Demographics In 2017, Grainger’s
workforce was 37.4 percent women overall and 29.6 percent women in leadership positions. Also, Grainger’s workforce was 31.8 percent racial and ethnically diverse team members overall and 23.3 percent racial and ethnically diverse leaders.

According to the 2015 Job Patterns for Minorities and Women in Private Industry EEO-1 National Aggregate Report, our current performance outpaces the NAICS Industry Composite for both digital and industrial distributors.
* Source: 2015 Job Patterns for Minorities and Women in Private Industry EEO-1 National Aggregate Report ** Total numbers may not add precisely due to rounding. 0 10
20 30
40 U.S. WORKFORCE (Total)
Gender Diversity (%)

37.4 20.8
0 10
20 30
U.S. WORKFORCE (Leadership)

29.6 17.7
*Racial and Ethnic Diversity
Distribution at Grainger
African American 8.5%
HIspanic 6.7%
Asian or Pacific Islander 6.7%
Two or More Races 0.9%
American Indian / Alaskan 0.6%
Senior Management Total 23.3%
**Racial and Ethnic Diversity
Distribution at Grainger
Hispanic 14.1%
African American 11.4%
Asian or Pacific Islander 4.3%
Two or More Races 1.5%
American Indian / Alaskan 0.4%
Total 31.8%
Racial and Ethnic Diversity (%)
0 5
10 15
20 25
U.S. WORKFORCE (Leadership)

23.3**

12.7 0
8 16
24 32

31.8**

21.1 U.S. WORKFORCE (Total)
Grainger
NAICS Industry
Composite*
U.S. WORKFORCE DEMOGRAPHICS
29 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

Valuing
Our People

WORKPLACE SAFETY
Safety Performance
Safety Culture
Systems and Partnerships

Valuing Our People becomes part of People and Purpose
•

Subjects include Health and Safety, Performance
Management, Leadership Development, Inclusion and
Diversity
•

Metrics include EHS Safety, Talent Attraction and Retention, Team Member Diversity
Forward
• National Association of
Women MBAs
•

National Sales Network
•

National Black MBA
•

Hispanic Alliance for
Career Enhancement
•

Indo American Career
Services
•

Reaching Out MBA
•

HirePurpose
•

US Business Leadership
Network
• Skills for Chicagoland’s
Future
•

Out and Equal
•

Recruit Military
•

National Association
of Asian American
Professionals
•

Ascend
•

Blacks in Tech
University Partnerships We partner with several Historically Black Colleges and Universities to help strengthen the diversity of our talent pipeline. These include Howard University, Albany State University and Florida A&M University. Lastly, we strengthen our early-career talent pipeline through our internship program and direct placements. Our emphasis with these and other strategic organizations is on building deeper and more meaningful partnerships that can continually improve our ability to develop, attract and retain a diverse workforce.

Strategic Alliance Partnerships We actively recruit
from, and maintain relationships with several strategic alliance partnerships. Strategic alliances are critical to Grainger’s success. In 2017, Grainger built new and built on previously existing strategic alliances with 10 organizations to build our reputation as a top employer for diverse talent. Since 2014, Grainger has hired more than 270 team members through

strategic alliance partnerships. These organizations include:
4 Fortune Most Admired Companies:
#1 in Diversified Wholesalers
4 HRC Corporate Equality Index 4th
consecutive year
4 North America Dow Jones
Sustainability Index
4 #17 on HR Executive Magazine’s
Most Admired in HR List
4 2017 Executive Leadership Council
Ambassador Company
4 Newsweek.com Top Green Companies
in the U.S. 2017
4 FTSE4Good Member Company
4 Fortune’s 2018 World’s Most Admired
Companies 5th consecutive year
4 2017 Disability Equality Index
4 Best Places to Work for Disability
Inclusion
4 2018 Best Company to Work for Millennials
by The Women’s Choice Award
4 Working Mother Mexico Best
Companies 2017
4 Mexican Center for Philanthropy (Cemefi)
and the Alliance for Corporate Social
Responsibility’s (AliaRSE) Distinctive
ESR® 2018 award, 4th consecutive year
4 Black Enterprise’s 2018 List of Top
Executives in Corporate Diversity
2017 Awards and Recognition

IN THIS SECTION
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
31 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

OUR OPERATIONS
Greenhouse Gas Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach their
Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

OUR SUPPLY CHAIN

Supply Chain Stewardship
Transportation

OUR APPROACH
We work to continuously improve our environmental performance across our value chain from our suppliers through our operations and to our customers. We encourage stewardship in our operations and seek to share the lessons we have learned with others. We partner with several third party sustainability organizations, such as the CDP (formally known as the Carbon Disclosure Project), the GreenBiz Executive Network, the U.S. Environmental Protection Agency Smartway program, UL Inc. (formerly Underwriter’s Laboratories, Inc.) and the U.S. Green Building Council to help us align our environmental investments with our stakeholders’ expectations.

We help our customers with their sustainability journey by offering the right products and lending our expertise around services and solutions that are more sustainable. In addition to helping our customers, we are identifying new opportunities for Grainger to integrate and sustain sound environmental practices in our own operations and the operations of our customers.

Our Operations
We primarily focus our efforts where we
can have the most influence. Grainger’s
distribution centers (DCs) account for
roughly 34 percent of our operational
square footage and will proportionally
increase as we expand our service
offering. Inherent to this footprint is an
opportunity for energy management. We
closely monitor our energy consumption
and improve our green energy mix by
researching sustainable solutions to
increase efficiency and utilize renewable
energy. When possible, we invest in onsite
renewable energy, purchase renewable
energy credits and green tariffs.
>>Learn More About Our Operations
Our Products
Grainger provides customers with
the products they need to keep their
businesses running over the long
term. As part of this, we work to
understand how these products affect
the environment. Our customers have
increasingly requested environmentally
preferable products and we stock them
to meet this need. We currently offer
more than 72,000 environmentally
preferable items that help customers
maintain sustainable facilities through
efficient energy management, water
conservation, waste reduction and
air-quality improvement.
>>Learn More About Our Products
Our Supply Chain
We view our suppliers and vendors as
our allies in improving our emissions
and materials management. We rely
on a network of third-party carriers
to meet our transportation needs.

We work with our largest suppliers to
innovate and improve our distribution
packaging. We collect data and share
best practices in sustainability across
our value chain by engaging our
suppliers through the CDP Supply
Chain Program.
>>Learn More About Our Supply Chain
Sustaining Our Environment
At Grainger, we are committed to conducting
business in an environmentally responsible manner
while working to reduce energy use and minimize waste in our operations. To do so most effectively, we focus on the environmental challenges within the material parts of our business: our operations, our products and our supply chain.

Valuing
Our People
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

OUR OPERATIONS
Climate Change Disclosure
We recognize that climate change is a
significant global issue. The company is
taking steps to reduce its energy use and
greenhouse gas (GHG) emissions. Grainger
has participated in the CDP since 2009,
providing detail on business risks and

opportunities related to climate change. In 2012, we became the first industrial distributor to publicly disclose its carbon footprint.

Dow Jones Sustainability Index Grainger, recognized for its corporate sustainability leadership, debuted in 2017 on the North American Dow Jones Sustainability Index. The Dow Jones Sustainability Indices are a family of global benchmarks for corporate sustainability, tracking companies based on investment firm RobecoSAM’s analysis of financially relevant environmental social and governance factors. Currently, Grainger is the only industrial distributor in the North American Index.

ENERGY EFFICIENCY
Greenhouse Gas Emissions (GHG)
We are committed to the global effort to reduce GHG. We focus our reduction strategy around two specific areas: reducing GHG intensity and waste in our own operations and supporting emissions reduction strategies in our supply chain through collaboration and increased transparency. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy.

Scope 1 and 2 We chose 2011 as our baseline year, in which emissions totaled 142,306 metric tons. Since 2011, we have reduced Scope 1 and Scope 2 emissions by nearly 22 percent.

In 2017, our Scope 1 and 2 GHG emissions were 110,654 metric tons. To help offset these emissions we generate renewable, zero emissions energy and participate in green energy procurement.

Intensity Target In 2013, Grainger became the first industrial distributor to set a GHG reduction goal. Our target is to reduce our North American Scope 1 and Scope 2 GHG emissions
intensity per unit revenue 33 percent by 2020. The goal was *For 2017 data, Grainger updated the Scope 2 eGRID Emissions Factors for the United States from eGRID2014 (Y ear 2014 Data) to eGRID2016 (Y ear 2016 Data). Based on the previous year’s usage this resulted in a reduction of approximately 5,596 MT of CO2e, or 4% of Grainger’s GHG emissions in 2016. (5,596 MT CO2e/128,572 MT CO2e)*100 = 4 (Grainger’s 2016 scope 1 and scope 2 emissions equals 128,572) Grainger’s intensity metric includes the GHG emissions from operations that were under direct operational control as of 2014, the year our goal was set. This includes W.W. Grainger, Inc. in the U.S., Grainger Mexico and Acklands- Grainger in Canada. Starting in 2015, Grainger improved its calculations to include all North American business within operational control after 2014. We verified only our U.S. data through a third party in 2011 . Therefore our baseline year calculations include estimates for Acklands-Grainger and Grainger Mexico. We calculated these estimates using the average of 2012 and 2013.

Grainger
maintained
the A- CDP
score for
three years
in a row
SCOPE 1 AND SCOPE 2 EMISSIONS WITH INTENSITY
designed to be achievable, yet challenge our operations to identify innovative ways to operate more efficiently. We are right on our target, and have reduced MTCO
2E/Revenue
intensity to 12.5, a 33 percent reduction since 2011. Our 2020 goal focused Grainger on doing business the right way by investing in 5.3 MW of renewable energy and energy efficiency through the installation of Building Management Systems (BMS). To drive progress toward this goal, our GHG target is included in the performance appraisals for our corporate sustainability team. In addition, energy reduction projects reduce utility expenses and improve operating expenses, indirectly affecting profit sharing for U.S. team members.
33%
GHG Reduction by 2020
Intensity Target Goal
0 30,000
60,000
90,000
120,000
150,000
2017201620152014201320122011
0 2
4 6
8 10
12 14
16 18
20 MTC0 2E/REVENUE (MILLION)
MTC0 2E
Scope 2: MTC02e (market-based)
Scope 1: MTC02e
Intensity Metric (MTC02e/Revenue (million))

18.7 16.8 16.9

15.7 15.1 14.7

12.5*

Valuing
Our People
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

OUR SUPPLY CHAIN
Supply Chain Stewardship
Transportation
Energy Use We continue to invest in key facility enhancements, engage employees, and incorporate sustainability principles and continuous improvement into our real estate footprint.

Grainger’s facilities account for about 90 percent of our annual energy use in North America. We focus our efforts to improve energy efficiency in our largest buildings, including corporate offices and DCs.

Renewable Energy We are committed to doing business
the right way and embed sustainability into our operations wherever feasible. In total, Grainger currently has 5.3 MW of solar panels installed on the rooftops of its DCs. These systems have met all energy generation and financial expectations, have minimal maintenance requirements, provide a reliable monthly financial benefit and offer a significant percentage of energy independence, lowering operational risks.

Facility Performance Optimization
In 2017, in order to help benchmark and standardize
opportunities across our network, we conducted
deep dive energy audits on 4 of our 10 major DCs
in North America. We discovered commonalities
among energy loads and batteries, HVAC systems,
lighting, conveyor systems and air compressors,
to name a few. All of these areas offered strategic
opportunities for long-term efficiency gains. We then
rolled out our discoveries to our branch network and
corporate and administrative facilities, with similar
success. Additionally, we found it to be very effective to implement comprehensive building management
systems in key locations, update to LED lighting
and other turn-key solutions with great return on
investment timeframes, and various other initiatives.

PHOTO: A combination of natural and LED lights provide the right mix of lighting sources

ENERGY HEAT MAP
This graphic represents one
month of energy usage at our
Jacksonville DC. The red
represents the highest kW energy
usage peak, or demand peak,
for a given day. Heat maps like
this one help us discover outliers
in DC energy use and optimize
our facilities to conserve
resources and reduce cost.
90th Percentile 714.7 kWh
50th Percentile 475.5 kWh
10th Percentile 95.0 kWh
0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 6/01
6/02
6/03
6/04
6/05
6/06
6/07
6/08
6/09
6/10
6/11
6/12
6/13
6/14
6/15
6/16
6/17
6/18
6/19
6/20
6/21
6/22
6/23
6/24
6/25
6/26
6/27
6/28
6/29
6/30
JUNE 2017
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
0 1,000
2,000
3,000
4,000
5,000
6,000
Solar Production (kWh) SRECs Produced
643
20112010 2012 2013 2014 2015 2016 2017
5,874
5,4705,773
5,334
3,8353,601
2,793

SOLAR PRODUCTION
Valuing
Our People
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

OUR SUPPLY CHAIN
Supply Chain Stewardship
Transportation
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
34 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT In 2017, Grainger celebrated the grand opening of its new DC in Bordentown Township, N.J. (NEDC) The 1.4 million-square-foot facility stocks more than 300,000 items and allows the company to deliver more products by the next day to customers in the Northeast. The DC runs on state-of-the-art distribution technology enabling real-time order processing. A 4.3 megawatt solar panel system was installed on the facility’s roof. This system included 13,000 high efficiency SunPower solar panels that generate on average about 40 percent of the DC’s annual electricity requirements, which is equivalent to 1.6 percent of Grainger’s North American carbon footprint. In early 2018, the U.S. Green Building Council (USGBC) approved LEED GOLD certification for the NEDC. This project will not only reduce annual operational expenditures significantly, but it will also play a key role in helping us meet our GHG reduction goals. This project will not only reduce annual operational expenditures significantly, but it will also play a key role in helping us meet our GHG reduction goals.

We consider investments in renewable energy on a case-by-case basis as part of new project plans. Our decisions to invest often occur in locations where we can offset energy use, improve operational efficiency and create a return on investment.

Building Management Systems Our BMS are the primary
means through which Grainger achieves its energy efficiency goals. When operating optimally, they allow facility managers to provide the proper working environment while minimizing Grainger’s energy costs. Effective utilization allows us to extend the operational life of equipment and systems through reduced

energy consumption and operating hours. As a result, maintenance and capital costs are reduced, and less embedded energy is consumed through equipment replacement and upgrades.

Currently, 14 of our largest facilities have either been built with or retrofitted with BMS. On average, Grainger has realized a 10 to 15 percent reduction in energy use and expenses at its facilities after installing BMS.

LEED Certification Grainger has been a member of the
U.S. Green Building Council (USGBC) since 2007, and remains committed to building Leadership in Energy and Environmental Design (LEED) certified facilities. We use the USGBC’s LEED certification programs to guide best practices for the design, construction and operation of our facilities. Since 2008, we have made a commitment to build all new corporate projects to meet LEED standards, and seek certification under rigorous third party reviews. It’s proven that LEED-certified buildings use 25 percent less energy with a 19 percent reduction in aggregate operational costs in comparison to non-certified buildings. Grainger currently

maintains 5.5 million square feet of LEED certified space through 17 North American facilities, representing 24 percent of Grainger’s total square feet in North America. This includes the first LEED certified building in the MRO industry, the first LEED certified DC in Monterrey, Mexico, the largest LEED-CI Platinum project of 2015, and the world’s first LEED V4 data center.

LEED-certified space through 17
North American Grainger facilities
square
feet5.5M
Reduction in energy use
and expenses at Grainger facilities
after installing BMS
10-15%

Valuing
Our People
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

0.0 0.5

1.0 1.5

2.0 20172016201520142013

CTO RATIO

DOLLARS, BILLION

1.52 $9.44 $9.96 $9.97 $10.1 $10.4

1.53 1.54 1.55 1.57
Revenue (dollars, billion)
Carton-to-order ratio

PACKAGING PERFORMANCE
Ship Complete Given our 90 years of experience and more than 100,000 transactions a day, we understand the purchasing habits and buying behaviors of our customers. We know how they purchase online at home is different than at work. While a general consumer shopping for personal products at home may be fine with a staggered approach to completing a multi-product order, that same person has a completely different mindset at work when all of the products need to be there together to complete a critical project.

Grainger strives to ship all items in an order in one box and on the same or next day, depending on customer needs. Internally, we refer to this practice as “ship complete.” This approach and commitment to serving customers in the most efficient way possible also has positive implications on the environment.

Ship complete reduces the amount of boxes we need overall, thereby increasing energy efficiency and producing fewer

emissions through our transportation partners.

Sustainable Packaging As part
of Grainger’s commitment to ethical
sourcing, we work closely with suppliers
to identify potential opportunities to
minimize unnecessary packaging
while reducing the risk of damage
to the products we offer. In 2015,
we introduced Supplier Packaging
Guidelines to our U.S. and GGS

suppliers to encourage them to take
sustainability into account when making
packaging decisions. The guidelines
include best practices to help reduce damage and waste while maximizing recyclable materials. For example, the iconic Grainger boxes are fully recyclable, made from 43% post-consumer content and certified by the Sustainable Forestry Initiative.

In 2016, all U.S. Grainger DCs transitioned packaging materials for light bulbs from foam to kraft paper made with 100 percent recycled raw materials. The paper is produced at a paper mill certified by the Sustainable Forestry Initiative with a closed-loop water system that produces no municipal wastewater. The transition was a win-win-win: a cost saving for Grainger, easy to recycle for our customers and better at protecting our product.

In select DCs, we have transitioned to a custom wrapping solution that employs automated technology to provide right-sized packaging for oversized items, reducing the overall amount of packaging required. We continue to expand our use of plastic

air pillows as dunnage for small parcel shipments, of which most are bio-degradable (non-oxo-salt containing material), and, in 2016, we transitioned to a high-efficiency film air pillow, which helps reduce overall plastic use.

Packaging Performance Grainger’s DCs are dedicated to reducing corrugate usage and packaging and freight expenses.

We measure packaging and corrugate efficiency by tracking the number of boxes we send over the number of orders we receive. This data point, called carton-to-order ratio (CTO), helps us understand the positive effect that shipping orders containing multiple items in one box can have on our environment.

Company initiatives, such as pricing changes and adjustments to order routing logic, favor shipping orders in one box. Nevertheless, slight increases in CTO are expected, given the effect these initiatives may have on the way DCs experience volume. An increase in customer orders and products per order may require additional cartons. However, when mapped against increases in volume, CTO has remained relatively flat YoY.

CARTON-TO-ORDER RATIO
Grainger boxes
are fully recyclable,
made from 43%
post-consumer
content

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

OUR SUPPLY CHAIN
Supply Chain Stewardship
Transportation
Recycling and Waste
By standardizing recycling practices and sharing best practices across our network, we are continually improving the recycling rate in our U.S. DCs. Teams are trained to use a color-coded system to separate and bale materials such as cardboard, plastic wrap and metal and are encouraged to share and test ideas for ongoing improvements. As a result of these efforts, our U.S. DCs routinely recycle upwards of 84 percent of what would otherwise be waste streams. To that end, in 2017 we began to lay out a longer-term strategy and framework for how to achieve landfill-free operations in our DCs.

To maintain a high level of accountability in our materials management process, the sustainability team shares monthly reporting with the DC teams and members of the operations leadership team. Local DC facility managers also have
recycling rate as part of their annual performance goals.

Resource Efficiency
Grainger does not directly manufacture the products it sells so our water consumption is minimal. However, we do measure our water footprint and look for opportunities to reduce usage, such as installing water-efficient fixtures and landscaping irrigation at our largest facilities. Grainger’s total water consumption in the U.S. in 2017 was 467,840 cubic meters.

DC NETWORK RECYCLING RATE
(Amount of waste diverted from a landfill)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 20172015201420132012

74.2% 74.6%

78.0%

84.1% 84.8%84.7%
Since our sustainability team began to partner with our DCs to focus on recycling, we have improved our overall recycling rate by more than 14%.
• The DC network
recycling rate finished
2017 at 84.8 percent.
•

Memphis DC saw the
highest improvement
with a 5 percent
increase in their 2017
recycling rate.
•

The recycling rates at
Cleveland, Los Angeles,
Dallas, and Greenville
also improved in
2017 vs. 2016.
• Cleveland DC finished at

90.6 percent for best in
class, with Los Angeles
DC and Jacksonville DC
close behind.

DC RECYCLING RATE

HIGHLIGHTS
2016 Recycling Rate
2017 Recycling Rate
Distribution Centers
Jacksonville
FL
JXDC
Cleveland
OH
CLDC
Los Angeles
CA
LADC
San Francisco
CA
SFDC
Minooka
IL
ILDC
Greenville
SC
GVDC
Kansas City
MO
KCDC
Dallas/Ft. Worth
TX
DFDC
Bordentown Twp.

NJ
NEDC
Memphis
TN
MTDC0
20 40
60 80
100

90.3%

89.0%

87.9%

90.6%

88.7%

90.4%

86.9%

80.5%

83.2%

82.3%

83.2%

84.2%

82.4%

80.1%

84.2%

87.1%

78.8%

83.7%

84.2%

84.5%
Valuing
Our People
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

OUR PRODUCTS
Helping Customers Reach their
Sustainability Goals
We work to create a more sustainable workplace for our customers and our communities through our Environmentally Preferable Product (EPP) Portfolio. We offer our customers one of the largest green SKU counts in the industrial distribution market, providing more ways to reduce energy consumption, conserve water, reduce waste and improve indoor air quality. In addition the company offers data-driven EPP analytics to our customers helping them track, report and grow their green spend. Similarly, we equip our customer-facing team members with training, sales tools and marketing support so that they can help customers achieve meaningful progress towards their sustainability goals and initiatives.

In 2017, we launched a cross-functional CSR Working Group sustainability sub-team with representatives from product management, external affairs and sales that focuses on assisting customers with their EPP procurement goals and promoting EPP solutions. This sustainability service and operations team brings collective experience in managing environmentally preferable product certifications and attributes, reporting, measurement, regulatory compliance and marketing of EPP solutions.

Manage Energy

ELECTRICAL

LIGHTING & CONTROLS
HVAC / R | STEAM

COMPRESSED AIR
Conserve Water
PUMPS, VALVES | FITTINGS
METERS | FIXTURES

PLUMBING EQUIPMENT

FILTERS
Reduce Waste

RECYCLING EQUIPMENT

PAPER & PACKAGING

SORBENTS
Improve Indoor Air
CLEANERS | AIR FILTERS

CLEANING EQUIPMENT

OFFICE PRODUCTS

PAINTS / COATINGS
Monitor use, filter impurities,
recycle and reduce consumption
of water resources at “point of use,”
behind the wall, and outdoors
Measure use, control
effectiveness and output,
and reduce consumption
of various types of energy
Facilitate recycling
and decrease landfill
growth through
recycled content
Create cleaner air within
facilities through lower
VOC’s filtration, and natural
products
Environmentally Preferable Products (EPP)
and Services
Each product in our EPP is designated by a
green leaf on Grainger.com ®, and comes with
its own specific set of attributes or certifications
highlighted in the technical spec section on the
website. The green leaf icon guides customers
toward more environmentally preferable
solutions. Products identified with this leaf fall
into two categories—those that are certified
by independent organizations and those
that have “green environmental attributes.”
A certification acts as a stamp of approval
and indicates that a product has met certain
environmental standards around attributes
such as “energy efficient” (ENERGY STAR)
or “low toxicity” (Green Seal). Attributes are environmental qualities or features tied to a specific product. We ask our suppliers to provide these attributes or certifications, and our external partner, UL Environmental Inc., verifies the viability of the attribute to the product.

GRAINGER EPP PORTFOLIO

Valuing
Our People
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

In 2017 we expanded this
portfolio of value-added
services, which largely
leverages the experience
and expertise of our Grainger
Energy Services Team. We

also work with our network of
partners in some instances to
help our customers achieve
their sustainability goals. The range of services includes site audits, payback analysis, utility rebate assistance, and recycling of replaced product. For example, Grainger can help facilitate a free lighting audit for customers considering a large interior or exterior lighting project. The audit consists of a site walk-through, fixture count, energy audit, return on investment, payback analysis, utility rebate assistance and applications (photo metrics), if applicable.

We continuously review our EPP for opportunities to provide tailored solutions to customers with sustainability and EPP procurement goals. Our EPP Portfolio offers more than
72,000 SKUs, including 33 certifications and 45 attributes.

In 2017, sales of environmentally preferable products totaled more than $532 million, which represents approximately five percent of our revenue.

Team members
who received some
form of training on
sustainability at Grainger
(2017)
434
Sustainability Training
In 2017, we launched a new module in our First Time Manager leadership development program. Our objectives were to
drive engagement and understanding in our sustainability initiatives across the business, bring awareness to the effect CSR has on our operations and gain insight from our team members on how they plan to tailor the CSR message to
meet their daily business needs. 434 team members learned about our value chain, environmental performance and the ways we serve our community.

In addition to our leadership development program, we are taking steps to improve the level of sustainability expertise in customer-facing roles. Grainger released a Sustainability Sales Guide for our account managers and customer service professionals in October 2017 to improve offer awareness by outlining our sustainability value-proposition. In addition, we developed a formal sustainability training program for all new account manager learning paths. Our objective is to bring greater value to sustainability-related customer engagements, assist customers in meeting their sustainable procurement goals, and take costs out of their business.

In 2017, we launched recycling training in our DCs as a

part of new member onboard and orientation.

Lastly, through a variety of online tools and resources, we provide our team members with a vast array of learning
opportunities they can explore at their own pace.

Sales of Green Product
(2017)
$532M+
Environmentally
Preferable Products
72k+

Valuing
Our People
Sustaining
Our
Environment

OUR OPERATIONS
Greenhouse Gas
Emissions
Recycling and Waste
Resource Efficiency

OUR APPROACH
Our Operations
Our Products
Our Supply Chain

OUR PRODUCTS
Helping Customers Reach

their Sustainability Goals
Environmentally Preferable
Products (EPP) and Services
Sustainability Training

Sustaining our Environment will now be Solutions and
Stewardship
•

Subjects will include efficient operations, packaging
efficiency, customer solutions and product stewardship
•
Metrics will include resource stewardship, product impact and lifecycle, continuity and solutions and translating efficiency into sustainability
• For supply chain stewardship, see Supply Chain
Forward
Emissions Reduction
Investments
$26.5M 85M mtCO2 $11M
Total CO2
Reduction
Average Emissions
Reduction Savings
We are proud to
have received an
A- rating for our
supply chain survey.

OUR SUPPLY CHAIN
Supply Chain Stewardship
Addressing emissions across our value
chain is as significant as addressing them
in our own operations. For the second year,
we are engaging with our suppliers through
the CDP Supply Chain survey to create
more change than would be possible on
our own. In 2016, this partnership helped
us engage with our suppliers to learn more
about their emissions reduction strategies.

In 2017, we received responses from 126
of our largest vendors, an increase of
more than 50 percent of suppliers from our pilot year. In total, our suppliers’ efforts reduced 85 million metric tons of CO 2 resulting in more than $11 million in average savings for their respective businesses.

Transportation
Grainger relies on a network of third-party carriers for its transportation needs. The company works closely with these providers to continuously identify opportunities to maximize efficiency and minimize fuel use. Grainger continues to be the only industrial supplier to be recognized by the U.S.

Environmental Protection Agency (USEPA) as a SmartWay
®
partner. The program provides a forum for the USEPA
and
businesses to collaborate in order to improve the
environmental efficiency of their supply chains’ transport by reducing GHG emissions and other air pollution.

CDP SUPPLY CHAIN SUPPLIER PERFORMANCE
Through our partnership with the CDP we were able to collect information about best practices in our supply chain. The graphic below shows the impact our supply chain has made by investing in sustainable technologies and practices.

IN THIS SECTION
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
40 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

WORKFORCE DEVELOPMENT
Giving
Team Member Activation
Serving Our Communities
Grainger’s culture of service extends into the local
communities where our team members live and work.

Our partnerships, products, and people enable us to provide vital resources to advance the lives of those around us. Our community investments reflect the nature of our business, and our commitments are driven by where we make the most of our resources. We focus on disaster preparedness and response, education and workforce development, and local civic and community engagement.

OUR APPROACH
Grainger works to support long-term resilient communities. Our community affairs efforts focus on disaster preparedness and response, education and workforce development and local and community engagement. We leverage the thought leadership of our executives, the at-the-ready spirit of volunteerism of our Business Resource Groups, our team members’ depth of knowledge in supply chain operations and our 90 years of experience with the communities where we live and work to help drive social benefits across North America. We work collaboratively with our community partners through a combination of resources including in-kind donations, team member volunteerism and our 3:1 matching gifts program.

Disaster Preparedness
and Response
As the threat of disaster intensifies,
disaster philanthropy must evolve
radically in order for communities and
economies to thrive. Organizations

well-versed in supply chain and logistics,
like Grainger, have a unique obligation
to provide support when disasters
occur. We combine years of experience,
the knowledge and capabilities of our
Corporate Emergency Response Team
and the partnership of the Red Cross to
deliver products and financial support
before, during and after natural disasters.
>>Learn More About Disaster
Preparedness and Response
Education and Workforce
Development
We believe at the heart of opportunity
lies education. As the world evolves,
the need for education becomes
increasingly important. Grainger is
dedicated to helping those who desire
an education, so they can better
themselves, their families and those
around them. We are proud of the
education and workforce development
progress we support, but we are most
proud and inspired by those who
endeavor to achieve more and strive for
a better tomorrow.
>>Learn More About Workforce
Development and Education
Local Civic and Community
Engagement
Led by our industry-leading 3:1
matching gifts program, our local
engagement pillar provides team
members with the opportunities to
direct support and in-kind donations
to the organizations their communities
value most.
>>Learn More About Local Civic and
Community Engagement
Grainger contributed
more than $24 million
in total corporate
giving in 2017
$24M+

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

DISASTER PREPAREDNESS

AND RESPONSE
As most agree, disasters around the world are increasing in frequency and severity, predominantly due to climate change.

The economic and social effect of these events is predicted to reach unprecedented levels within the next four decades.

Overwhelmingly, corporate gifts are directed to immediate disaster relief, as opposed to risk reduction before disasters or recovery efforts after. Despite the fact that the number of natural disasters continue to rise, disaster relief accounts for only two percent of overall corporate giving. In fact, more than five times as much relief is spent on immediate disaster response versus reduction or recovery globally.

Grainger provides service and support to communities affected by regional, national and global emergencies. Through these disasters, we have acted as trusted partners to restore the resilience of our communities. Grainger has been there, time and time again, to provide our customers and communities with a consolidated source for critical supplies and equipment needed to prepare, respond and recover. We assist first responders, first receivers, private sector organizations and non-profit partners with a wide range of emergencies. We seek to continually improve our response capabilities based upon lessons learned from each recovery effort.

American Red Cross
Pride in service, our products and our
supply chain expertise make us a natural
leader in disaster preparedness and
response. For that reason, we have been
a long-time partner of the Red Cross. In
fact, Grainger has donated more than $18
million in cash and product to the American
Red Cross since 2001, and the Canadian
Red Cross since 2009. Grainger offers
the broadest product portfolio in the preparedness market. The product categories presented are based upon recommendations from authorities including FEMA, the Centers for Disease Control, the U.S. Department of Health & Human Services, the Department of Homeland Security and the American Red Cross.

Each year, the American Red Cross responds to disasters across the country—from home fires to tornadoes and severe winter weather, hurricanes and floods to transportation accidents and explosions. The Red Cross not only provides food, shelter and clothing, but also offers comfort and care to those affected by disasters during their time of greatest need. Through our partner -
ship with the American Red Cross, we continue to leverage our resources, best practices in logistics, team member engagement and technology to assist in the accomplishment of their mission.

Grainger has given
more than $18 million
to
the American Red
Cross since the
partnership launched
$18M+
PHOTO: In 2017 , Cyndee Wehrheim logged 478 volunteer hours for the Red Cross.

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

Supply chain teams quickly repositioned critical
supplies within the Grainger distribution network of
branches and regional DCs. Grainger’s Roanoke
DC, located near Fort Worth, played a central role
in the distribution of supplies throughout response
and recovery operations. Grainger transportation
managers expedited deliveries in coordination with
state, county and local emergency offices. Grainger
supplied 10 truckloads of Meals Ready to Eat and
bottled water to support evacuation shelters.

The Future of Disaster Philanthropy
The United Nations
has said that every dollar invested into disaster preparedness saves $7 in disaster aftermath. As a supporter of the American Red Cross Annual Disaster Giving Program
® (ADGP), Grainger
invests in disaster relief before the disaster occurs, ensuring the Red Cross can pre-position supplies, secure shelters, maintain vehicles and train volunteers nationwide.

In 2017, we committed to the $1 million level of ADGP support for the American Red Cross. These funds were used to provide for activities like smoke detector distributions and installations, increased volunteer engagement opportunities and the sponsorship of local emergency response vehicles.

Through our partnership with the American Red Cross, we delivered $250,000 worth of in-kind donations to the affected areas in Texas, Florida, California and Puerto Rico. Also, our team members rallied, packing 2,500 comfort kits benefiting those living in shelters in Texas, Florida and California. The kits included basic necessities such as toiletries, wash cloths and more. 168

VOLUNTEERS
420
HOURS
2,500
KITS
=
+
168 Volunteers Packed 2,500 Kits
Totaling 420 Hours for American Red Cross
National Preparedness Month

Donation to the American
Red Cross Annual
Disaster Giving Program®
for Hurricane Harvey,
Maria and Irma
$250K
VIDEO: American
Red Cross Responds
to Home Fires Across
the Country

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

Home fires are the most common disaster in the U.S., and the Red Cross responds to one every eight minutes. In 2014, the Red Cross launched a nationwide campaign aimed at
reducing home fire deaths and injuries by 25 percent in the U.S. by 2020. Grainger supports the campaign with an
annual donation of smoke detectors, which are installed by volunteers and fire departments in at-risk communities. The campaign makes a huge difference, as more than 656,000
smoke detectors have been installed since the beginning of the program, including more than 68,000 donated by
Grainger thus far, and more than 332 lives have been saved, including 97 in 2017 alone.
1,900+ Volunteer Hours
Total Number of Smoke Alarms
Grainger has Donated (to date)
68,000+
Ready When the Time Comes ®
Volunteer Profile
In 2017 , Laura Lacher and her daughter participated
in the Sound the Alarm Event in Waukegan. They
conducted disaster planning with a resident and

local fire chief.
“I left the Sound the Alarm Event with a
sense of pride resulting from the time
we spent in our community; and for
Grainger’s role in partnering with the Red
Cross and Fire Department to make this
community support happen. I think that
more Grainger team members should
participate.”

LAURA LACHER, EXECUTIVE ASSISTANT
PHOTO (TOP, FROM LEFT): Hannah Swanson, Laura Lacher, Andrew Masters, Waukegan Fire Department Firefighter Justin Johnson PHOTO (BOTTOM): Laura Lacher (pink hat)

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

Many of the places where these disasters occur are
“missing” from any map and first responders lack
the information to make valuable decisions regarding
relief efforts. Missing Maps is an open, collaborative
project in which our team members help to map areas
where humanitarian organizations are trying to meet
the needs of vulnerable people.

In 2017 , Grainger partnered with the American Red
Cross on its Missing Maps Project. During Grainger’s
inaugural “map-a-thons” , team members used their
computers to identify buildings and infrastructure
in “unmapped” areas across the world to provide
the Red Cross and emergency responders with
better access in times of disaster. After the mapping
session, volunteers were equipped to continue
mapping on their own to provide additional support.

Through our efforts this year, 41 team members
provided 1,980 edits to disaster recovery areas and
mapped 1,952 buildings, including locations in Puerto
Rico, to assist in hurricane recovery efforts.
1,952
Total Buildings
Mapped by Team
Members
Malaysia
Mapped to Prepare for
2018 Vaccination
Initiave
Puerto Rico
Mapped to Assist Hurricane
Maria Relief Efforts

MISSING MAPS AREAS OF MAPPING
$300k+
Donations to Large
Disaster Events

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

WORKFORCE DEVELOPMENT
Giving
Team Member Activation
ROAD THROUGH OUR 90TH YEAR
In honor of the company’s 90th anniversary, team members throughout the U.S., rolled up their sleeves to support their local communities. In addition to giving back to their communities individually, many groups incorporated volunteering as part of team meetings and family events. While some team
members volunteered in the community, others did so onsite at or around a Grainger facility. In total, more than 2,000 team members contributed about 9,000 hours of volunteer service.

July Teacher Appreciation
Grainger incorporated
volunteerism in our annual family
picnic in Illinois – 40 team
members, family and friends
packed 800 teacher’s appreciation
kits filled with supplies that were
distributed to teachers in Illinois
serving Lake County and Chicago
Public Schools.

September Homeless Shelter
More than 50 members of the
African-American BRG across
seven states rallied to support
Covenant House, a homeless
shelter for youth, by providing
job readiness skills development
and life coaching.

October Wildfire Disaster Relief
To support survivors of the California wildfires living in shelters, 40 team members packed 600 Red Cross comfort
kits during a meeting of the Latino BRG in Ontario, CA.

October Hurricane Disaster Relief
In Lake Forest, IL, a team of 18 team
members in the Communications & Investor
Relations group packed 600 comfort kits to
benefit survivors of the summer hurricanes
that were evacuated to shelters.

November Veteran Assistance
The Veteran’s & Military Partner BRG
packed 400 comfort kits to benefit homeless,
disabled veterans in honor of Veteran’s Day.

May Food Drive
Oklahoma City Food bank gained the help of 12 Grainger
volunteers who sorted and loaded 17,160 pounds of food at the local post office as part of the Letter Carrier’s Food Drive.

March Nutrition Kits
We kicked off the 90th with our
first-ever onsite volunteer activity
at the annual Grainger Show,
which brings our team members,
suppliers, and customers together
over a few days in Florida. During
the Show, 60-plus team members
packed 900 nutrition kits to support
underserved students in Central
Florida. Grainger partnered with A
Gift for Teaching to distribute the
completed kits to two schools in
Central Florida.

November Red Cross
In Janesville, WI, 60 team members from
U.S. and Panama convened in Wisconsin
for a meeting and prepared cards for the
comfort kit builds for Veterans and volunteer
thank you cards for the Red Cross.

December Children’s Hospital
Team members volunteered to bring the winter
holiday season to children hospitalized in the Texas
Scottish Rite Hospital for Children in Dallas, TX.

AprilTree Planting
More than 55 Grainger top sales
team members from around the
world – known as “President’s
Club” partnered with Jean-Michel
Cousteau’s Ambassadors of the
Environment and volunteered to
plant trees in Maui.

JuneChicago Cares
Over 50 team members painted
Nicholson Technical Academy, a
Chicago Public School, as part of the
Chicago Cares Annual Serve-A-Thon.

AugustIndividual Volunteering
Team members also volunteered
individually, during the year,
serving more than 1,700 hours
collectively. One team member
volunteered as a guardian for a
94-year-old WWII Army veteran on
an Honor Flight to Washington, DC.

SeptemberLeadership Volunteering
Our leaders rolled up their sleeves during the company’s annual Grainger Forward meeting convening Grainger executives from around the world in our Lake Forest, IL, HQ campus. 90 leaders packed 900 Red Cross comfort kits to support those survivors of Hurricane Harvey and Irma who were living in shelters. This is the first time the company added a volunteer project to the annual meeting agenda.

OctoberMap-A-Thons
In Chicago and Lake Forest, IL, more
than 40 team members participated in
Red Cross/Grainger map-a-thons where
they plotted 1,952 buildings.

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

Participating
Colleges

EDUCATION AND WORKFORCE

DEVELOPMENT
Since 2001, Grainger has leveraged its passion for education and job training to create positive changes and new opportunities in our communities. We work with several non-profit organizations to build a foundation of new possibilities for highly motivated students based on need. We leverage the strength and support of our BRGs to partner with several organizations to provide guidance, funding and tools to students in our communities.

Giving
We invest in the future of the skilled trade workforce through our Grainger Tools for Tomorrow
® scholarship program. Each year,
Grainger works with the American Association of Community Colleges to offer two scholarships of $2,000 each at participating community colleges in the U.S. The scholarships are awarded to students in skilled trade, public safety and supply chain programs.

Half of the scholarships offered are earmarked for veterans of the U.S. Armed Forces. In addition to the scholarship, Grainger provides tools to students after they graduate to help them launch a successful career. Since 2006, Grainger has donated more than $4.5 million to support technical education. In 2017, 85 schools participated and we provided 154 scholarships. This represents a 74 percent participation rate, which since 2006 has exceeded the national average of 60 percent.

Grainger Tools for Tomorrow®
On October 4, 2017 , Grainger celebrated the
success of the Grainger Tools for Tomorrow®
scholarship program graduates at an event hosted
by the Latino Business Resource Group in honor

of the close of Hispanic Heritage Month at our
Los Angeles DC in Mira Loma, CA. During the
event, we presented scholarship recipients
with certificates and celebrated our workforce
development partnerships with local community
colleges. Arcadio Ochoa, Director of the LADC,
presented certificates to students from Chaffey
College and Saddleback College.
“ I would like to extend to you my sincere
gratitude to all at Grainger in presenting
this award to Kyle Moller from Saddleback
College. Your scholarship program is another
great reason why our students continue their
education. With Grainger’s kind generosity,
the journey is made possible. This award has
brought motivation and gratification, reminding
our students that hard work does pay off.

Thank you for recognizing the importance of
education and for recognizing our students
past and present as recipients of this award.”

RAJANPAL (RAJ) DHILLON
SR. TECHNICIAN, SADDLEBACK COMMUNITY COLLEGE
Total support to Education
and Workforce Development
partners since 2006
$4.5M+
PHOTO (FROM LEFT): Art Ochoa (Grainger), Kevin Kiner (Chaffey), Haven Griffin (Chaffey), Kyle Moeller (Saddleback), Raj Dhillon (Saddleback, Instructor), Rudy Juarez (Grainger) CREDIT: RENEE YOUNG

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

WORKFORCE DEVELOPMENT
Giving
Team Member Activation
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
47 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Team Member Activation
Grainger continues to support its local communities through the Business Resource Group Community Fund. Since its
inception in 2014, the Fund has aligned our BRGs with nonprofit partners to amplify the efforts of both. In 2017, we increased the effectiveness of this program by aligning BRG resources around one program area: workforce development. By encouraging the BRGs to collaborate, we believe we will strengthen the program and create even more meaningful outcomes.

In addition to an aligned program area, we have united the BRG Community Fund with another key initiative, our Executive Board Placement (EBP) Program. The EBP program provides high-potential executives an opportunity to refine and enhance their leadership skills, cultivate strong and strategic partnerships with local non-profits, and engage Grainger in civic activities that foster inclusion and diversity. Our goal with the EBP program is to leverage the valuable skills of our leaders with organizations that provide programs for community engagement, volunteer mobilization and team member development.

Grainger’s EBP Program started in 2008, with eight executives serving on non-profit boards. This number has grown to
23 executives; eight of the organizations supported by
the BRG Community Fund have a Grainger executive serving on their board.

One Million Degrees Four BRGs collaborated to support One Million Degrees (OMD) in 2017, including the African-American, Equality Alliance, Generational and Latino BRGs. OMD is dedicated to providing comprehensive support to low-income, highly-motivated community college students to help them succeed in school, work and life. From tutors and coaches to financial assistance and leadership development, OMD provides tools and resources that empower scholars to transform their lives. This year, Grainger became one of the largest providers of OMD coaches, with 26 team members serving as coaches to OMD scholars.

In 2017, Grainger sponsored OMD scholars from the College of Lake County (CLC) during a speed-networking event at our Lake Forest, IL, campus. Approximately 40 Grainger team members, some serving as OMD coaches, volunteered to hear and constructively critique the job interview skills of participating CLC students during an evening reception. This was the first such OMD event offered onsite at a corporation. The event was introduced by masters of ceremony Brent Tollison, Vice President of Commercial Sales, and Ben Nichols, Vice President of Government Sales, who serve on the boards of OMD and CLC, respectively.

i.c. stars Foundation This organization, supported by our Generational BRG, provides a rigorous technology-based work - force development and leadership training program for low-income adults, developing Chicagoland’s most promising information technology talent with leadership goals and connecting them with career opportunities through partner organizations like Grainger. Historically, Grainger has supported a cohort of “stars” who are given a real business challenge to solve. Grainger then may recruit members of the cohort for roles in our organization .

Nkosi White, now one of Grainger’s End Point Analysts, participated in an i.c. stars program and has been employed at Grainger for 10 years.

In the spring and fall of this year, the Generational BRG invited “stars” to participate in a career day at Grainger’s Chicago, IL, downtown campus. During the event, Grainger team members volunteered to share their career and development paths.

Total support of Education and Workforce Development
programs by the BRG Community Fund
$62k+

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

Through the program, the company offers a 3:1 match of

eligible team member contributions (up to $2,500 annually) to qualifying organizations.

The program places Grainger in an elite group of U.S. companies that match team members’ contributions at this rate. Our intention is to encourage our team members to engage with the
eligible non-profit organizations that matter most to them in their community.

Community Grant Program
The Company is proud to participate with The Grainger Foundation in the Grainger Community Grant Program (GCGP) to help
address local community needs throughout the United States and Puerto Rico. Since its inception in 2007, the GCGP has made more than 6,700 grants, totaling $54 million dollars.

Under the GCGP, Grainger’s Branch/Operations Managers,
Contact Center Directors and DC Directors identify charitable

organizations in their local communities and make grant recommendations to The Grainger Foundation ranging
from $2,500 up to $10,000. As a result of recommendations submitted throughout 2017, The Grainger Foundation made nearly 900 grants totaling $5.8 million to a wide variety of

organizations in the areas of health and human services, food banks, civic, disaster relief, and education. Human Service organizations represented the largest share of grants through the GCGP. The second largest was Community

Service organizations.

The Grainger Foundation, an independent private
foundation, was established in 1949 by William W. Grainger, the Company’s founder.

Serving Our Communities Survey
Our team members’ commitment to local communities is a key ingredient in the success of our community affairs program.

As the program develops and grows with our team, we wanted to better understand how connected our team members are to the partners and programs we offer. In 2016, we surveyed 2,100 U.S. team members within the organization. Nearly 600 team members responded to the survey (approximately 33
percent of recipients). In 2017, we surveyed 2,100 team members to help identify how we could enhance the spirit of volunteerism in 2018. New questions were designed to solicit team member feedback about their experience with Grainger’s 90th anniversary celebration activities.

More than half of team members surveyed indicated that
volunteering improves their engagement, holding consistently at 61 percent from 2016. In addition, 52 percent of team member indicated that they participated in Grainger’s volunteer program, up from 34 percent in 2016.

LOCAL CIVIC AND COMMUNITY

ENGAGEMENT
Number of grants
given in Grainger
Community Grant
Program
nearly
900
Total Matching
Gifts Contribution
$2.2M+

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

WORKFORCE DEVELOPMENT
Giving
Team Member Activation
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
49 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Grainger Around the Globe
Mexico Grainger Mexico found its way to give back to the community once again. During 2017, as an initiative of its Women’s BRG and through their community affairs program, they called upon their team members to voluntarily support and assist women in need through maintenance services
for a rehabilitation center for women with cancer as well as bringing support to a rehabilitation center for women with addictions, causing a positive effect to more than a hundred women and their families.

Team Mexico has also sponsored a local robotics team,
TigreRobotics, with product to support their initiatives such as building arm prosthetics for children and taking part in various competitions such as FIRST
®, with the goal of
inspiring students to be science and technology leaders.

During 2017, Grainger Mexico donated $1.7 million pesos in product to the Red Cross to help during the tragic
earthquake that shook the country. The team also donated an overall amount of $114.8 million pesos to local nonprofit organizations in product; inspired 45 team members to
participate in a blood donation program that helped saving 132 lives and continued with internal recycling, waste
reduction and energy saving programs.

Working Mother Mexico recognized Grainger Mexico as one of the best companies that support working families in the country and for seeking equality in opportunities for female talent, especially that of working mothers. Also, for the fourth year in a row, the Mexican Center for Philanthropy recognized the company with the 2018 Empresa Socialmente Responsable Award. This group annually

recognizes companies that demonstrate excellence in social responsibility and have a commitment to team members, investors, customers and their local communities.

PHOTO (LEFT, FROM LEFT): Rafael Vázquez, Miguel Salazar, Armando Bocanegra, Magdiel Martínez and Hector Pedraza from the TigreRobotics team. PHOTO (RIGHT): Grainger Mexico team members from the Women’s Business Resource Group assist in maintenance and repair of a women’s rehabilitation center.

Valuing
Our People
Serving
Our
Communities

DISASTER PREPAREDNESS

AND RESPONSE
American Red Cross
Team Member Activation

LOCAL CIVIC AND

COMMUNITY ENGAGEMENT
Matching Gifts Program
Community Grant Program
Serving Our Communities Survey
Grainger Around the Globe

EDUCATION AND

WORKFORCE DEVELOPMENT
Giving
Team Member Activation
A Letter From Our
Chairman & CEO
A Letter From Our
Executive Sponsor
Grainger At
A Glance
Operating
Responsibly
Valuing Our
People
Sustaining Our
Environment
Serving Our
Communities
50 GRAINGER 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT Canada Acklands-Grainger’s efforts focus on three pillars of community investment: disaster preparedness, Aboriginal development and skilled trades. Acklands-Grainger is a
national founding partner of Ready When the Time Comes®, a disaster preparedness program administered by the
Canadian Red Cross. The program prepares employees of
organizations to mobilize as a community-based volunteer force when disaster strikes. Acklands-Grainger supports the Canadian Aboriginal community through its support of the Canadian Council on Aboriginal Business, and supplier diversity, with its support of the Canadian Aboriginal and

Minority Supplier Council. In 2017, Acklands-Grainger
began supporting the skilled trades in Canada through its partnership with Skills Ontario, a Canadian leader in skilled trades development.

United Kingdom During 2017, Cromwell launched its
“Charity of Choice Campaign” in which 46 percent of team members voted for Macmillan Cancer Support. The company also kick-started its partnership with the World’s Biggest Coffee Morning, a fundraising event for people facing cancer.

Team members all over the United Kingdom came together
to show support by hosting their own Cromwell on-site Coffee Morning! This fantastic day consisted of raffles, cake bingo and more, raising the equivalent to 122 hours of funding for a Macmillan Nurse. Team Cromwell continued to raise money for great causes such as Comic Relief, Children in Need and Save the Children. In total Cromwell and the UK team raised nearly £5,000, exceeding the 2016 amount of just over £2,500.

China Grainger China focused on drives and donations in their local community in 2017. Team China collected more than 6 boxes of clothing and office supplies, which will be distributed to need-based organizations supporting children and adults. This donation represents the eighth round of donations organized over the past five years.

Europe Disaster struck in June and July of 2017,
when wild fires ripped through central Portugal. Fabory team members stepped in to help people in Oliveira de
Hospital, Arganil, Tondela, Penacova and Oleiros who
had lost homes, belongings and employment as a result
of the fires. The team collected food, building materials, furniture, kitchenware, clothing and personal hygiene
products. They provided these items in person to families in need so they could begin rebuilding their lives.

WHAT’S COMING IN OUR 2019 REPORT
•

Serving our Communities will be included in the
People and Purpose pillar.
•

Metrics will include greater information on company
contributions and team member activation within
our signature partnerships.

Forward
9k+
Total number of
volunteer hours

DISCLOSURE NUMBER GRI STANDARD TITLE DISCLOSURE TITLE PAGE NUMBER OR DATA POINT 102-1 General Disclosures Name of the organization W.W. Grainger Inc. 102-2 General Disclosures Activities, brands, products, and services Grainger At A Glance, Pages 6-11
Fact Book, Pages 1-8
Annual Report
102-3 General Disclosures Location of headquarters Lake Forest, Illinois 102-4 General Disclosures Location of operations
Grainger At A Glance, Pages 6-7
Fact Book, Page 1
Annual Report Pages, 4-7
102-5 General Disclosures Ownership and legal form Annual Report Pages, 4-7 102-6 General Disclosures Markets served
Grainger At A Glance, Pages 6-11
Fact Book, Pages 1-8
Annual Report
102-7 General Disclosures Scale of the organization
Grainger At A Glance, Pages 6-11
Valuing Our People, Page 29
Fact Book, Pages 9-12
Annual Report Pages, 4-7
102-9 General Disclosures Supply chain
Grainger At A Glance, Pages 6-11
Sustaining Our Environment, Page 31, 37-39
Fact Book, Page 5
Annual Report, Page 6
102-10 General Disclosures Significant changes to the organization and its supply chain Annual Report Pages i-iii Fact Book, Pages 1-12
102-11 General Disclosures Precautionary Principle or approach Grainger does not have a position on the precautionary approach
102-12 General Disclosures External initiatives
While Grainger has not endorsed any
external initiatives, this report makes
reference to several of the Global Reporting
Initiative’s (GRI) Standards for reporting
purposes, and our CSR Working Group
is working toward a report prepared in
accordance with the GRI Standards
102-13 General Disclosures Membership of associations United States Chamber of Commerce National Association of Wholesalers
102-14 General Disclosures Statement from senior decision-maker Letter from the CEO, Page 4
102-15 General Disclosures Key impacts, risks, and opportunities Letter from the CEO, Page 4
Letter from the Executive Sponsor, Page 5
Grainger At A Glance, Page 7
Fact Book, Pages 1-12
Annual Report, Item 1A, Pages 7-10
102-16 General Disclosures Values, principles, standards, and norms of behavior Operating Responsibly, Page 13 2018 Proxy Statement, Pages 23-25, 79
102-17 General Disclosures Mechanisms for advice and concerns about ethics Operating Responsibly, Page 13 102-18 General Disclosures Governance structure
Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-19 General Disclosures Delegating authority
Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-20 General Disclosures Executive-level responsibility for economic, environmental, and social topics
Operating Responsibly, Pages 17-18
Letter from Executive Sponsor, Page 5
Board Affairs & Nominating Committee
Charter
102-21 General Disclosures Consulting stakeholders on economic, environmental, and social topics Letter from the Executive Sponsor, Page 5 Grainger At A Glance, Pages 7-10
102-22 General Disclosures Composition of the highest governance body and its committees Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-23 General Disclosures Chair of the highest governance body Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-24 General Disclosures Nominating and selecting the highest governance body Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-25 General Disclosures Conflicts of interest
Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-26 General Disclosures Role of highest governance body in setting purpose, values, and strategy
Operating Responsibly, Pages 17-18
Annual Report, Page 33
2018 Proxy Statement, Pages 1-36
102-27 General Disclosures Collective knowledge of highest governance body Operating Responsibly, Pages 17-18 2018 Proxy Statement, Pages 1-36
102-28 General Disclosures Evaluating the highest governance body’s performance Operating Responsibly, Pages 17-18 2018 Proxy Statement, Pages 1-36
General

DISCLOSURE NUMBER GRI STANDARD TITLE DISCLOSURE TITLE PAGE NUMBER OR DATA POINT 102-29 General Disclosures Identifying and managing economic, environmental, and social impacts
Letter from the CEO, Page 4
Letter from the Executive Sponsor, Page 5
Grainger At A Glance, Pages 6-11
Operating Responsibly, Pages 16-17
2018 Proxy Statement, Pages 23-24, 79
Annual Report, Item 1A, Pages 7-10
102-30 General Disclosures Effectiveness of risk management processes Letter from the CEO, Page 4
Letter from the Executive Sponsor, Page 5
Grainger At A Glance, Pages 6-11
Operating Responsibly, Pages 16-17
2018 Proxy Statement, Pages 23-24, 79
102-31 General Disclosures Review of economic, environmental, and social topics 2018 Proxy Statement, Pages 17, 24 102-32 General Disclosures Highest governance body’s role in sustainability reporting Letter from the CEO, Page 4
Letter from the Executive Sponsor, Page 5
Operating Responsibly, Pages 16-17
2018 Proxy Statement, Pages 17, 24
102-33 General Disclosures Communicating critical concerns Grainger Investor Relations Website 102-34 General Disclosures Nature and total number of critical concerns Annual Report, Page 11 102-40 General Disclosures List of stakeholder groups Grainger At A Glance, Pages 6-11 102-42 General Disclosures Identifying and selecting stakeholders Grainger At A Glance, Pages 6-11 102-43 General Disclosures Approach to stakeholder engagement Grainger At A Glance, Pages 6-11 102-44 General Disclosures Key topics and concerns raised Grainger At A Glance, Pages 6-11 102-45 General Disclosures Entities included in the consolidated financial statements Fact Book, Page 1 Annual Report, Pages 4-7
102-46 General Disclosures Defining report content and topic Boundaries Grainger At A Glance, Page 6 102-47 General Disclosures List of material topics Grainger At A Glance, Pages 6-11 102-48 General Disclosures Restatements of information Sustaining Our Environment, Page 31 102-49 General Disclosures Changes in reporting None
102-50 General Disclosures Reporting period January 1, 2017 - December 31, 2017 102-51 General Disclosures Date of most recent report May, 2017 102-52 General Disclosures Reporting cycle Annual
102-53 General Disclosures Contact point for questions regarding the report Sarah Power 102-54 General Disclosures Claims of reporting in accordance with the GRI Standards While Grainger does not make any claims
as to the use of external initiatives in
preparation of this report, this report makes
reference to several of the Global Reporting
Initiative’s (GRI) Standards for reporting
purposes, and our CSR Working Group
is working toward a report prepared in
accordance with the GRI Standards
102-55 General Disclosures GRI content index GRI Content Index 102-26 General Disclosures External assurance
Grainger At A Glance, Page 7
103-1 Management Approach Explanation of the material topic and its Boundary Grainger At A Glance, Pages 6-11
Operating Responsibly, Page 12
Valuing Our People, Page 19
Sustaining Our Environment, Page 31
Serving Our Communities, Page 40
103-3 Management Approach Evaluation of the management approach Grainger At A Glance, Pages 6-11 Corporate Governance, Pages 17-18
201-1 Economic Performance Direct economic value generated and distributed Fact Book, Pages 9-12 201-2 Economic Performance Financial implications and other risks and opportunities due to climate change Annual Report, Item 1A, Pages 7-10 201-3 Economic Performance Defined benefit plan obligations and other retirement plans Annual Report, Pages 56-60 203-2 Indirect Economic Impacts Significant indirect economic impacts 2016 Proxy Statement, Section, Page X 205-1 Anti-corruption Operations assessed for risks related to corruption Operating Responsibly, Page 13 205-2 Anti-corruption Communication and training about anti-corruption policies and procedures Operating Responsibly, Page 13 205-3 Anti-corruption Confirmed incidents of corruption and actions taken None, Material items would be disclosed in
our Annual Report on Form 10-K for the
fiscal year ended December 31, 2017
206-1 Anti-competitive Behavior Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
None, Material items would be disclosed in
our
Annual Report on Form 10-K for the
fiscal year ended December 31, 2017
301-1 Materials Materials used by weight or volume Sustaining Our Environment, Page 36 301-2 Materials Recycled input materials used Sustaining Our Environment, Page 35 301-3 Materials Reclaimed products and their packaging materials Sustaining Our Environment, Page 35 302-1 Energy Energy consumption within the organization Sustaining Our Environment, Pages 32-34 302-2 Energy Energy consumption outside of the organization Sustaining Our Environment, Page 39 302-3 Energy Energy intensity Sustaining Our Environment, Pages 32-34 302-4 Energy Reduction of energy consumption Sustaining Our Environment, Pages 32-34 302-5 Energy Reductions in energy requirements of products and services Sustaining Our Environment, Pages 37-38 General (continued)
Management Approach
Economic
Environmental

DISCLOSURE NUMBER GRI STANDARD TITLE DISCLOSURE TITLE PAGE NUMBER OR DATA POINT 303-1 Water Water withdrawal by source Sustaining Our Environment, Page 36 303-2 Water Water sources significantly affected by withdrawal of water Sustaining Our Environment, Page 36 303-3 Water Water recycled and reused Sustaining Our Environment, Page 36 305-1 Emissions Direct (Scope 1) GHG emissions Sustaining Our Environment, Page 32 305-2 Emissions Energy indirect (Scope 2) GHG emissions Sustaining Our Environment, Page 32 305-3 Emissions Other indirect (Scope 3) GHG emissions Sustaining Our Environment, Page 39 305-4 Emissions GHG emissions intensity Sustaining Our Environment, Page 32 305-5 Emissions Reduction of GHG emissions Sustaining Our Environment, Page 32 306-1 Effluents and Waste Water discharge by quality and destination Sustaining Our Environment, Page 36 306-2 Effluents and Waste Waste by type and disposal method Sustaining Our Environment, Page 36 306-3 Effluents and Waste Significant spills
None, Material items would be disclosed in
our Annual Report on Form 10-K for the
fiscal year ended December 31, 2017
306-5 Effluents and Waste Water bodies affected by water discharges and/or runoff None, Material items would be disclosed in
our
Annual Report on Form 10-K for the
fiscal year ended December 31, 2017
307 -1 Environmental Compliance Non-compliance with environmental laws and regulations None, Material items would be disclosed in
our
Annual Report on Form 10-K for the
fiscal year ended December 31, 2017
308-1 Supplier Environmental
Assessment New suppliers that were screened using environmental criteria Sustaining Our Environment, Page 39
2017 CSR Report
Operating Responsibly, Page 14
308-2 Supplier Environmental
Assessment
Negative environmental impacts in the supply chain
and actions taken
Material items would be disclosed in our
Annual Report on Form 10-K for the fiscal
year ended December 31, 2017
403-1 Occupational Health and Safety Workers representation in formal joint management–worker health and safety committees
Valuing Our People, Pages 21-22
403-2 Occupational Health and Safety Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities
Valuing Our People, Page 20
No fatalities in 2017 .
403-3 Occupational Health and Safety Workers with high incidence or high risk of diseases related to their occupation
Grainger has not identified any operations
with high incidence or risk of disease related
to occupation
404-1 Training and Education Average hours of training per year per employee Valuing Our People, Pages 21, 24 404-2 Training and Education Programs for upgrading employee skills and transition assistance programs
Valuing Our People, Pages 23-28
404-3 Training and Education Percentage of employees receiving regular performance and career development reviews
Valuing Our People, Page 25
407 -1 Freedom of Association and
Collective Bargaining
Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
Grainger has not identified any operations
where the right to freedom of association
is at risk.
408-1 Child Labor Operations and suppliers at significant risk for incidents of child labor
Grainger has not identified any operations
where there are significant risks of child
labor.
409-1 Forced or Compulsory Labor Operations and suppliers at significant risk for incidents of forced or compulsory labor
Grainger has not identified any operations
where there are incidents of forced or
compulsory labor.
410-1 Security Practices Security personnel trained in human rights policies or procedures Grainger has not identified any operations
where there are significant risks of human
rights violations.
411-1 Rights of Indigenous Peoples Incidents of violations involving rights of indigenous peoples Material items would be disclosed in our
Annual Report on Form 10-K for the fiscal
year ended December 31, 2017
412-1 Human Rights Assessment Operations that have been subject to human rights reviews or impact assessments
2017 CSR Report
Operating Responsibly, Page 15
412-2 Human Rights Assessment Employee training on human rights policies or procedures Operating Responsibly, Pages 13-14 412-3 Human Rights Assessment Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening Operating Responsibly,
2017 CSR Report, Page 9
413-1 Local Communities Operations with local community engagement, impact assessments, and development programs
Serving our Communities, Pages 40-50
413-2 Local Communities Operations with significant actual and potential negative impacts on local communities
Grainger has not identified any operations
where there are significant actual or potential
negative impacts on local communities.
414-1 Supplier Social Assessment New suppliers that were screened using social criteria Operating Responsibly,
2017 CSR Report, Page 9
414-2 Supplier Social Assessment Negative social impacts in the supply chain and actions taken Grainger has not identified any negative social impacts in the supply chain
418-1 Customer Privacy Substantiated complaints concerning breaches of customer privacy and losses of customer data
Material items would be disclosed in our
Annual Report on Form 10-K for the fiscal
year ended December 31, 2017
419-1 Socioeconomic Compliance Non-compliance with laws and regulations in the social and economic area
Material items would be disclosed in our
Annual Report on Form 10-K for the fiscal
year ended December 31, 2017
Social
Environmental (continued)
* This index makes reference to the Global Reporting Initiative’s GRI Standards. Although we reference the GRI Standards to provide context to our report, our report has not been prepared in accordance with the GRI Standards

Visit www.graingercsr.com for our most up-to-date news.

Grainger, Grainger and Design, Grainger Tools for Tomorrow ®, Grainger.com® and Supplier Diversity Logo are the trademarks or service marks of W.W. Grainger, Inc., which may be registered in the U.S. and/or other countries. All other trademarks and service marks are the property of their respective owners. 2018 Corporate Social
Responsibility Report
www.graingercsr.com

©2015 Grainger Service Holding Company, Inc. W-XSTE700_1 8SP6793 Lighting Solutions
Benefits to Your Business
• Reduced operating costs
• Upgraded infrastructure
• Warranties on new equipment
• Lowered operational risk
• Avoided maintenance expenses
• Reduced facility carbon footprint
• Improved quality of light
• Improved payback and ROI targets
Comprehensive Services
• Interior and exterior applications
• Audit and financial analysis
• Material, contractor and project management
• Installation by qualified, insured and licensed service partners • Administration of utility rebates
• Disposal and recycling
Energy-Efficient Lighting Solutions
The Grainger Lighting Solutions team serves as your resource to help implement a comprehensive lighting retrofit of your facility through its network of qualified, insured and licensed service partners. Working closely with you, our service partners will help identify and facilitate the installation of energy-saving lighting measures that will help benefit your bottom line with minimal disruption to your business. Our service partners will also help you secure applicable incentives and rebates for your energy-saving project.

End-to-End Solutions
Upgrade your interior and exterior
lighting for maximum energy
efficiency without disrupting
your business.

Let us help facilitate a proposal for your consideration.

We’re confident you’ll see value in retrofitting your facility with help from the Grainger Lighting Solutions team.

Lighting retrofits simply make dollars and sense!
Save Money. Live Green.
graingerlightingsolutions.com
866-597-1330

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HVAC
Energy Savings Guide
Your tool to saving energy and costs
in your HVAC system

ADDRESSING THE ENERGY DILEMMA
Source: Carlsson, Thomas; “Indoor Air Filtration:

Why Use Polymer Based Filter Media”, Filtration and
Separation, Volume 38 #2, March 2001, pp 30-32
2 Addressing the Energy Dilemma
Energy demand and cost is on the rise. As federal and international regulations continue to develop to help reduce our global carbon footprint, a viable solution is critical for businesses and facilities to remain productive.

For a typical commerical facility, after Lighting/Compressed Air/Steam Systems, HVAC Systems/ Filters and Motors and Drives represent the largest opportunity for energy savings. By addressing these elements, you can help address the energy dilemma and increase your productivity.

Life Cycle Cost
Components of Filters
Air filtration is a significant opportunity for
cost savings as energy accounts for over
80% of the life cycle cost. While the original
investment in purchase and ongoing
maintenance are important factors, energy
is by far the most important component.
ëëëëëë
ëëëëëë
• • ••••
• • ••••
$
$
$ $
$
$ $
$
HVAC, Motors
& Drives
Lighting, Compressed
Air, Steam Systems
Electric Utility,
IT/Computers
Building
Envelope
*Source: Tudi Haasl, PECI, O&M
Best Practice Series, Portable
Dataloggers, 1999, energystar.gov
Filters
$
$
$
Disposal 0.5%
Energy 81.0%
Investment and
Maintenance 18.5%
Source: Tudi Haasl, PECI, O&M Best Practice Series, Portable Dataloggers, 1999, energystar.gov Air Filtration—A Case in Point
3COST OF AIR FILTRATION
Cost of Air Filtration
Don’t wait. Start saving energy now with a high efficiency air filtration system. Replacement of cartridge filters with high efficiency filters could result in significant energy savings, and it’s also easy to implement. In the example below, replacement with high efficiency filters delivered annual energy savings of $125.78 per filter. Multiply that saving by the number of filters in your facility— and realize significant energy savings.

Reduce Load, Reduce Energy Use in Your
HVAC System
Reducing your HVAC’s system’s load is key to energy savings. Reducing HVAC load can help existing systems operate less frequently and allow newer systems to be more efficient. Here are some common strategies to help save energy:

Tighten up your building envelope
• Perform regularly scheduled maintenance
- Replace air filters
- Inspect ductwork and piping for leakage or damaged insulation • Evaluate motor and drive performance to help optimize productivity - Consider variable frequency drives on air handling units, cooling tower fans and chilled water pumps
- Inspect and replace belts
• Inspect and repair leaking or sticking steam traps
• Check door openings and window seals, and plug leaks with weather stripping and caulking Meter and control
• Choose simple, integrated meters to track energy use • Upgrade to “smart” thermostats
Source: www.grainger.com/airhandler
Assumptions
CFM: Volume of Air (ft.3/min)
Ce: Cost of Power ($/kWh)
T: Time Period (hrs.)
Ki: Motor and Blower Efficiency
ISP: Initial Filter Resistance (w.g.)
Cp: Annual Energy Cost of Operation ($/yr.)*
Annual Energy Cost Savings
High Efficiency V-Bank Minipleat
2,000

0.128
8,760

65.0%
.34
$137.94
$125.78/filter
Cartridge
2,000

0.128
8,760

65.0%
.65
$263.72
*Cp = CFM x (5.2 x ISP) x .746 x Ce) x T
33,000 x Ki
SIMPLE ENERGY SAVINGS SOLUTION: HIGH PERFORMING AIR FILTERS4 Simple Energy Savings Solution:

High Performing Air Filters
Heating and cooling buildings typically accounts for 40% of the total energy bill. Source: www.sba.gov The less resistance a filter causes, the less work a motor needs to exert in order to maintain the required airflow. This results in a reduction in the motor’s energy consumption. Managing filter resistance while maintaining your required efficiency for air quality can save both time and money.

A simple and effective way to ensure your HVAC system is energy efficient is with high performing air filters. Significant energy savings are possible due to low pressure drop. Low pressure drop is achieved through highly refined electrostatically charged media, open filtration media structure, and high surface area design.

Pleated filters are a good choice for applications that require high efficiency with low initial pressure drop. High efficiency pleated filters contain media that is folded like an accordion, which allow for greater surface area and lower resistance to air flow. They are available in standard size pleats or mini-pleats.

In the example below, use of MERV 7 pleated filters generated an annual energy cost savings of $52.74/filter vs an HC Pleat. The potential energy savings per filter (Cp) used the calculation created by ASHRAE. Variables in the calculation include the volume of air to be filtered (CFM), the initial filter resistance (ISP), the cost of power (Ce), the time period for analysis (T) and the motor and blower efficiency (Ki).

Assumptions
CFM: Volume of Air (ft3/min)
Ce: Cost of Power (4/kWh)
T: Time Period (hrs)
Ki: Motor and Blower Efficiency
ISP: Initial Filter Resistance (e.g.)
Cp: Annual Energy Cost of Operation
Annual Energy Cost Savings
MERV 7 Pleat
2,000
.128
8,760

65.0%
.17
$68.97
$52.74
HC Pleat
2,000
.128
8,760

65.0%
.30
$121.72
Source: www.grainger.com/airhandler
11Z806
V-Bank Air Filter
2GFG5
Mini-Pleat Air Filter
5CASE STUDY
Case Study: New HVAC Filtration System
Yields $1.8MM in Annual Energy Savings for
Leading University
In an effort to save energy costs, the HVAC team of a leading university conducted a pilot study at a 245K square foot campus facility. The new filtration system eliminated a pre-filter and incorporated 3M™ V-Bank with Gasket (MERV A15) as the exclusive filter. The new system delivered an estimated energy savings of $29,532, as well as reduced labor and disposal costs with annual filter replacement vs quarterly replacement. Based on the success of this pilot, the HVAC team expanded the filtration system campus-wide (15 MM square feet), generating an annual energy savings of $1.8MM for the university.

Measure
Square Footage
Number of Filters
Annual Filter Cost
Annual Energy Cost
Annual Labor Cost
Annual Disposal Cost
Estimated Annual Total Cost of Ownership
Existing System
245,000
125
$10,625
$48,113
$2,241
$313
$61,291
New System
245,000
125
$22,000
$18,581
$448
$188
$41,217
Annual Savings
-$11,375
$29,532
$1,792
$125
$20,074
Source: 3M Filtration
19F681
3M™ V-Bank Air Filter MERV A15/16
Initial dP of .26
AUDITING STEAM TRAPS 6
Auditing Steam Traps–Key to Energy Savings
Facilities depend on steam systems to deliver thermal energy that is clean, dry, and in some instances, even sterile. Sterilizers, coils and water heaters are critical components in health care, industrial, and food processing facilities. But since steam traps are open-ended valves, leaks and losses can pass unnoticed, representing significant energy losses. Replacing failed steam traps provides a quick and easy return on investment in energy savings alone. The following example demonstrates a $16,500 payback on an energy audit and trap replacement for a facility with 100 steam traps; these savings are multiplied over the course of subsequent years.

Input
# of Total Steam Traps
Steam Trap Failure Rate
Failed Steam Traps
Average Trap Failure Energy Cost/Trap
Total Estimated Lost Energy Cost
Inspection Program
Replacement/Installation of New Steam Traps
Energy Savings
Value
100
10%
10 $2,500
$25,000
($3,500)
($5,000)
$16,500
Source: Thermo-Diagnostics
35PD79
Heat Shield for Steam Trap
4NU72
Steam Trap
7THERMAL BLANKET
Thermal Blanket–Quick Return on Investment
For existing steam systems, installation of thermal blankets where insulation has been removed or never existed generates immediate energy savings. With quick installation or quick removal/ re-installation, the highly functional thermal blanket systems from Grainger can address problem insulation areas.

In the example below with installation of 53 thermal blankets, energy savings were over $36K, with a payback less than a year. Over the course of a 15-year life, estimated energy savings are over $500K.

Assumptions
Energy Savings
Total Operating Energy Cost – No Thermal Blanket
Total Operating Energy Cost – With Thermal Blanket
Total Operating Energy Savings with Thermal Blanket
Thermal Blanket System Installation
Thermal Blanket Installations
Thermal Blank System Cost
Labor for Installation
Total Project Cost
Payback (Months)
Lifetime Energy Savings (15 year life)
$’s
$40,483.36
$4,284.00
$36,199.86
53 $21,363,25
$2,160.00
$23,523.25

8.24 $519,474.65
Source: Shannon Enterprises of W.N.Y. Inc.
35PF31
Acoustic Blanket
FANS AND VENTILATORS 8
Fans and Ventilators–
Moving Air, Generating Savings
Keeping the air in your facilities moving can save energy. Upblast, downblast and inline fans can be used to achieve this goal and when paired with a direct-drive electronically commutated (EC) motor, you can decrease ventilation energy costs by up to 40-60%. These units are also fully speed controllable, helping to increase savings even more. Energy-efficient powerpacks are available to easily convert upblast belt drive or direct-ventilators to direct-drive EC.

Side by Side Comparisons
EC Motor vs Belt Drive
At 1500 RPM, the EC Motor has a 25% energy savings over the traditional belt drive. If the speed is adjusted to 1000 RPM, there is an impressive 45% energy savings.

EC Motor vs Direct Drive PSC
At full speed, the EC Motor fan has about 20% energy savings over the Direct Drive PSC Motor. When the speed is turned down 30%, the EC Motor’s efficiency remains constant, where the efficiency of the Direct Drive PSC Motor drops significantly. This represents about 70% in energy savings. 5DVT4
Downblast Vent, Direct Drive
Measure
RPM
Watts
Energy Savings
EC Motor
1,500
480
25%
Belt Drive
1,500
640
EC Motor
1,000
180
45%
Belt Drive
1,000
330
Source: Dayton/Solutions for Air
Measure
RPM
Watts
Energy Savings
EC Motor
1,720
220
20%
Direct Drive PSC
1,720
270
EC Motor
1,200
75 70%
Direct Drive PSC
1,200
260
9METER, CONTROL AND SAVE
Source: 2003 interview by William Feldman with Jean Lupinacci, director of the Commercial and Industrial Branch of Energy Star© at the EPA
Meter, Control and Save
Automatic metering systems provide a snapshot of energy use and demand with dynamic dashboards to display building operation and energy consumption information. For example, an energy dashboard may show that a building’s ventilation system is over consuming. An easy solution is to reduce motor speed by only a few Hz to curb consumption with no impact on performance. Automatic metering combined with automation and control systems, variable speed motors, smart thermostats and time-programmable HVAC systems help ensure a building only uses the energy it needs.

Metering, when acted on, helps:
• Reduce energy use by up to 5% to 15%
• Meet sustainability initiatives
• Eliminate or shift energy spikes to off peak hours
Thermostat upgrades
Grainger offers a new generation of “smart” thermostat control equipment, systems and service solutions that make use of the latest technological advances.

Wi-Fi connected thermostats are making their way into buildings of all types and sizes due to their convenience and cost-savings benefits. A Wi-Fi connected thermostat makes it easy to reduce energy costs; just by turning the temperature back a few degrees when a building is empty can result in up to 30% energy savings. With “smart” thermostat control equipment, you have the convenience of controlling the environment in your building from anywhere to reduce wasteful heating and cooling and realize energy savings. 30ZZ03
Wi-Fi Connected
Thermostat
30PL32
Wi-Fi Connected
Thermostat
6PYH5
Power Meter
12V820
Energy Meter
19C696
Three-Phase Meter
23AU10
Motor
Source: Emerson
CASE STUDY 10
Source: Schneider Electric
Case Study: Pioneering Energy
Efficiency Project Projected to Deliver
over $27MM in Energy Savings
A 700+ bed hospital sought innovative ways to provide facility improvements while realizing energy savings. Following an exhaustive on-site audit, over 180 individual solutions were implemented to reduce energy consumption, including:
• Full overhaul of the HVAC system including installation of variable speed drive and automated monitoring and control of air handling units and pumps • Improved metering and monitoring of electricity, gas, and steam • Building management systems upgrade
This project is projected to deliver over $27MM in energy savings over the next 20 years by reducing energy consumption by more than 40%.
11MOTOR PRODUCTIVITY AND ENERGY SAVINGS
Motor Productivity and Energy Savings
Motors are essential for controlling an HVAC system; 85% of motors help control pumps, fans and compressors. They are also significant consumers of energy, consuming approximately 30% of energy of a building.

Source: Zachary Shahan, Electric Motors Use 45% of Global Electricity, 2011, cleantechnica.com Variable Frequency Drives for Improved
Motor Productivity
A VFD adjusts a motor output for peak demand and low
demand so you can get the most out of your motor while
saving energy. A VFD can improve energy savings up to 70%; these saving are achieved by operating in conjunction with a Building Automation System (BAS) or independently through its internal Proportional+Integral+Derivative (PID) capabilities.

A VFD is ideal for applications where speed control is critical, such as when operating compressors, pumps and fans.

Source: Mark Gmitro, Pump Energy Savings with VFDs, 2009, sustainableplant.com 14L808
Variable
Frequency
Drive
V-Belts for Motors’ Energy Efficiency and Life
Adoption of these three steps will help improve your motor’s energy efficiency and life:
• Use Raw Edge Cogged V-Belts. Raw edge cogged v-belts grip the sheave sidewalls better than wrapped v-belts, helping to minimize slip and improve efficiency • Replace Worn Sheaves. Sheaves with as little as 1/32” of wear may cause your v-belts to slip excessively
• Tension V-Belts Properly. The proper tension is the lowest tension at which the v-belts won’t slip or squeal under peak load
6A118
AX35 Cogged
V-Belt
6AGK7
V-Belt Tension
Checker
10Y311
V-Belt/Sheave
Groove Gauge
FOR MORE INFORMATION VISIT GRAINGER.COM/HVAC
©2015 W.W. Grainger, Inc. 8SP7003 #W-XOBT103

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3009 Grainger Sustainability Solutions Logo Concept_FNL.ai

RESOURCES
Department of Energy
energy.gov
EnergyStar®
energystar.gov
United States Environmental Protection Agency
epa.gov
HVAC Energy Management Products
grainger.com/hvac

PRODUCTS
Call 1-800-GRAINGER
Visit Grainger.com®
Contact your Grainger Representative
Any other trademarks, brand or images appearing herein are property of their respective owners. ©2015 Grainger Service Holding Company, Inc. W-XOBC930 Energy Services Potential Benefits to Your Business
• Improved use of energy and water
• Improved payback and ROI targets
• Reduced operating costs
• Upgraded infrastructure
• Warranties on new equipment
• Lowered operational risk
• Avoided maintenance expenses
• Reduced facility carbon footprint
Comprehensive Services*
• Multiple energy- and water-saving solutions
• Audit and financial analysis
• Material, contractor and project management
• Installation by qualified, insured and
licensed service partners
• Administration of utility rebates
• Disposal and recycling
Update your business operations for maximum efficiency without disrupting your business with Grainger’s network of qualified, insured and licensed service providers.*
Facility Upgrade Solutions
The Grainger Energy Services team serves
as your resource to help identify and
implement a wide range of energy- and
water-efficient solutions for your business
through its network of qualified, insured
and licensed service providers. Working
closely with you, our service providers can
help identify and facilitate the installation
of energy- and water-saving measures
to help benefit your bottom line with
minimal disruption to your business. Our
service providers can also help you secure
applicable incentives and rebates for your
energy- and water-saving projects.

Lower Energy Costs
Help reduce monthly costs with
efficiency solutions.
graingerenergyservices.com
866-597-1330
* Provided by third party service providers.

Subject to customer eligibility and agreements.
©2015 Grainger Service Holding Company, Inc. W-XOBC930
Questions to
Ask Yourself5
If you would like more information, or to see if your facility qualifies for an on-site evaluation, call us at 866-597-1330 or contact your Grainger Rep to learn how you can benefit from these energy- and water-saving services.

1. Does your facility have older, less energy- and water-efficient products?

2. Does your facility have longer operating hours or heavy water usage?

3. Would you like to reduce your energy and water bills while improving the performance of your operation?

4. Are you interested in learning about incentives available to your facility for energy-saving projects?

5. Are you interested in enhancing your property’s value? 1 2
3 4
5 Energy Services
Let us help facilitate a proposal for your consideration.

We’re confident you’ll see value in upgrading your facility with help from the Grainger Energy Services team.
©2016 W.W. Grainger, Inc. W-YOBT136-1 8SP7434
Water Conservation
Upgrade Projects
Energy Services Multi-Measure Solutions
Through our network of third party service providers, you can find a wide array of services which include auditing, specifying, supplying, installing, commissioning and utility rebate processing for your energy- and water-saving projects.

Dust Collection System Studies
and Upgrade Projects
Electric Vehicle Charging
Station Projects
Steam Trap System Studies
and Upgrade Projects
HVAC Projects
Lighting Projects
Motor and Pump Projects
Compressed Air System Studies
and Upgrade Projects
graingerenergyservices.com
866-597-1330
©2017 W.W Grainger, Inc. W-ZUPM628

GRAINGER SERVICES NETWORK
Take advantage of quality training seminars led by an industry-experienced, certified team of third-party instructors. Participants receive hands-on safety and industrial skills development that can be applied on the job immediately. Training can be scheduled on-site at customer locations or off-site at scheduled locations across the U.S.

TECHNICIAN SKILL & SAFETY TRAINING
FOR MORE INFORMATION, CONTACT YOUR GRAINGER REP OR CALL 1-800-GRAINGER NOTE: These services are not available to government customers.

COMPLIANCE – ELECTRICAL
1910.269 Electrical Safety for Power Generation,
Transmission & Distribution
2015 NFPA 70E/Arc Flash Electrical Safety
2018 NFPA 70E/Arc Flash Electrical Safety
2017 National Electrical Code
2017 NEC Practical Applications for Building & Facilities Electrical Safety: Hands-On Practical Skills Application Electrical Systems in Hazardous Locations
Grounding & Bonding of Electrical Systems
Life Safety Code
® (NFPA 101)
National Electric Safety Code
NFPA 110: Standby Power Generation
NFPA 70B: Electrical Equipment Maintenance
NFPA 72: National Fire Alarm & Signaling Code
NFPA 79: Electrical Standard for Industrial Machinery
NICET Levels I & II

ELECTRICAL
Advanced Transformers Maintenance & Testing
Battery Maintenance & Testing
Cable Fault Location & Tracing
Cable Splicing & Termination Medium Voltage
Cable Testing & Diagnostics
Circuit Breaker Maintenance Low & Medium Voltage
Electric Motors: Understanding & Troubleshooting
Electrical Maintenance & Testing Training
Electrical Print Reading
Fiber Optic Training
Industrial Electricity Basics
Industrial Electronics & Circuits
Infrared Thermography
Instrumentation & Process Control
PLC: Siemens Step 7
PLC: Allen-Bradley ControlLogix
®
PLC: Automation Systems
PLC: Programmable Logic Controllers
Protective Relay Maintenance Basic & Advanced
(Mechanical)
Protective Relay Maintenance Generator
Protective Relay Maintenance Solid State
Substation Maintenance 1 & 2
Transformer Maintenance & Testing
Troubleshooting Electrical Control Circuits
Tuning DDC/Process Control Loops
Variable Frequency Drives

MECHANICAL
Backflow Prevention & Cross-Connection Control
Ball Screw Applications & Techniques
Bearings & Lubrication Principles
Centrifugal Pumps
CNC: Computer Numeric Controls – Troubleshooting
Conveyor Systems
Hydraulics Training & System Troubleshooting
IFPS Connector & Conductor Certification
Review Training
IFPS Industrial Hydraulic Mechanic Certification
Review Training
IFPS Industrial Hydraulic Specialist Certification
Review Training
IFPS Industrial Hydraulic Technician Certification
Review Training
IFPS Mobile Hydraulic Mechanic Certification
Review Training
IFPS Mobile Hydraulic Technician Certification
Review Training
IFPS Pneumatic Specialist Certification Review Training Infrared Thermography
Machine Tool Alignment: 3-Axis Alignment
Machine Tool Alignment: 5-Axis Alignment
Machine Tool Alignment: Concepts
Machine Tool Alignment: Positioning & Accuracy
Mechanical Drives/Power Transmission
Pneumatic: Electro-Pneumatics Training
Pneumatic: Industrial Mechanical Systems
Predictive Maintenance
Shaft Alignment with Laser Alignment
Ultrasonic Testing
Vibration Analysis
Welding Certification, Principles & Procedures
COMPLIANCE – MECHANICAL
Confined Space Entry
DOT Hazardous Materials
Fall Arrest/Fall Protection Training
Hazardous Waste Operations (HAZWOPER)
Hoisting & Rigging
Natural Gas Maintenance & Safety
Plumbing Standards
HVAC
Advanced Air Conditioning & Refrigeration
Air & Water Balancing
Air Conditioning & Refrigeration
Balancing of Water & Air Systems
Boilers: A Technical & Operational Workshop
Brazing for HVAC
Chillers: Operation & Maintenance of Chilled
Water Systems
Heating & Ventillation