Is this strategically something that Grainger should do? What has it not been considered that may be important?
The strategy was fine, but the Grainger should have looked for other factors. They have taken care of the increased demands in different localities by transporting their products to those cities.
Grainger follows the strategy of demand and supply, which means they were maintaining a balanced strategy which means supply must be equal to the level of demand, and they were maintaining this strategy.
Likewise, there were increased demands in the area of the Kanas City warehouse, and they did not focus on the warehouse demand. They focused on the city demand that was in Los Angeles. This strategy was effective for that point in time, but after that, it will be costly for them to maintain the overall production and transportation.
Grainger did not focus on the point that the whole process was increasing the overall cost of their business. They should at least focus on cross-docking, which could be a cost-effective technique. This will also help them to reduce the time of delivery which can also increase the customer satisfaction level and their trust in that brand. This will ultimately increase their profit.
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