W. W. Grainger, Inc., is a broad-line distributor of maintenance, repair, and operating (MRO) supplies and other related products and services to businesses and institutions. The company primarily operates in the United States and Canada. Headquartered in Lake Forest, Illinois, Grainger employs approximately 23,700 people and recorded revenues of $9,437.8 million during the fiscal year (FY) ending in December 2013. The net profit was $797 million in FY2013, an increase of 15.5 percent over FY2012. Intense competition will create pricing pressure, which might affect the company's profits in the future.

Grainger distributes a wide portfolio of MRO supplies and related products and services through local branches, catalogs, and online. The products distributed by the company include material handling equipment, safety and security supplier, lighting and electrical products, power and hand tools, pumps and plumbing supplier, cleaning and maintenance supplier, forestry and agriculture equipment, building and home inspection supplies, vehicle and fleet components, and other items primarily focused on the facilities maintenance market. In addition, Grainger offers auto-reorder, emergency services, lighting services, repair and replacement coverage, inventory management, and online purchasing solutions.

During FY2013, the safety and security product line accounted for 18 percent of Grainger's total revenues. This was followed by material handling (13 percent); metalworking (10 percent); cleaning and maintenance (9 percent) pumps, plumbing, and test equipment (8 percent); electrical (7 percent); hand tools (7 percent); heating, ventilation, and air conditioning (HVAC) (6 percent); lighting (5 percent); and other product lines accounted for the remaining 17 percent of Grainger's revenues. The wide product and service portfolio increases the competitiveness of the company and positions it as a one-stop solution for maintenance, repair, and operating supplies. It also increases Grainger's cross-selling opportunities.

The company has expended its presence through strategic acquisitions in recent years. For instance, in September 2014, the company's subsidiary, Acklands-Grainger, acquired WFS Enterprises, a distributor of tools and supplies for industrial markets in Southern Ontario and select locations in the United States. This acquisition is expected to allow Acklands-Grainger to provide better selection and service to customers, especially in Eastern Canada in the manufacturing sector. In December 2013, Grainger acquired Safety Solutions, a distributor of safety footwear, supplies, and services with a strong focus on the manufacturing sector. The acquisition enhances Grainger's strong position in safety. In August 2013, they acquired E&R Industrial Sales, a distributor of metalworking production supplies and MRO materials to manufacturers and industrial customers across the Midwest and Eastern United States. In December 2012, the company had acquired Techni-Tool and its affiliate Wassco, specialist distributors serving manufacturing customers. This acquisition expands Grainger's product portfolio and adds customers operating in the electronics, telecommunications, and medical services industries.

Grainger's customer purchase patterns have changed significantly over the years and this has led to increased use of the firm's e-commerce channel. Grainger's customers are increasingly adopting e-commerce and the company has effectively tapped into this trend. Grainger is a pioneer in B2B e-commerce, having launched the Grainger.com web site in 1995. The e-commerce channel is the company's most profitable arm, creating a huge opportunity for sales and earnings growth. In FY2013, Grainger generated approximately 33 percent of its annual revenues through electronic channels. In addition, based on Internet sales revenue, the company was ranked 15th in the United States and Canada on the Top-100 e-retailers of 2013, indicating the company's progress in exploiting the e-commerce market.

With such a vast array of products, marketing approaches, and market segments the company is targeting, suggest an outline for performance metrics that would be appropriate for Grainger. How would your performance metric systems vary across some of their key market segments? Would there be a set of metrics that would be common to each customer and product segment? Explain.

Just looking for a general direction to go in terms of performance metric systems. I can't seem to wrap my head around it. Thank You!