W.W. Grainger Inc., Lake Forest, Ill., plans to fulfill but not renew its existing integrated supply contracts, and will no longer offer on-site purchasing and tool crib management services as part of it integrated supply operations.

The company's Integrated Supply segment was recently merged into its Industrial Supply division within the Branch-based segment, and is no longer reported as a separate business segment. Daily sales for the Integrated Supply unit were down 5 percent for 2004's fourth quarter due to the continued effect of disengagements of two large customers late in 2003, as well as lower sales to two large, existing customers. The segment had an operating loss of $1 million in the quarter as compared to earnings of $500,000 in the same period in 2003.