Woodson Chemical Company

Case 10

Woodson Chemical Company

Overview

In a market where products are commodity-like, customer service offers a prime way to set

yourself apart. The case indicates that differentiation can be achieved through quick and

accurate performance of order cycles. To shorten and improve order cycles, availability of

timely information is a necessity. this case illustrates the advantage of having smooth, consistent

information flows to complement inventory flows, and even supplant inventory in many cases.

To successfully implement the integration strategy, information availability throughout the supply

chain and perhaps across divisions will be necessary. Students should be able to address key

issues confronting Woodson Chemical and identify potential opportunities.

Solutions to Questions

1.

Critical issues may include but are not limited to the following:

• Sales across most divisions are leveling off or falling

• The company is trying to reverse downward sales trend by improving customer

service -- how is this to be accomplished?

• Management and communications bottlenecks with expanded operations

• The company believes that efficiency and effectiveness improvements can be

achieved through integration -- which is only possible with information technology

• Woodson Chemical might serve “common” customers by merging resources

2.

The text of the case cites that competitive advantage in the industry is gained “from a

focused market position, good raw materials supply..., and a lean efficient organizational

structure.” Students are encouraged to consider a number of possible changes or provide

explanation why the current approach is acceptable. Reasonable options may include integration

within WCC divisions and across the supply chain. Joining forces with other divisions as well as

with supply chain partners might develop synergism and greater efficiency in resource utilization.

Alliances with suppliers and/or transportation providers...