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Divide and Conquer: Rohm and Haas' Response to a Changing Specialty Chemicals Market

Author

Listed:
  • Anthony J. D' Alessandro

    (Rohm and Haas Company, 100 Independence Mall West, Philadelphia, Pennsylvania 19106)

  • Alok Baveja

    (School of Business, Rutgers University, Camden, New Jersey 08102)

Abstract

Rohm and Haas is caught between giant raw-material suppliers and powerful retailers at opposite ends of the supply chain. In the early 1990s, several new competitors entered the emulsions market, threatening the company's largest business unit, Polymers and Resins (P and R). P and R also faced increasing price pressure from customers and calls to improve the rate of return to corporate shareholders. In 1995, P and R formed a redesign team to examine its precepts. Over a three-year period, we aligned P and R operations around well-defined business policies, segregating products into make-to-stock and make-to-order supply channels, prioritizing customers, and serving nonstrategic customers through distributors. These changes saved millions of dollars, increased productive capacity, and transformed the business into a leaner, more disciplined operating unit.

Suggested Citation

  • Anthony J. D' Alessandro & Alok Baveja, 2000. "Divide and Conquer: Rohm and Haas' Response to a Changing Specialty Chemicals Market," Interfaces, INFORMS, vol. 30(6), pages 1-16, December.
    • Handle: RePEc:inm:orinte:v:30:y:2000:i:6:p:1-16
    DOI: 10.1287/inte.30.6.1.11627
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    References listed on IDEAS

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    2. Charles R. Sox & L. Joseph Thomas & John O. McClain, 1997. "Coordinating Production and Inventory to Improve Service," Management Science, INFORMS, vol. 43(9), pages 1189-1197, September.
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    Cited by:

    1. Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
    2. Lengu, D. & Syntetos, A.A. & Babai, M.Z., 2014. "Spare parts management: Linking distributional assumptions to demand classification," European Journal of Operational Research, Elsevier, vol. 235(3), pages 624-635.
    3. Brun, Alessandro & Zorzini, Marta, 2009. "Evaluation of product customization strategies through modularization and postponement," International Journal of Production Economics, Elsevier, vol. 120(1), pages 205-220, July.

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