Case 2
Whitmore Products:

Time Based Logistics at Work

Overview
From Whitmore’s perspective, the HomeHelp partnership offers substantial rewards, but at a price. This case demonstrates the all-encompassing change that is sometimes required for a firm to maintain long-term competitive success. Change is very difficult to achieve in organizations large and small. Laborers, managers and executives alike establish “comfort zones” that are difficult to break. The case follows John Smith as he first studies the potential benefits of refocusing production and logistics strategies before promoting the idea to top management.

Solutions to Questions
1.
As the supplier, Whitmore is faced with the ultimatum of effecting the change
(implementing the time based service strategy) or losing the HomeHelp business. To implement the time based strategy will require new approaches to production and logistical operations as well as significant, constant investments in technology. The changes are likely to affect the way
Whitmore conducts business with other customers and channel participants (suppliers, transportation providers, etc.).
As the customer, HomeHelp has issued the ultimatum to Whitmore Products. However, should
Whitmore elect to turn down the opportunity, HomeHelp will have to look elsewhere for products and service.
Though the issue is open to debate, it seems that both firms stand to benefit from the time based strategy. Both firms stand to gain potential competitive advantages by being the first in their respective industries to adopt time-based logistics practices. Ideally, alliances should create synergy, where the dynamics of the whole is greater than the sum of the parts -- both firms succeed at levels unachievable when alone. As noted above, significant investment is required of each firm to see the strategy reach fruition.

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