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Supply Chain Change at Givaudan Flavors

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Choice and Rationale: - Solution A or BFrom a comparative perspective, Solution B is likely to deliver long-run benefits to both companies. While solution A suggests that Tastyco should increase its quantity demanded, it might not be quite a rational step in the short run. In addition, being highly depended on market fluctuations, the strategy shall also be unreliable in the long run. In contrast, solution B emphasizes alignment between the goals and values of the two companies, wherein long term efficiency can be expected from both the ends.

Moreover, as solution B aims to deliver benefits to both the companies along with long term benefits, it can be regarded as a better option (Tang and Musa 25-34). Implementation: Tastyco is the largest consumer of Givaudan. Thus, ignoring such kinds of consumers would result in a loss for the company. Perhaps, owing to the reason, Givaudan is spending highly on providing standard flavors to its customers. The quality of service it provides is also according to the needs of Tastyco. It is in this context that rather than breaking the alignment Tastyco should identify the disadvantages it might face under such a situation.

This may, in turn, benefit the company to ensure long-run sustainability and stability in its supply chain operations and channelize the intended change smoothly. In subsequence, the companies will be able to obtain greater competitive advantages from their partnership. Nevertheless, both Tastyco and Givaudan should make attempts to reduce dependency on each other, whereby Givaudan should also understand and respect the changes Tastyco intends to make (Tang and Musa 25-34).

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