A Study on Optimizing Supply Chain Management for a Chemical Enterprise in a Niche Market

Flavors & fragrances are very unique and niche products, with the properties of chemicals but serving the FMCG market. There are thousands of kinds of raw materials and final products. According to Flavors and fragrances' customers, the products need to be full of innovation, so it's essential to strengthen quick response to market change. However, as far as suppliers concerned, those products are functional chemical products, so they strive to reduce costs. Therefore, the flavors and fragrances manufacturer MCO is in a dilemma situation to strengthen service and reduce cost as well. In this paper, we compare several types of supply chain management strategies and explore comprehensive application of different strategies in different scenarios. The factors of scenario include spending volume and geographical distance of suppliers or customers. The multiple models of supply chain can therefore play their most effective roles in reducing costs and also responding to rapidly changing demands.