Research On Supply Chain Cost Management Optimization Of JY Foreign Trade Company

As a place for production and operation,the company needs a certain cost to organize business activities.The foreign trade company connects the domestic and foreign markets,it earns profits through the difference in commodities to survive.Data from the National Bureau of Statistics shows that the number of small and micro enterprises accounts for more than 90% of Chinese enterprises in the end of 2018.In recent years,driven by the national “the whole people entrepreneurship”、“Belt and Road”、“cross-border e-commerce” and other policies,the number of small and micro enterprises participating in foreign trade has increased day by day,and the export market has become increasingly competitive.The fund base of small and micro enterprises is weak,the phenomenon of product cost over-consumption is gradually revealed.In recent years,on the one hand,because of the relatively slow speed of market expansion,on the other hand,due to the rapid growth of JY Foreign Trade ’s product material costs,labor costs and other costs,the company ’s profit rate has dropped from 7.85% in 2012 to 3.81% in2019,the profitability of enterprises has dropped significantly.In order to improve the operating efficiency of the enterprise,the article studies the supply chain cost management of JY Foreign Trade Company from the view of the supply chain.The article mainly adopts the methods of literature research and case study,and researches the current situation 、 existing problems and causes of supply chain cost management of JY Foreign Trade Co.,Ltd,this research according to the idea of "finding problems---analyzing problems---solving problems".On this basis,it proposes the method of optimize JY foreign trade company supply chain cost management.The article believes that the current problems of JY Foreign Trade Company’s supply chain cost management are:(1)The company’s organizational structure is unreasonable,which affects the organization of the company’s entire supply chain cost management;(2)The company’s business process is too long,and some positions keep poor communication between each other leads to a rapid increase in the company’s internal costs;(3)In the business transactions with suppliers,because JY company’s suppliers are relatively fixed,and the company has not adopted effective procurement methods such as economic batches,it leads to the procurement cost of semi-finished products is relatively high;(4)In the process of cooperation with distributors and logistics enterprises,there are problems such as high distribution costs,expensive logistics fees,and high customer development platform fees;(5)other costs in the supply chain,such as the existence of opportunity cost problems caused by slow receivables,and exchange gains and losses caused by exchange rates.The main reasons for the high supply chain cost of JY Foreign Trade Company are:(1)The person who is in charge of the company,does not pay enough understanding to the importance of cost management in the supply chain,and the company’s management ability needs to be improved;the general staff’s awareness of cost management is not strong,and the lack of effective communication between positions leads to higher internal costs of the company;(2)Unfamiliarity with the supplier’s market leads to a weak position in the cooperation game with the supplier,and also make no good use of the number of purchases to reduce procurement costs;(3)Due to the limited choice of distributors and weak negotiating ability with logistics companies,the distribution costs and logistics costs are higher;(4)Due to no enough attention on the collection of the receivables and the exchange rate changes,the enterprise lose part of the opportunity income and exchange loss.These will increase JY company’s supply chain cost.In view of the problems and causes in the supply chain cost management of JY Foreign Trade Company,the optimization measures proposed are:(1)Reorganize the company’s internal organizational structure,cut the business department,and re-divide the job responsibilities;(2)Optimize the business process,and rebuild the department,eliminating non-value-added services in the supply chain to reduce costs;(3)Adopting supplier databases、increasing the number of suppliers,and adopting the supplier’s last-elimination system to strengthen supplier classification and selection,finally,reducing purchase cost of finished products;(4)Strengthen communication and cooperation with distributors and logistics companies to reduce distribution costs and logistic costs;(5)Strengthen the management of accounts receivable and exchange rate risk,improve working capital efficiency and reduce business operating costs.Through the research on the supply chain cost management of JY Foreign Trade Company,the aim is to discover the problems in the process of supply chain cost management of JY Company,analyze the causes of the problems,and propose methods to optimize the cost management of the supply chain,and ultimately improve the economic benefits of JY Foreign Trade Company.It is also hoped that the research in this paper could provide useful reference for the supply chain cost management of other foreign trade enterprises.