A Study On The Internal Supply Chain-Based Cost Control For Medicine Commercial Group Company

The relative status of cost is a key competitive ablity of a medicine commercial group company. The effectiveness and efficiency of enterprise cost management rely on the scientific and logical of cost control system directly. Currently, cost control system of medicine commericial group company has too narrow intention and scope, as well as disperse cost ownership and rough methods. How cost management system can be rebuilt through innovation of flows and tools in order to control cost and cut down expenses effectively has become a pressing challenge to medicine commercial group company. This paper probes into the cost control of medicine commercial group companies. By introducing the concept of value-based management and supply chain management, this paper establishes a value-based internal supply chain cost control system for medicine commercial group company, which optimizes the cost and value of the whole group company, and effectively sustains the cost management.This paper has six chapters. Chapter One is introduction. Chapter Two is a thorough survey and analysis of group company management and cost control, value-based cost mangement theories and methods, supply chain cost management theories and methods. Chapter Three is an evaluation of current cost control system of medicine commercial group company. It expounds the limitation of existing cost control system of medicine commercial group company, and provides the avenues of improvement. Chapter Four presents a model of value-based internal supply chain cost control system for medicine commercial group company. It systematicaly discusses the concept, objective, principle, model and methods of value-based internal supply chain cost control system for medicine commercial group company. Chapter Five is a case study, in which a set of cost control system improvement projects is designed for N Medecine Co., Ltd. as an example. Chapter Six is the conclusion.