Wastes Cost Management Based On Value Chain

Wastes not only waste huge resources but also cause serious pollution and other environmental problems. It is a great burden to enterprises who want to pursue better performances. Especially now, more and more kinds of resources become constrains of development of economy, and pollution starts to threaten the survival of human beings and other organisms, therefore, wastes become a big problem that enterprises can not ignore any more. Strengthening the wastes cost management not only good for the efficient and effective use of resources, but also good for the environment protection, which will bring huge economic benefits and environmental reputation to enterprises.Under the background of Enlarge Producer Responsibility, this paper will stand in the perspective of enterprises and discuss wastes cost management. According to different influences of wastes, we divide wastes cost into two parts: wastes resource cost and wastes pollution cost. Wastes waste resources, to reduce wastes resource cost means to use resources more efficient and reduce the production of wastes or eliminate them. Wastes cause pollution and other serious environmental problems that threaten the survival and development of human beings and other organisms. Therefore when we manage wastes pollution cost, profits is just one part of the objectives, we should also consider environmental impactions and other social impactions. In general, during the processes of wastes cost management, we should not just pursue wastes cost minimization, but also consider the negative impactions wastes bring to environment and society.On the basis of the introductions of wastes cost and the objectives of wastes cost management, we discuss steps of how to manage wastes cost by value chain method. First, we should find out the cost drivers of wastes cost; then find out the connections of different value activities based on those drivers; at last we should coordinate these value activities from a systematic perspective so that these activities could make a real smooth system that different value activities could highly coordinate with each other. Through these steps, wastes and their environment impactions can be reduced, and the objectives of wastes cost management can be achieved.Wastes resources cost management focus on reduction of wastes, while wastes pollution cost management focus on reduction of environmental impactions, they have different objectives. To make cost management more efficient, after we find out the cost drivers and the connections of different value activities, we discuss how to coordinate them by two parts. As design, purchase and production are the key processes that decide production of wastes and their impactions to environment, both of wastes resources cost and pollution cost management we will discuss how to coordinate the processes of design,purchase,production and the relationship with suppliers, so that these processes could make a real smooth system that wastes and the environmental impactions of wastes could be minimized. Specially, wastes pollution costs management also includes the management of the recycling process.