The Study On Low-Cost Running Based On Supply Chain Management

In the nowadays, the competition between the corporation lies not only in the enterprises of one area or one country but the excellent enterprises in all world with the globalization of economy. One result of the intensive competition is that the uniformization and identification of management methods. Thus the old advanced theories and methods have been exploited entirely, and the new management method and theory should be called for if a corporation seeks for the competitive advantage.The theory of Supply Chain Management points out that the total cost of firms in Supply Chain could be cut in greatly and that their efficiency could be enhanced by the means of the reengineering of the Supply Chain, and then their competitive capacity could be promoted. Therefore, this theory gives birth to in a right time in that it gives enterprises a completely new methods to cut down their cost and seek for special competitive advantage.The essay hence illustrates the theme that enterprises could achieve the propose of low-cost running and the competitive advantage oflow-cost by the means of Supply Chain Management. The theory of Supply Chain Management, low-cost running has been researched entirely. And this essay points out the factor of business process and the content of 3-circulations, before points out the main measures of achieving low-cost running by the means of Supply Chain Management.And then, this article takes YangLing HengTai Green Hi-tech co. as object of exemplification studying. And the suggestions of HengTai's taking the stratagem of low-cost-focus are certain on the bases of analyses its present situation of Supply Chain. At the same time, the plan of Supply Chain Management of HengTai, including concatenation plan, management of vender pal and TPL plan, was set up so as to cut down the cost of HengTai from the aspects of provider-seller, producer-vendor and logistics. Finally, this article put forward principles of achieving low-cost Supply Chain Management, and gives some advises from the views of organization structure, management & control, MIS, performance appraisal, the encouragement of Supply Chain partner.