Research On Application Of SCM In Domestic Middle ＆ Small-Sized Enterprise

With the development of economy and extensive application of advanced technology, today's market is becoming more and more competitive. Competition means competition of cost management for modern enterprises to some extent. Over the recent decades, the inside and outside circumstances faced by the enterprises have experienced great changes. Enterprises should stand in the height of strategy, and look on the cost management with the strategic insight in order to adapt to the constantly changeable competitive environment. As decision support system for business administration, cost management should also carry on strategic expansion of function. then strategic cost management(SCM)came into being.Strategic cost management is cost management that considers organization competitive advantage and makes the company adapt itself to external changeable environment, it can also be defined as the use of cost information to do the following: help formulate and evaluate strategic; carry out tactics that implement strategies;And then develop and implement controls that monitor success at achieving strategic objectives.Though strategic cost management method has been widely used by some companies in foreign countries, it is only focused on research on SCM theory and few on its practice in China. In the situation, research on how to apply SCM theory to domestic enterprise practice is absolutely significative. Based on this, a model of strategic cost management , which is composed of environment analysis of SCM,mode cf SCM,strategic position analysis,value-chain analysis,cost driver analysis and performance evaluation, tries to be built in this thesis through the analysis and research on SCM theory. The model of strategic cost management can be looked forward to play effectively a guiding and referenced role in applying strategic cost management for domestic middle & small– sized enterprise (MSE).