Study On The System Of The Target Cost Management Of Supply Chain On The Basic Of Activity

From 1990s, the Supplies chain and the Supply Chain Management have gotten the attention of the industrial world and the academic circles. At present, the commercial competition is mostly between one Supply Chain and another Supply Chain. The Supply Chain Cost Management has become the effective strategy of enhancing the Supply Chain competitive power. Only we have managed the cost of Supply Chain well, can we reduce the product cost furthest to gain competitive advantage. But the theorist's study on the Supply Chain Cost Management relatively gets behind , there isn't a management system authoritatively and effectively. In this article, we will study on how to construct the system of the Supply Chain Cost Management.This article firstly summarizes the theory of the Supply Chain Management and the Supply Chain Cost Management. Afterwards, after the analysis and comparison of Target Cost Management and Activity-Based Management, We educe that it is necessary and feasible to combine them. On the basis, according to the characteristics and requests of the Supply Chain Cost Management, the article elaborates the vital significance of using both Target Cost Management and Activity-Based Management to manage the Supply Chain Cost, and constructs a System of the Target Cost Management of the Supply Chain, on the Basic of Activities,the system can manage the cost on the activity level. The article also elaborates the procedure of the system ,at last , discusses some problems of carrying it into execution.