The Research Of Cost Down Strategy For Supply Chain Of ABX Company

When era enters into 21 century, traditional logistic, from simply distribution became supply train. Supply train includes the process from procurement to production and distribution of product. Any enterprise who are considering to survive and develop has to advance the efficiency of supply train and reduce its cost. This thesis analyzed ABX company's cost down strategy of supply .ABX is a Japan-owned multinational group company, it manufactures laser printer and multi-function machine, as well as software of document processing. It enjoys a high reputation in document processing industry.From 1990s', competition of the industry which ABX company is being becomes hotter and hotter. In view of exterior, customer required that the unit price of ABX's product must reduce 10% every year, and competitor's cost get lower and lower; from interior view, cost of material was very high.Analyzed from supply train manage, we can say that supply train cost of ABX company is very high, to be more detailed, ABX'S direct material cost, working cost as well as transaction cost, is more than the average level of companies in the same industry.To solve the above problem, ABX company set down improving strategy. Its main content is: first reduce direct cost by VA VE campaign, secondly re-arrange production task and logistic flow to reduce working cost, the last is to concentrate supplier to reduce transaction cost.Every point is illustrated by introducing its background and problem, then state its salvation together with example taken from ABX company.