Study Of Supply Chain Cost Control

With the boom of globalization, there is an increasing stress on quick response to user needs. Many world-famous enterprises are seeking for cooperation with suppliers and dealers, and establishing strategic alliance, which involves enterprise-to-enterprise supply chain. Cost control in supply chain management refers mainly to cost analysis, decision-making relating to supply chain management, factor analysis of other relevant components, and the practical implementation of control measures.The knowledge related to supply chain and its management is fundamental to this study. Therefore, this article first describes the concept and characteristics of supply chain and its management, points out that such management comprises all activities and operations of planning, coordinating, operating, controlling and optimizing the process from procurement, transport, processing, manufacturing, distribution of raw materials and components to delivery to end-customers by an enterprise.Whether an enterprise is designing or modifying its supply chain processes, the ultimate goal is to increase efficiency and revenue, better meet customer needs, thereby improving the enterprise's profitability by reducing costs. Accordingly, the key sections of this article analyzes different cost types on the supply chain in detail, mainly including procurement cost, transport cost, inventory cost, network information management cost and contract cost, etc.. The use of the multi-cost decision-making pattern shows the great advantages and development potential of supply chain cost control. This article further analyzes different factors relating to supply chain cost control, such as cost control before establishment, cost control in selecting partners, cost control in the operating process, order fulfillment cycle, customer value rate, production time flexibility of the supply chain, and how to improve supply chain cost control. At last, this article proposes specific measures of cost control.The intent of this article is to propose a cost control plan for supply chain, assess all costs of the supply chain, build a cost control system of supply chain management and ways of realizing cost control in practice. Considering the importance of fund management, it is very necessary to exercise cost control in the supply chain; considering the relative independence and equality of node enterprises in the supply chain, it is difficult to manage funds in the supply chain, and cost control is a key means of such fund management due to its diversity, substitutability, and speciality.