Study On Theory Of Supply Chain Strategic Cost Management

Enterprises face enormous development pressure from unpredictable market fluctuation under the current backdrop of economic globalization. Such development pressure has been extended upstream and downstream to supply chain competition other than previously pure competition. The most salient feature of management is to manage growth for20th Century, whereas this feature has been evolved to cost management for21st Century. The supply chain cost management is a key focus. The traditional cost management is incapable to remain intact as needed under current circumstances.Supply chain management is currently one of the prevailing management methodologies internationally. It is a combination of modern management techniques and ideas. The supply chain management is an advanced management concept with systemic procedure and quick response. Supply chain management applies for the systematic theory, which is set to enhance operation efficiency and improve cost control mechanism for all related parties aiming to satisfy various demands from customers. It is a win-win practice.Cost management has been a long-standing focus by manufacturers along with the commercial activities. There are three development stages for cost management including: the first stage is the to reduce waste, enhance cost control; the second stage is to improve large-scale production, cost control-oriented production; the third stage is current strategic cost management emphasizing on cooperation between cost control and company’s strategic development. Cost management has been a key focus by the companies to continuous pxplores and improves.Currently, there are quite a few studies on supply chain cost management and strategic cost management, but very few of them have formed a systematic research by combining these two. This article firstly states the related concepts, and conducts deeply analysis from the entry points of supply chain cost management and corporate’s strategic cost management, and then followed with review of its development trajectory for these two theories and related research both domestically and internationally. After that, we define the basic concepts and characteristics of supply chain strategic cost management. Therefore, we intended to bring the theory of strategic cost management into supply chain management, then we gradually form the theory of supply chain strategic cost management on the basis of existing theories stated by predecessors for strategic cost management and supply chain management.