Research On The Cost Management Of Group Project Based On The Supply Chain Management Theory

With the rapid development of urbanization in China, the construction industry has ushered in a wave of group project construction. In the new period of development, construction enterprises are facing the situation of intense competition,low profits, as well as low efficiency of cost management. Therefore, to find a method of group project cost management which can not only raise the cost management efficiency, but also enhance the coordination management in the group project, has been a top priority to seek more development space for construction enterprises. The successful application of supply chain management theory in other industries provides a good reference for the reform of cost management in construction industry. In this paper, based on construction primary contractor, with the group project as the research object, the supply chain cost management is studied.The paper begins with the theory of supply chain and supply chain cost management, then summing up the characteristics and objectives of construction supply chain cost management. based on the above analysis, the paper defines the research contents of supply chain cost management in group projects. For the problems caused by many participants, uncertain relationship and the restriction of traditional cost management methods, the paper analyzes the feasibility and advantage by taking supply chain cost management strategies in the group project.Secondly, with the basic model of group project supply chain, the paper analyses the changes of general contractor, such as more proactive in coordination,promoting the information transmission in the supply chain, as well as strengthening procurement management. To meet the role of the core enterprise of supply chain cost management, the structure of the general contractor is optimized. Then,referring to the organization mode of virtual enterprise, the supply chain cost management system which cover all the supply chain participants is established,along with the operation mechanism of the system.Subsequently, led by the total construction contracting enterprise, the supply chain cost management system for group project is established from the relational dimension and the production dimension. In the relational dimension, the grey system theory is applied to selecting partners, thus establishing strategic partnershipbased on common cost targets. In the production dimension, third-party logistics and centralized procurement are applied, meanwhile, information technology is used to construct a whole chain information sharing platform to increase the speed of information dissemination.Finally, the paper analyzes the supervision role of performance evaluation for supply chain cost management, and select a group of indicators related to cost management as well as general construction supply chain to form the performance evaluation index system. On the base of the index system, the paper applies the method of benchmarking and builds a model to do the performance evaluation. In the end of the paper, the practicality of the supply chain cost management system and the performance evaluation model are tested in a case study, which shows that the research in this paper has a certain guidance and reference for the cost management of group project.