The Research Of Supply Chain Cost Control Strategy In R Company

In a globalized economy, the Multi-National Corporation is able to break the geographical restrictions, to obtain the most competitive resources in the most suitable place, including: procure the most competitive products; hire the most suitable talents, enjoy the most favourable interest &tax rate. But there is always some kind of linkage between those resources, so how to obtain an overall best solution is something important for Multi-National Corporation to consider about.This paper will study how R company build and optimize a global supply chain for selling the consumer electronic devices to African market. The high value and easily depreciate of consumer electronics products itself and the undeveloped economical and supply chain status in Africa makes this research has some unique value. This paper will target on the optimization of the total cost of ownership. Based on the difference in content and cycle time, it will classify the supply chain cost in the 3 categories: extended logistic flow cost, extended information flow cost, and extended cash flow cost. This kind of classification will help us to examine the supply chain cost in a different perspective, thus help us to optimize the cost control in a more efficiency way.This paper including three parts:(1) A introduction and analysis to R company’s supply chain and its cost structure and existing problems;(2) A classification of supply chain cost into 3 categories: extended logistic flow cost, extended information flow cost and extended cash flow cost. Making a detailed explanation to each category, and use it to make structural optimization to supply chain based on the optimization of the total cost of ownership.(3) A controlling system based on the optimized supply chain. Set up the evaluation index of supply chain performance from finance and human resource point of view, take reference of the SCOR model.The above analysis formed a complete, operable and controlled overall optimization solutions, provided a reference guide for R company to obtain the competitive advantage of transnational supply chain.