Research On Strategic Cost Management Of JZ Textile Co., Ltd.

China’s economic development has entered a new normal, began to mass efficiency development patterns were changed from speed-type scale, momentum from consumption of resources and rely mainly on low-cost labor to drive innovation. Changes in the economic environment and policy will intensify competition between the industry, in this economic situation, the national economy plays an important role in the survival and development of the textile industry is facing unprecedented challenges. Costs, falling profits, supply and demand imbalance resulting in increased inventory and other issues so that leading small and medium textile enterprises start for the future development direction and way of life to think deeply. The face of these immediate difficulties, become an effective way to control their costs of small and medium textile enterprises to regain competitive advantage. In this paper,the use of strategic cost management for small and medium textile enterprises cost control research, with a view to small and medium textile enterprises to obtain long-term competitive advantage inspire.Firstly, a lot of reading and studying literature and information, this article will present research results of strategic cost management and the basic theory of the sort and summarize.Then use case analysis, by JZ Textile Co. site visits, interviews, and information access and other real way to get detailed information, according to the development status of JZ Textile Co., further analysis of the company’s management concept behind the existence of cost, cost control obsolete and there is short-term issues such as the problems, the fundamental reason lies in the lack of strategic thinking company. Thus, the paper establishes the goals and principles of strategic cost management, build a suitable JZ Textile Co., Ltd. Strategic Cost Management System: a clear strategic positioning for the company’s development, namely cost leadership strategy; the company’s internal value chain and improve the industry value chain, strengthen cost control of the production processes, and strive to establish strategic partnerships with suppliers and customers; improved cost control methods, the use of target costing for product cost control, the pressure to reduce costs transferred to the appropriate process design and material selection; manufacturing costs allocated using activity-based costing, ensure the objectivity and accuracy of each product costs. Finally, strategic cost management in the implementation process should be fully integrated to collect relevant information, to strengthen cost control process and results of monitoring. We hope this JZ Textile Co., improve cost management and further contribute to obtain long-term competitive advantage, can also provide a reference for other small and medium textile enterprises to strengthen cost management.