The Cost Management For Value Chain Of C Container Liner Company Shuttle Routes

The development of shipping industry and the deepening reform of Chinese economy have provided a historical opportunity for China’s shipping companies exploiting sea-river joint transportation routes of domestic trades.In 2015,Fujian provincial applied to establish Free Trade Area(FTA)with the type of "one district,more parks",which will be grounded to build in an all-round manner.Fujian FTA undertakes the historical responsibility of deepening the economic exchange,promoting peaceful reunification if motherland both sides of the Taiwan Straits.In such a macro-background,all the Fujian shipping companies start to consider how to connect the source of goods from hinterland through the feeder ports and the existed Jiangyin main ports.For strengthening market competitiveness,the headquarter of C Company had opened shuttle routs for domestic trades in May,2014 to link Mawei Port with Jiangyin Port.After running over half a year,the accumulated deficit has reached RMB four hundred thousand which caused the whole Company extremely worried about continuing to operate or not..Thus,it needs to use scientific cost management theory----value chain to learn and optimize the issues,and tries to make up the deficits and get surpluses under the complicated inside and outside environment.This article reviews the research between home and abroad,which is related to value chain theory.And then it will simply introduce the basic theory and operation principle of cost management for value chain based on those researches.Furthermore,Paper takes 2014 shuttle routs operation of C Company for example,giving out comprehensive analysis about the specific composition of its value chain according to internal and external value chains of C Company.In addition,it points out the issues existing in internal value chain,such as freight management and marketing,routes design and dispatch,system support,operation and production,even the disbursement and settlement.Meanwhile,it also shows the issues happening in external value chain,including site supplier,transportation supplier and competitors,as well as how to affect cost management of C Company.The research shows that The Cost Management of C Company is still using the traditional internal cost Management-cost control mainly,paying less attention to the effect on the value of each link points to cost,lacking of the effective coordination,screening and maintenance in the upstream,mid-stream and downstream related parties,and result in the greater impact on the cost exist inefficient operation.Finally,based on the analysis mentioned above,it puts up with a number of countermeasures to optimize the internal and external value chains for Company respectively,and assess the possible effects by a variety of evaluation methods.