Analysis Of Cost Management Based On Supply Chain

In 2016,the gross profit rate of Fuyao Group was as high as 43.07%,when the profit of China's manufacturing industry was about 5%.The successful application of supply chain cost management contributed a lot.This paper analyzes the cost management method of Fuyao Group based on the perspective of supply chain,which is of referential significance to the development of China's manufacturing industry.Currently,the manufacturing industry is confronted with internal and external cost pressure.All costs increase and product demand quantity decreases,blocking corporate sustainable development greatly.Thereby,the importance of cost management becomes increasingly conspicuous.In order to seek existence and development and retain its core competitiveness,manufacturing enterprises not only need to depend on the optimization and utilization of internal resources,but also should make full use of other companies' resources through maintaining close cooperation with other enterprises.That is how to realize the quick response to market needs.Supply chain cost management,as an important part of supply chain management,extends traditional cost management ideas and methods with an eye to inner enterprises to the whole supply chain.It is a kind of adaptive change of traditional cost management to competitive environment change.Supply chain cost management would become a new breakthrough point for China's manufacturing enterprises to gain competitive advantage.On the basis of previous researches on the basic theories of supply chain cost management,this paper compares supply chain cost management with traditional cost management.Moreover,it combines the current situation of cost management of China's manufacturing industry to illustrate the feasibility and necessity of implementing supply chain cost management.Taking Fuyao Group as the research object,this paper combines qualitative analysis method and quantitative analysis method.Through concluding the application model of Fuyao Group's supply chain cost management and analyzing its effects,it has the following research findings.(1)In terms of strategic cooperation and technological innovation,Fuyao vigorously increases the self-sufficiency rate of original films and reduces the cost of raw materials through concentrating on supplier relationship management and the pressure of raw material price rising,thus controlling the upstream cost of supply chain properly.(2)In terms of lean management and flexible manufacturing,Fuyao combines lean manufacturing and six sigma management tools and methods to be applied in improving production process.It is conducive to lowering the rejection rate in export product process and increasing overall yield,thus reducing production costs and improving internal supply chain for lowering the effects of operating costs within organizations.(3)In terms of customer orientation and global-spread manufacturing bases,Fuyao focuses on customer relationship management.Its advantage of production base layout and strong synchronously-equipped research and development strength enable it to provide the service of real-time delivery for automobile manufacturers and save logistics costs and loss,thus achieving great downstream cost management of supply chain.The application model of Fuyao Group's supply chain cost management is replicable for the fact that China's manufacturing enterprises implement supply chain cost management in the present age of supply chain competition,which can provide ideas and reference for the supply-side structural reform and the development substantial economy in China.