Research On Cost Management Optimization Of XL Steel Company Based On Value Chain

With the ceaseless growth of economic globalization,China's iron and steel industry has ushered in development opportunities,but at the same time,iron and steel enterprises have high production costs,the market tends to reduce saturated demand,overcapacity and the competitiveness of steel products in the international market decline and other problems need to be solved.If iron and steel enterprises want to achieve sustainable development and increase profits,they should not only change the original cost management idea,but also shift from production cost management to value chain cost management.We should also pay attention to the enterprises in the external value chain and extend the scope of cost management to the cost management in the whole value chain related to the enterprise.This paper taking XL iron and steel company as the research object,introduces the existing circumstances of production and management situation of XL iron and steel company and the existing problems in cost management,and uses cost management optimization tool to improve the internal management level.Through the cooperation with external value chain suppliers and sellers,the application of value chain cost management in the external value chain makes every link related to the enterprise become the link for the enterprise to reduce costs and increase profits.Through value chain analysis and effective management of relevant links in the value chain,enterprises can ameliorate the level of cost management,meliorate the efficiency of resource utilizing in the entire value chain,and ultimately achieve the cost reduction and efficiency increase of enterprises.Based on the research results at home and abroad,firstly,this paper summarizes the theory of value chain and cost management theory based on value chain,expounds the meaning,classification and characteristics of value chain cost management,analyzes the advantages of value chain cost management,and lays a foundation for the construction of value chain cost management system.Secondly,the analysis found that XL steel company has problems such as high procurement cost,backward production cost accounting method,unreasonable overhead allocation,and lack of value chain cost management concept.This paper analyzes the current situation of cost management of XL steel company from the perspective of value chain,and studies the value activities of XL steel company.Finally,based on the value chain cost management optimization measures are put forward,the method applied in the productionprocess optimization of cost accounting method,using the model of economic batch order optimize purchasing process and strengthen the understanding and cooperation with the external value chain upstream and downstream enterprises,improve the company value,external value chain and value chain cost management guarantee measures are put forward.The cost management based on the value chain improves the existing problems in the cost management of XL steel company,reduces the total cost of the enterprise,improves the competitiveness of the enterprise,and has certain reference value for other domestic steel enterprises.