Research On Cost Control Of M Company From The Perspective Of Value Chain

Since entering the "Thirteenth Five-Year Plan",the state has tightened its policies on safe production,environmental protection,energy conservation and emission reduction,and the pressure on China's manufacturing industry has increased.The wear-resistant materials industry is a new type of industry.Despite the rapid development of metallurgical mines,cement and thermal power generation industry,it brings business opportunities to the wear-resistant materials industry.However,the prices of raw materials for wear-resistant products have risen,labor costs have increased year by year,and the rapid industry competition and the overdue accounts receivable have caused difficulties for the business of the wear-resistant materials industry.Strengthening the cost control of enterprises has become the key to the development of enterprises in the wear-resistant materials industry.The traditional cost control method is mainly aimed at the internal cost control of the enterprise,lacking the thinking of strategic management.The cost control from the perspective of the value chain expands the cost of a single one-sided control to cover the cost of all aspects encountered by the enterprise in the market,therefore the cost get more effective control.M company is the first-class wear-resistant material manufacturer in China and a typical representative of the wear-resistant industry.In recent years,with the wear-resistant materials industry entering a trough period,M company's sales growth has slowed down,the benefits have fallen sharply,and strengthening cost control has become an important task for the development of M company.Based on the value chain and cost control theory,this paper analyzes the current situation of M company's cost control,finds out the problems in cost control,and proposes that M company should strengthen cooperation with suppliers and customers from the perspective of value chain,eliminate or reduce non-value-added operations in production,in order to break through the original cost control limitations,control enterprise costs from the source,improve the market competitiveness of M company,and also have reference for other wear-resistant materials industry enterprises.