On Cost Control Of Jidong Cement Based On Value Chain

Cement industry as the entry threshold is low,the development of a relatively long history of the industry,the industry competition is particularly fierce.But with the "Industry 4.0",the need for national industrial upgrading and environmental protection,cement manufacturing industry and other large energy consumption capacity will be constantly compressed.So in such a fierce competitive environment how to improve production efficiency,reducing costs is crucial for businesses.However,the traditional cost control method used by enterprises in the Enterprise's design,procurement,production,sales,after-sales and other aspects of the cost control isolated,so that the enterprise's cost control is not coherent.It cannot be from the entire life cycle of the product cost control and adapt to the needs of the current rapid development of enterprises.Therefore,a more scientific cost control method-based on the value chain of the cost control method began to appear and was actually applied in the enterprise.The cost control method based on value chain takes the core link of enterprise cost control as the forerunner,and carries on the cost control to each link in the value chain,in order to achieve the goal of integrating and optimizing the related resources in the value chain,and realize the value added of the enterprise's overall value.This paper selects Jidong Cement as the case study company,first gives a brief introduction to the related theory of value chain cost control.Secondly decomposes the upstream,midstream and downstream value chain and value chain cost composition of Jidong cement.We finds that the upstream value chain of Jidong cement includes the purchasing cost in the supplier value chain.The midstream value chain includes phase cost,production costs and management costs during the production phase,and analysis and comparison of cost control for competitors in the same industry,and downstream value chains include sales costs,transportation costs,advertising costs,etc.Then the present situation of cost control of Jidong cement value chain is analyzed,and it is concluded that there are high purchasing price,strong bargaining ability of suppliers,complicated purchasing procedure and low efficiency in the upstream value chain of Jidong cement.There are insufficient investment in midstream value chain,insufficient independent ability,easy aging of production equipment,wrong peak production shortens the production cycle and has defects in the cost analysis of competitor value chain.There are some problems in the downstream value chain,such as unreasonable inventory management and excessive transportation and handling cost.Finally,aiming at these problems,this paper puts forward the optimization measures from three aspects of upstream,midstream and downstream.The upstream is mainly to optimize the selection of suppliers and procurement structure and efficiency.The midstream is mainly to make the enterprise's investment,equipment production efficiency,strengthen the value chain cost control analysis of competitors to propose optimization strategy.The downstream is from the customer,the optimization strategy is put forward in the aspects of sales channel,inventory management and strategic layout.With a view to the Jidong cement and other cement manufacturing enterprises and even the traditional manufacturing industry as a whole to provide some value chain-based cost control optimization measures.Through the research on cost control of Jidong cement based on value chain,this paper hopes to provide a more scientific cost control method for traditional manufacturing industry.Comprehensively analyze the cost control of enterprises from upstream,midstream and downstream value chains,it will expand the link of enterprise cost control,and make the enterprise no longer limited to the cost control of production link.In order to reduce the total cost of products from design to final sale,enhance the cost control ability of enterprises and core competitiveness,to contribute to the sustainable development of enterprises,while promoting the reform of traditional manufacturing cost control.