Research On The Application Of Value Chain Cost Management In A Company

With the continuous opening of China’s economic market,the relationship between supply and demand of the market has become increasingly tight,and the current situation of the over-supply industry has led to a further squeeze in the market share and profit space of enterprises,especially for small and medium-sized enterprises.The survival and development of enterprises are facing unprecedented challenges.In the past,the traditional enterprise cost management mode was just to cut down the expenditure of the enterprise,but it could not keep the long-term competitive advantage though it increased the benefit of the enterprise for a short time.In the current era of economic globalization and information ecology,the long-term development of enterprises depends not only on their internal competitive advantages,but also on the market,industry and other external environments.It is also influenced by customers,suppliers and homogeneous enterprises.In this environment,the original management mode of the enterprise needs to change from its own cost control to the cost management of the whole value chain,and then realize the extension and expansion of the management mode from the inside to the outside.Finally realize the whole value chain enterprise cooperation win-win.This paper adopts the method of case study,field investigation and interview,aiming at the problems such as lack of overall consciousness,backward accounting method,insufficient material management and out-of-control of the period cost in the current cost management of Company A,and so on.This paper analyzes the causes of the increase in cost,and constructs the cost management framework of A company based on the value chain.On the basis of combining the advantages of target cost method and activity-based costing method,this paper puts forward the concurrent engineering based on the internal value chain and the external value chain.The internal value chain cost management scheme of rational procurement and high-level accounts receivable management and the importance of supplier selection and strategic cooperation to provide customers with all-round convenience The external value chain cost management scheme,and from the management concept,information system and human resources three aspects of the corresponding safeguard measures.The research in this paper provides a train of thought for the cost management of Company A,which is helpful to realize the cost reduction and increase efficiency,to improve the cost competitive advantage of the enterprise,and to provide reference for the cost management of the same type of automobile parts manufacturing enterprises.