Study On Cost Management Of Huida Sanitary Ware Company Based On Value Chain

There are two ways for enterprises to increase profits.The first is open source,that is,market development.The second is to reduce expenditure,namely cost management.At present,the domestic sanitary ware market has entered the cruel stock market from the incremental market.In such a fierce market environment,the quality of cost management has become the key factor to determine whether the enterprise can survive.Excellent cost management also has an immediate effect on increasing profits.In recent years,under the influence of supply-side structural reform,real estate "mine explosion" event and energy consumption "dual control" policy,the market demand for sanitary ware has weakened significantly,while the price of raw materials and energy costs continue to rise,increasing the cost of sanitary ware enterprises,leading to a decline in the profit level of many sanitary ware enterprises.The traditional cost administration is limited to the production link inside the enterprise,but lacks of attention to the external and other links of the enterprise.Therefore,a more advanced cost management method is urgently needed in today’s auxiliary cost rising.Value chain cost management is a cost management method covering both internal and external enterprises,which can help enterprises realize the optimization of the whole process cost,so it is more suitable for the needs of enterprise strategic development.This paper uses literature review method,case study method and field research method to carry out research.The first chapter introduces the research background,purpose and significance of this paper,summarizes the advanced and typical theories of value chain cost management at home and abroad,gives a literature review,and then introduces the research methods and innovation points.The second chapter describes the value chain theory,cost management theory and value chain cost management theory related concepts,and the value chain cost management and traditional cost management comparative analysis.The third chapter introduces the development background of sanitary ware industry and the general situation of Huida Sanitary Ware Company.The fourth chapter introduces the current cost management status of Huida Sanitary Ware.Chapter five carries on the cost management of Huida Sanitary Ware Company based on the value chain.The sixth chapter puts forward the safeguard measures to implement the value chain cost management.The last chapter summarizes the conclusions and shortcomings of the research,and looks forward to the future.In this paper,Huida Sanitary Ware Company,an iconic enterprise in the sanitary ware industry,is selected as a case study.Through studying materials and field research,the current cost management status of the company is analyzed,and the problems existing in the internal and external cost management of the company are pointed out.Specifically,it includes unreasonable research and development structure,lack of short-term purchasing strategy,lack of cost management concept of workshop workers,huge sales input and unsatisfactory effect,imperfect supplier selection system,single incentive way of dealers,high customer maintenance cost,insufficient emphasis on competitors,etc.Then,it analyzes cost management from the perspective of value chain.It puts forward some suggestions,such as optimizing the research structure,adopting comprehensive purchasing strategy,deepening the concept of lean production,strengthening the online channel laying,establishing the supplier selection system of value chain,adopting the multi-channel distributor incentive method,analyzing the profitability of downstream customers,learning from the excellent management experience of competitors,etc.Finally,three safeguard measures are put forward,namely,the concept of cost management,the system of cost management and the alliance of cost management.