Study On The Strategic Cost Management Of CY Company Based On Value Chain

In recent years,with the rapid development of the industrial internet,big data,and intelligent manufacturing,the production methods and organizational forms of traditional manufacturing industries are gradually being changed,while various emerging industries have emerged,bringing more vitality to the automation instrument and control system market,and the market space has been further expanded.In this situation,the automatic control system market has entered a large number of new competitors,and foreign and domestic enterprises are scrambling for the commanding heights of a new round of competition by adjusting strategies,increasing research and development,and improving production capacity.The market competition is becoming increasingly fierce.In this context,the importance of cost management is self-evident,but traditional cost management cannot match the development needs of enterprises.Under the new situation,cost management must be combined with enterprise strategy,and strategic cost management has been formed by expanding cost management in a strategic sense.Compared to traditional cost management,strategic cost management is more holistic,long-term,and forward-looking.The goal of implementing strategic cost management is not only to reduce costs,but also to coordinate with the competitive strategy of the enterprise to maintain its competitive advantage.Value chain is one of the basic analytical tools for strategic cost management.By analyzing the cost inputs in each link of the value chain,the focus of enterprise cost management is clearly defined from a strategic perspective,thereby optimizing the value chain and enhancing the core competitiveness of the enterprise.This article takes CY Company,an industrial automation system device manufacturing enterprise,as the case study object,and conducts a research on the strategic cost management of CY Company based on the value chain.After a detailed analysis of the strategic positioning,value chain,and strategic cost drivers,it is concluded that CY Company currently has shortcomings in strategic cost management in terms of internal,vertical,horizontal value chains,and strategic cost drivers,For example,in the internal value chain management,the personnel structure and salary in the human resource management process need to be adjusted,and the R&D design process needs to increase funding and high-level R&D personnel investment;In the company’s vertical value chain management,there are more related party transactions between upstream suppliers than other companies in the same industry,and the downstream customer credit rating system is not perfect;In the company’s horizontal value chain management,compared to competitors,CY Company currently has insufficient R&D investment;In the analysis of strategic cost drivers,there are issues such as insufficient links between value chains,lack of communication among value chains,and weak awareness of strategic cost management among employees.Finally,based on the problems found,this paper proposes a strategic cost management optimization plan for CY Company from the perspective of internal,vertical,horizontal value chains,and strategic cost drivers,hoping to provide some help for the implementation and sustainable development of strategic cost management for CY Company.