Research On Strategic Cost Management Of Sf Holdings Based On Value Chain

As the constant development of the commodity economy,the advancement of the e-business industry has begun to go deep into all areas of the domestic economy,under the circumstance of economic globalization and supply-side reform,the diversification of the market and the homogeneous operation of commodities are increasingly affecting the survival and development of logistics enterprises.At the same time,the growth pace of the logistics industry has slowed down,and the competition within companies has become more and more tense.If logistics enterprises decide to perform preeminently among lots of enterprises,they must focus on cost control.The short-term cost compression is the key to a large amount of traditional cost management pattern.In the meanwhile it is not capable of meeting the needs of development of enterprises in the long run.strategic cost management stands from a macro perspective,controls the costs invested in operations within a reasonable and minimized range,and pays more attention to the realization of long-term strategic goals of enterprises.The core of strategic cost management is value chain management,which systematically analyzes the cost management of enterprises from three dimensions: within the company,the industry as a whole and competitors,so that enterprises can better understand their own cost management level,adjust shortcomings in time,and grasp the development direction.As a leading local express delivery enterprise in China,SF Holding’s study of its strategic cost management level can provide good reference and reference for plenty of logistics companies.As a result,this thesis takes SF Holding as the object of the research,The author made a integration of both domestic and overseas references,In the meanwhile the value chain as well as the strategic cost management theory are stated in depth,In addition the present situation of strategic cost management in SF is at length discussed based on the value chain.literature research and case analysis,were used in this thesis.A short introduction of the company,to be exact including its organization framework along with the present status quo of cost management.At the same time the analysis of the value chain was exhaustively developed,the Porter’s five forces analysis along with the SWOT pattern were used to confirm its strategic position boundary and the strategic cost drivers.This thesis pay close attention to the problems and what gives rise to it.On account of strategic cost management of SF Holding according to the value chain.It shows that the importance of hidden costs is ignored in the process of strategic cost management of SF Holding,resulting in a large increase in outsourcing costs.Incomplete transportation networks,resulting in higher transportation costs;The imperfect talent training mechanism,giving rise to the labor costs decreases in a fast speed;The cost feedback mechanism is unreasonable;Supplier collaboration relationships fluctuate greatly,customer loyalty is not high,the competition is more and more competitive,meanwhile it is hard to gain extra profit.On account of all the issues discussed corresponding improvement suggestions are proposed.The activity cost method is introduced to reasonably evaluate the outsourcing cost;Build an integrated transportation network to reduce transportation costs;Introduce talent management mechanism and rationally allocate human resources;Take good advantage of the Balanced Scorecard to build a sound cost management evaluation network;Strengthen collaboration with existing suppliers,focus on customer needs,learn from competitors’ experience,and strive to expand overseas markets.Finally,the full text is summarized and the prospects are proposed.