Research On Cost Management And Methodology Integration Oriented Supply Chains

In order to survive and grow in the market, a business must not only rely on the optimization and utilization of its internal resources, but also take full advantage of its external resources to respond immediately to market demands and practice supply chain management, part of which is supply chain cost managemen. As a kind of trans-organizational cost management, supply chain cost management demands the extension of the traditional internal-oriented cost management idea and methods to cover the whole supply chain. It is an evolution in traditional cost management to adjust to the changing competitive environment and is necessarily the direction of future development of modern cost management. Supply chain cost management is a very complicated systematic mechanism, involving every aspect of supply chain management, ranging from the constituting and accounting of supply chain cost, theory on supply chain cost management, logistical cost management, inter-organization cost management, network cost management, balancing and optimizing of supply chain cost, methods and integration of supply chain cost management to issues such as information sharing, distribution of profits and interests.From the view point of a business, this essay bases on customer requirement and takes oriented supply chain approach to study the cost management in supply chains at functional level and institutional level.This essay studies the cost management and integrating methods in supply chains at functional level, including: (1) On the basis of the foundational theory and methodology, this essay thinks that product supply chain cost management is in fact the cost management of product whole life cycle in the broad sense and the involvement of cooperative partners is needed particularly in the phase of product designing. It provides the means and methods in inter-organizational cost management and the corresponding types of partnership; (2) It designs a framework for supply chain cost management based on coordinating the core decision-making and the primary logistical costs in a supply chain is analyzed and studied according to this model and a joint management framework of supply chain logistical cost is constructed; (3) The nurturing of partnership requires that network cost should be taken into consideration and that a suitable partner should be selected. This essay raises that a suitable partner could be selected by applying Grey...