Research On Optimizing Supply Chain Strategic Management By Means Of EVA

A company's competition advantage lies in the superiority in cost or difference. By carrying out Supply Chain Management, which emphasizes on the cooperation between the trade companions, the enterprise can supply customers with the products or service of less cost and more value. So recently Supply Chain Management becomes more and more popular in international enterprise management.This paper introduces Economic Value Added (EVA)which can be used to indicate the value that an organization has created for its stakeholders into Supply Chain Strategic Management and explains how to apply it to optimizing SCM from its three aspects, such as Purchase Management, Internal Integration Strategy and Demand Delivery Strategy. It discusses in details the optimization on the realization of the pull by customer demand involved in Demand Delivery Strategy and the push by business process involved in Internal Integration Strategy.In chapter 1 the paper explains the significance of the research on this subject. In chapter 2 it introduces the background of application and the basic principles of SCM. In chapter 3 this paper analyzes the origin and conception of Economic Value Added. What should be mentioned is that it discusses the application and implementation of EVA in an enterprise. In chapter 4 how to apply EVA to optimizing SCM is discussed in details. At last this paper analyzes a case related to the subject.The enterprise, and even the whole supply chain can gain the Competition Advantage by means of the application of EVA to SCM, which can accelerate the cash flow, reduce the cost of capital and improve the efficiency of SCM.