Research On The Strategic Cost Management Of The Supply Chain

Under the background of globalization, fast changing market and huge competition pressure, the competition does not just exist among enterprises, but is extended to supply chains. Confronting with this situation, more and more enterprises pay attention to the supply chain management and the supply chain cost management, and want to gain competitive advantage by effective cost management. As the conventional costing system is no longer suitable, this article suggests the strategic cost management for the supply chain cost management. We will use the strategic cost management model of Shank to analyze the supply chain cost, which includes three main aspects: competitive advantage analysis, value chain analysis, cost driver analysis.Though the model of Shank is the most perfect among all the foreign models, it doesn't involve the combination of the three analytical tools with detailed cost accounting method and cost control method. So there are difficulties in the specific operation of the strategic cost management. In order to practice effective strategic cost management in the supply chain, we must choose the suitable method, which decides the effect of cost management. On the basis of studying the features of the supply chain and the demands of its cost management, we choose two methods: target cost management and activity-based cost management, and systemically analyze the applicability in supply chain cost management. These two modern methods are suitable for supply chain cost management, and they both have their own advantages and limitations. So, by combining the target cost management and activity-based cost management, this article designs a cost management model which faces the whole process of the supply chain. At the same time, competitive advantage analysis, value chain analysis and cost driver analysis are added to the model so that the model is more perfect.