The Research On Manufacture Enterprise Target Cost Management Based On Supply Chain

Along with the changes of the market environment and the development of global economic integration, competitions between manufacture enterprises become more and more intensive. In order to developing and maintaining its core competitiveness, manufacture enterprises have realized that they must not only rely on optimization and utilization of the internal resources, but also take full advantage of the external resources to respond immediately to market demands and practice supply chain management. Supply chain cost management is an important part of supply chain management. It demands the extension of the traditional internal-oriented cost management idea and methods to cover the whole supply chain. Supply chain cost management is an evolution in traditional environment and is necessarily the direction of future development of modem cost management. It will become a new breach to get the competitive superiority for manufacture enterprises.After analyzing the supply cost management and probing into the methods of cost management, suitable method of cost management can be found to build supply cost management system for manufacture enterprise as core enterprise. Then the whole supply cost can be controlled effectively and the prices of manufacture product can be low. This will allow manufacturers in competition with other firms in a dominant position.From the view point of the manufacture enterprises and aimed at lowing the sale price of the product, target cost is selected as the method for manufacture enterprises cost management after analyzing and comparing the target cost and activate-based cost. After that supply chain cost management system is built for manufacture enterprise as core enterprise. At last, for a manufacture enterprise producing desk as an example, target cost of the products and material is confirm after using method of target cost. The results show that the price of product can be low after using supply chain cost management. This will be great significance for product occupying a much broader market.