The Research Of HT-SHD Company's Supply Chain Alliance

As the differences between products become less evident while the competition between companies keeps booming, every company are now facing the same challenge: How to maintain the competitive advantages in the current cutting-throat market competition.Each company needs to adjust its operation strategy per the industry characteristic and its own development status. According to the theory of value chain, the competitive advantage of one company comes from the varied but disconnected activities within this company. All these activities will impact the operation cost and also leads to the differentiation of companies. For each value activity, its importance to the enterprise competence is decided by the percentage of company total cost and asset it occupies. The interface of different cost drivers factors in value activities may intensify or ease the cost advantages. The linkage between different activities helps the company to keep the competitive advantage. Thus, how to identify the linkage between different internal value activities and the linkage between company and itssupplies value chain is extremely important to the company.This article is trying to analysis the new Supply chain Alliance module established between two companies (HT and SHD) by the value chain theory. This introductory have made the synopsis to the background information and the research motive;The second chapter the introduces the concepts of the value chain theory and the procurement cost management;The third chapter analyses the HT Corporation's marketing theory;The fourth chapter analyses the SHD Corporation's value chain constitution of procurement.The fifth and sixth chapters analyse the reason of how the SHD corporation realizes enterprises's conpetitive advantage,through to procurement value chain's restructuring and cost driven factors's controlling. Finally, the article also highlights some issues which now still occur in HT-SHD purchasing system. We sincerely hope this article could inspire our domestic enterprises to optimize and control the purchasing process based on the theory of value chain.