Study On Cost Management In Supply Chains

Supply chain management(SCM) is the product of development of social economics.Cost management in supply chains is more important content of SCM.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.This article introduces the theory of Cost Management in Supply Chains,and studies the features of Supply Chains and the demands of its cost management. According to this,it chooses 2 cost management methods:Target Cost and Activate-Based Costing,to manage the cost in the Supply Chains and try to explain their rationality on theory.Establish cost management system which is combined by cost calculate system and cost control system,give an example to show this system. Lastly pay attention to the profit distribution between different supply chain corporations and optimize supply chain process.Supply Chain Management is a key factor for improving enterprise benefit and for attain companies' goal.Effective Supply chain management is helpful to strengthen ability to compete,improve service and enhance profit.As an effective management model adapted to the new competitive environment,supply chain management is gradually applied in practice management,the author believes that the study of supply chain cost management will not only in theory but also in practice promote the development of modern cost management.