Supply Chain Cost Management Integration

With the globalization, the market moves faster and faster under the global competition pressure. Single enterprise can't face the steps of market moving with single enterprise resource. Under the background, the vertical management model is changed and gradually substituted by the horizontal management model. Supply chain management is an example of these models. In 21 century, the competition is not among the enterprises, but among the different supply chains. Supply chain cost management is very important and difficult among the study of supply chain management. There are four headings for supply chain cost management, but this article focuses in the method of supply chain cost management.In this article, according to the characters of supply chain, the author makes research on supply chain cost management from the accounting viewpoint. Combined with the idea of target cost management and activity-based cost management, the author brings out a thinking and designs a system which faces the whole process of the supply chain. Target cost management, activity-based cost management, value engineering and value chain analysis are common methods. They all have one's own advantage and limitation. The system which includes target cost management and activity-based cost management is designed on the basis of researching the difference and commonness of two methods. At the same time, value engineering and value chain analysis are added to the system so that the system is more perfect. At the end of this article, author discusses how to carry out the system and pay attention to introduce the calculation of current cost.