On The Cost Of Building A Supply Chain Management System

The theory of Supply Chains Management is put forward because of the fast changing environment and huge competition stress. With this theory, people feel that the competition is not just limited among companies and has been developed among Supply Chains. So, it's very important to strengthen the Management of Supply Chains. Only to do this, Supply Chains can reduce the products' cost as many as possible, and then become more competitive.But the research on this field is not enough. Until now, there is not an authoritative system of the Cost Management in Supply Chains. This research will do something about this.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 3 cost management methods: Target Cost, Value-Chain Analysis and Activate-Based Costing, to manage the cost in the Supply Chains and try to construct a Cost Management System of Supply Chains; it also proves its feasibility theoretically. Meanwhile, this research discusses and analyzes the principles, features and their suitableness to Supply Chains, and explains specifically how to carry out them in the Cost Management in Supply Chains. Finally, this research constructs a Cost Management System of Supply Chains which consists of Target Cost, Value-Chain Analysis and Activate-Based Costing.