Research On Strategic Cost Management

The global competition is increasingly vigorous. This kind of competition is the competition of cost management to a large extent for the enterprises. Along with the economic system transformation and the rapid development of electronic information technology, business environment faced by a lot of changes in the competition between enterprises has become increasingly fierce. The economic environment changes driving the development of management science, conform to this development, strategic management came into being. The cost is an issue affecting the competitiveness of enterprises size, survival and development potential, the important issue of whether the development of modern enterprise cost control methods is necessary to quickly resolve problems. Under the new regulatory environment, the traditional cost management due to their own shortcomings difficult to adapt to the needs of strategic management, managers cannot derive the cost improvement opportunities, making cost control weakening. The most effective way to change this state is from a strategic perspective to understand the cost, the use of SCM methods to improve the level of cost management of our enterprises, increase their competitiveness and seek enterprise lasting competitive advantage. This kind of cost management method was applied by some enterprises abroad, but in our country we are still in the stage of academic research.The strategic cost management is a managing activity which can provide the useful cost information that strategic decision-making needed, and can point out the homologous cost management in different enterprise strategy in order to gain and keep the competitive advantage for a long time. The specialized method in its application provides the analysis data between business enterprise and its rivals, helping the governor evaluate the business enterprise strategy and create competitive advantage, which make the business enterprise adapt to the exterior environment effectively. Strategic cost management pays attention to the enterprises for long-term, the overall situation factor and the strategic cost drivers. It makes use of strategic cost management tool to manage the cost so as to fit for the requirements of strategy.In this paper, the basic theory of SCM as a starting point to introduce the meaning of SCM, characteristics, principles, models and basic content; the use of SCM approach, pointing out that the current implementation of SCM of Chinese enterprises face difficulties and the existence of the problems, analyze the reasons for the existence of many problems and put forward the effective implementation of SCM solutions. Chinese enterprises should establish a SCM concepts, the correct treatment of foreign SCM experience, and constantly review and improve our SCM experience, effective use of SCM analysis tools, and strengthen enterprise information management, businesses can use to guide strategic cost management system. The article also through the application of strategic cost management, business case analysis derived from a strategic height enterprises must carry out cost management, through the use of a range of SCM approach, seeking to maximize cost-effectiveness of enterprise sustainable way. The completion of paper will help to solve the SCM in the application of China's enterprises will make the cost of China's backward management generated a fundamental turning point in the implementation of SCM company has a strong practical significance.