Research On Inter-organizational Cost Management Method Based On Supply Chain

In the new economic era that information and network technology are highlydeveloped, the environment outside the company became highly uncertain. On their own,companies will be difficult to gain a foothold in the market. More and more companiesrecognize that competition on the basis of cooperation can be conducive to the long-termsurvival and development of companies. Companies began to focus on the entire supplychain to seek win-win cooperation with upstream suppliers and downstream vendors. Somany inter-organizational forms of business organizations get rapid development.Enterprise value creation transforms gradually from the division of labor within theorganization to the division of labor on the cross-organizational supply chain.The profound changes of the organizational environment require constant innovationand development of the theory and practice of cost management so as to meet therequirements of the organization management in the new environment and enhance thecompetitive advantage of company. The traditional cost management methods concernonly the internal company, or only the production process, which makes it difficult to applyto the cost management of the cross-organizational supply chain. Therefore, it’s imperativeto develop the research of the cost management method based on the organizations.This paper is a normative research. By expounding the basic concepts and relatedbasic theory of inter-organizational cost management, this paper intents to build aninter-organizational cost management system. The system includes four modules: thepremise of inter-organizational cost management; the cost accounting basis ofinter-organizational cost; the cost constraints mechanism of inter-organizational cost andthe cooperative protection mechanism of inter-organizational cost management. Only a setof cost management is not enough, this paper also designs the structure and arrange theinstitution of organization relationship to associate with the cost management in order tomake it really implemented. The structure design and institutional arrangements mainlyinclude role location; the agreement contract design; information sharing and coordinationagency construction. Finally, the paper takes the cooperation between U.S. Auto Companyand its key suppliers as an example to illustrate the application of the inter-organizational cost management.