Study On Activity-based Cost Management Of The Enterprise In Supply Chains

For the cost management of the enterprise, there is no lack of cost management theoryand method, the key is how to make the cost management method applied to supply chainmanagement. It takes advantage of supply chain management, the enterprise cost managementdemands the extension of the internal-oriented cost management to cover the whole supplychain, through comprehensive cost management from the upstream supplier to thedownstream consumer to reduce the total cost of the supply chain. It can cause the enterpriseobtain to more profits than internal cost control of the single enterprise, and maintain thecompetitive advantage of enterprise. The dissertation puts forward that the activity-basedsupply chain cost management is a new theory and method of the cost management. It is notonly integrate and optimize the internal product research and development design, production,transportation, sales and storage process, but also can coordinate the relationship between theenterprises on the supply chain. It can establish a strategic alliance with other cooperativeenterprises to achieve information sharing, risk sharing and benefit sharing. Theactivity-based supply chain cost management is a kind of trans-enterprise cost management. Itis an evolution in traditional cost accounting method to adjust to the market environment andis necessarily the direction of future development of modern cost management.This dissertation analyzes the activity-based supply chain cost managementcharacteristics, significance, as well as the necessity and applicability of the enterprise insupply chain based on activity-based cost management. It’s necessary for cost management insupply chains to construct securing mechanism. While trust mechanism, information sharingmechanism, incentive mechanism and income assignment mechanism provide momentum tomanage cost in activity-based supply chain cost management, and coordinate the partnershipbetween the member enterprises on the supply chain.This dissertation builds a activity-based supply chain cost management model. It uses theoperating costs of the supply chain management of corporate external suppliers, vendors,customers, and internal production process costing and management, dynamic tracking thecost of the entire supply chain formation and accumulation process, while Activity-basedcosting (ABC) which can offer more accurate cost information has received more and moreattentions.“Resources–Motivation–Job” carried out a detailed cost analysis based on thedynamic of the entire supply chain analysis and job analysis. Finally, take the IKEA Group asan example, it analyzes the effect of operating cost management of the enterprise and beyond, and shows the operating costs of the supply chain management in the enterprise application.