The Research Of Supply Chain Cost Control For Dairy Company A

In21st century, with the trend of economic globalization, the competition became much more fierceramong companies. The development of society and technology, Company must conduct cost control fromthe angle of the supply chain on the basis of the internal cost control, whose space has been narrowingdown. Cost control based on supply chain management is a new approach and thinking of company’smanagement, and an adjustment of the traditional cost control to the environment of the social competition.The author conduct a research on the dairy company A in the view of supply chain, to do a fieldworkof the supply chain’s structure and company’s cost, raise realistic issues the target company exists,construct and optimize a supply chain cost control model according to the actual situation. The purpose ofthis study is to give a fresh case which provide a reference for the similar work of cost control in the futureby the fieldwork in this thesis. This thesis consists of the following sections:First, as a target company, we analyze the features of A’s whole cost construction, find the problems insupply chain cost control and propose the possible reasons. The main problem during A’s cost control lie inthe higher cost of procurement, transaction, out of stock, inventory and sale, which make against the marketcompetition. The current cost control focuses only on production but not do a comprehensive consideration,general lack of awareness of cost control staff, lack of trust among supply chain partners, and the lack of aunified reasonable performance evaluation and incentive systems.Second, a supply-chain-cost-control model of company A will be constructed. using the method oftarget cost control and the method of activity-based costing, and optimized by applying function formulaaccording to the relationship between independent variables and the dependent variable in the model. Thepurpose of optimizing is to make the model more realistic considering the supply, production and sale.Third, we will make a supply chain cost control with the example of one product of company A, thissupply chain cost control model will be applied. Measures will be taken in controlling upstream cost,company internal cost and downstream cost according to the actual situation, and a quantitative analysis ofthe result of supply chain cost control of some one product will be made in using mathematical models. Themathematical models are built based on the basic model, and numerical values of every project cost in production are put into it to get the contribution rate for company benefits. The result of benefit evaluationtells us: cost reduction of each link in the chain will have obvious effect on the improvement of overallbenefits.