Manufacturing Cost Management Research Based On The Supply Chain

With the enterprise competition increasing and the customers demands varying, traditional vertical integration strategy has already been unable to quickly respond to market changes, which causing that enterprises are facing the survival crisis. Thus that, horizontal integration management mode has been adopted by more and more companies. To keep the core competitiveness of enterprise’s survival and development, merely relying on internal optimization and utilization of resources is not enough. And it needs to extend the perspective of cost management to external to find new cost breakthrough. In this context, the cost management of supply chain starts coming into view. Being a kind of cross-organizational cost management, supply chain cost management puts ideas and methods from internal to the whole supply chain of the enterprise. It’s a transform of traditional cost management to adapt to the current competition environment and it’s an inevitable trend in the development of modern cost management. In the supply chain, each enterprise node is a relatively independent economic subject. There are widespread information asymmetry and conflicts of interest among them, and cooperative relations among enterprises are weak, which affected the supply chain cost management a lot. Analysis and control of supply chain cost management refer to the whole cost of the supply chain. While the traditional cost management method is mainly focused on the internal cost accounting, rather than from the perspective of supply chain to manage all aspects of the cost, resulting that the effect of cost down is not that significant.This paper is given priority to with the case study method, adopting the interview method, field observation and literature research. Supply chain cost management is studied from the following several aspects:(1) The research background, research significance, research status at home and abroad is first introduced in this paper, and the main content of this article is summarized as well;(2) The basic theory of supply chain cost management and the main supply chain cost management methods have been studied, such as target cost method, activity based costing, and this paper expounds the current status of Chinese manufacturing enterprise supply chain cost management;(3) Based on the study of the basic theory and main methods of the supply chain cost management, the paper studies the content of supply chain cost management-cost of sales, manufacturing costs, supply costs, and studies the guarantee mechanism of supply chain cost management, including the trust mechanism, information sharing mechanism, incentive mechanism and the income distribution mechanism;(4) Combining with the SAN Steel Group case study, through the analysis of the supply chain cost management status of SAN Steel Group, put forward the problems and suggestions of optimization;(5) Summarize the paper. In view of the supply chain cost management helps to reduce the final cost, save the social wealth and it has gradually drawn widely attention in the management practice, I believe that the supply chain cost management in practice can constantly promote the development of modern enterprise cost management.