A Study On Supply Chain Cost Optimization Of J Company

Under the circumstances that the market economy changes rapidly and the global economy develop wildly, the enterprises are now facing the fierce competition. It makes the industry enter an era of meager profit, thus, cost control is of great significance for the enterprises’ survival. Traditional cost control method has obvious flaws:it only limited to the cost of the enterprise internal control, but not combined with upstream suppliers and downstream distributors’ situation for cost management. The management for the cost supply chain, as an important part of the supply chain management, is not only a modern management technique or idea, but also a systematic, agile advanced cost management philosophy. However, supply chain cost management will expand to the entire supply chain, which is an adaptation to environmental changes. In order to meet the need for competition, the enterprise need to find a more effective cost control methods. The management of the supply chain cost, is an inevitable trend. This will become a new breakthrough for China’s enterprises to obtain competitive advantages.Stands on the shoulders of the pre-scholars’, the article firstly stated some theories related to the traditional cost management, the theory of supply chain and supply chain cost management. Then the article began to describe the current situation of the cable industry where the J company in China. Briefly described the supply chain cost management problems of the J Company, the article analyzed the causes of problems from multiple perspectives. This paper uses a combination of theory and practical business methods, from the perspective of supply chain cost control to study J’s cost management. Finally, based on the present stage for cost control of J Company, we gave some suggestions, meanwhile, we figured out that it is better to set a evaluation system, which leads to overall analysis to the performance for the cost control. These optimized approach could be realize the information sharing, win-win cooperation, process optimization and so on for J Company. Finally, it will be improve the core competence of the corporation and help the J company research to develop more maturely and healthily.