The Design Of Cost Control Plan Of Y Company Based On Value Chain Theory

With the process of rapid development of modern economy and the acceleration of economic globalization, the competitive environment of manufacturing enterprises of our country has generated new features. The competitive products of manufacturing industries have become more and more convergent. And the competition among manufacturing enterprises has been increasingly fierce. The attendant consequence is that the profit decreased year by year. Therefore, the manufacturing companies are much more dependent on the source of the profits for the company’s cost control. However, the traditional method of cost control has experienced a bottleneck, and the margins released by traditional cost control methods are very small. Therefore, this paper, based on the value chain perspective, is to explore the methods of the cost of manufacturing enterprises.The value chain is an open chain, unlike the traditional perspective of the enterprises’ cost control, the cost range based on the value chain has been expanded. It is not limited to manufacturing sectors, but includes research and design, material procurement, manufacturing, sales and the delivery to the customer. The cost of value chain includes all the consumption of resources during the circulation of the whole chain. This paper will be based on the perspective of the value chain, and analyze the specific manufacturing enterprises from three aspects of the value chain, which is called internal value chain, industry value chain and competitor value chain. Then, proceeding from the breakdown of the internal value chain, upstream suppliers’ value chain and downstream customers’ value chain, this paper will design a cost control plan of the specific manufacturing enterprise. The aim is to break through the existing traditional cost control methods, reduce the cost of companies radically and ultimately enhance the competitiveness of enterprises.