The Application Of Value Chain Cost Management Method In The Foreign Trade Subcontract Producer

With the development of economic environment, Knowledge Economy and Internet Economy, the human society has become informational and technical, a big diversification has been made in company management, as well as competition becomes intense in worldwide, which has made influence on Foreign trade subcontract manufaction. China, which has been called World Factory, has lost its advantage in international cooperation supply chain, and the inconsistency of improving customer requirement and improvement of Foreign trade subcontract Producer has become obviously. To accommodate intensely competition, the company must change its concept, search suitable way of Cost Management, to improve its core level, for the continuance development of the company.The traditional way of Cost Management can’t satisfied with customer’s demand in new environment, and can’t analyze enterprise’s behavior completely, which displayed its disadvantage. The theory of Value Chain which porter has put forward is the important tool of gain an edge of Cost, which has been paid attention by enterprises. To get advantage of development, the company has to manage Value Chain all around, for maximize the value of company. The Value Chain Analysis is a new way of management, which has break through the limitation of traditional way of Cost Management, whose cut-in point is the life-circle of construction projects, which has made the company considered the cost management in wider world, it concerned on the lost of cost as well as research, purchase manufacture and waste disposal, it concerned on the internal Cost of value chain as well as external industry environment and the impact of access of supplier, merchant, customers.As the way of Value management, the theory of Value Chain has made base of refactoring of company’s cost management. The aim of this article is with the analyses of the Value Chain Theory and Cost Management, to see the cost in Foreign trade subcontract Producer, to make a new way of Cost Management, to assist company with Cost Management and Security, to provide way of development for Foreign Trade subcontract Producer, to maximize the company’s value, to increase competition level.The article analyses theory with practice, based on the theory of Value Chain, firstly analyses global investigation about Chain of Value, secondly build the frame of reference from five aspect:the Value Chain Cost Management’s concept, task, aim, principle and process. From comparing the Value Chain Cost Management and the traditional Cost Management, the article describe a brave foreground of the implement of Value Chain Cost Management Method in the Foreign trade subcontract Producer.