Research On Cost Control Of A Furniture Company Based On Supply Chain

With the rapid development of China's economy,the competition among the furniture manufacture companies has been increasingly fierce,and more attention has been paid on supply chain cost management.On the basis of predecessors' research results,with the aid of supply chain management's and cost management's related theories,this article discusses the main methods of cost control.Supply chain cost management by contacting enterprise upstream suppliers and downstream distributors,obtain accurate information of product costs,and do activity cost accounting.Combining with the target cost method,the supply operation link will closely integrate with the needs of customers,keep on the management and control of enterprise costs,in order to increase the profit of enterprise,enhance competitiveness,and gain more market share.Based on this,the paper constructs a cost control system of the combination of target costing and activity based costing.From the view of supply chain,this paper describes the furniture enterprise supply chain.From the perspective of cost concept,accounting method and cost control,it discusses the prese nt situation of furniture manufacturing enterprise supply chain cost management.A furniture company as the core enterprise,on-the-spot investigation of the target enterprise supply chain structure and the cost,analysis the overall cost structure characteristic.According to A company's problems in the process of the supply chain cost management:suppliers' selection criteria is single,low purchasing modularity,low production efficiency,high enterprise internal management cost and high external transaction cost and so on.With the further discuss and analysis from three aspects which are supply chain procurement management,supply chain operations management,supply chain transaction cost,points out the reasons are these:the purchase price is high,the cycle is long,the degree of informatization is low,the partition of personnel responsibility is not clear,and the platform fee is unreasonable,etc.By analyzing the supply chain process of A company,confirm the resources,recognize the major assignments,identify the resource drivers,set up the operation costs of library,identify the activity driver,assign costs to cost objects,account out the cost of supply chain operations,then formulate and decompose the target costs,and compare with the activity costs.According to the difference,the specific cost control strategies are proposed as follows from direct costs,operating costs,transaction costs:(1)Improve the procurement mechanism,establish the supplier management principle,strengthen the technology of purchase cost control;(2)Control the logistics costs,mass customization instead of small batch production.(3)Promote "OTO" business model to reduce the marketing costs,eliminate the hidden costs within the enterprise.