The Research On Optimization Of JM Supermarket Chains' Value Chain Cost Management

Under the environment of continuously stable development of market economy, the competition of scale-expanding Chinese retail enterprises has become fierce, with the multinational retail chains crowding into China, which forces our retail enterprises to re-examine their cost management mode to maintain and enhance the core competitiveness. However, at present, with rigid cost management method and narrow scope of cost management, Chinese retail enterprises lack the thought of value chain cost management, which makes our retail enterprises passive in the long-term market competition, because of inability to adapt to the major characteristics of retail enterprises, such as large proportion of period expense and flexible business processes. So, whether retail enterprises reengineer resources and costs of the whole value chain as the core, through establishing the long-term mutually beneficial strategic relationship with suppliers, has become the bottleneck of their long-term stable development.On the basis of reviewing the theory of value chain management, value chain cost management and value chain cost management of retail enterprises, the paper selected the large local chain retail enterprise, JM supermarket chains, and elaborated the general situation and the existing mode of value chain cost management. The paper also put forward the current problems existing in the mode, such as unscientific value chain analysis, high cost of suppliers, the cost information distortion and so much recessive cost, and analyzed the causes. Aiming at the current problems, the paper optimized the existing mode by certain ways, such as analyzing value chain and value chain cost, setting up the value chain of strategic alliance, strengthening supplier management and introducing of homework cost method and target cost method. Finally, the paper advised to set up the system of value chain cost protection measures, including remodeling and optimization of the organizational structure, strengthening the management of internal administrative system and setting up the information sharing platform. Linking theory with practice, the paper offered suggestions to JM supermarket chains' value cost management in different ways, which has a certain practical guiding significance to keep the cost advantage of JM supermarket chains and retail enterprises.