A Study On Supply Chain Cost Management Optimization Of P Company

As the upstream of automobile industry chain, auto parts is one an important component of automobile supply chain. So cost reduction of automobile parts is a significant factor in the competitive power of automobile industry in China. However, the traditional cost control methods have obvious drawbacks. Effective cost control is limited within the enterprise instead of a high efficiency cost control based on the information sharing and cooperation between upstream suppliers and downstream distributors. Supply chain cost management extended the traditional cost control theory and methods within enterprise to the whole supply chain, which is an adaptive transform of traditional cost management rely to the changes of competition environment.P company is an auto parts production enterprise and is currently in the stable growth period after operation for many years. Based on the supply chain management, this paper has deeply studied the supply chain cost management of P company. First of all, the paper introduced some basic concept and related theory of supply chain and analyzed the limitation of the traditional cost management theory. Then the theory of supply chain cost management has been set up. According to the analysis of industry status and the present situation of P company, problems in the supply chain cost management of P company have been pointed out from the aspects of procurement, inventory and logistics. And the reasons the problems have been parsed from many angels. Combined with the idea of supply chain cost optimization, cost optimization measures have been put forwards from four aspects: perfect completion of internal cost management system, the establishment of the third party logistics, standard management of workshop production process and the implementation of activity-based costing. In the last, this paper has came up with the related security measures during the implementation of optimization methods. The related security measures mainly includes the reconstruction of tissue structure, the establishment of information sharing platform and the establishment of supply chain management team.Combining the actual operating conditions of P company, this paper have put forwards some supply chain cost optimization methods, which aimed at making some valuable suggestions on the company's supply cost management to enhance its competitiveness ana providing a reference for the auto parts industry.