Using TOC Theory Analysis Supply Chain Cost Management Of Small And Medium-Sized Manufacturing Enterprises

Since the year of reform and opening up,small and medium-sized manufacturing enterprises have developed,the number of companies is very much,but also employ a large number of employees,is an important force of China’s economic development and employment.Therefore,government support has also been given to encourage innovation and entrepreneurship.However,the small and medium-sized manufacturing enterprises subject to size,technology and capital and other factors,coupled with the global financial crisis,human,management,capital,rent and resources and environmental costs continue to rise,low-cost era has passed,for small and medium manufacturing enterprises a substantial increase in costs,but also faced with more intense market competition,its development seriously frustrated,many small and medium enterprises in the wind and rain in the crumbling.According to statistics,most small and medium-sized manufacturing enterprises in the supply chain dominated,there is no initiative,do not pay attention to supply chain cost management and management level is not high.Therefore,some scholars believe that competition between enterprises has been transferred to the supply chain,supply chain cost management has become a new trend of enterprise cost management.Based on TOC theory and supply chain cost theory,we use case study method.First of all,combing the supply chain cost management,supply chain cost,TOC theory related domestic and foreign literature,lay the theoretical foundation for later research.Then,it analyzes the present situation and existing problems of supply chain cost management in small and medium-sized manufacturing enterprises in China.Second,selected a small and medium-sized manufacturing enterprises in Chongqing---M company as a research object,to conduct field research in the case company,and get the company supply chain cost management related information.At the same time,using the scholar Seuring,s theory of defining the cost of the supply chain,he divides the supply chain cost into three levels: direct cost,operating cost and transaction cost.On this basis,we divided the M supply chain cost management into: direct cost management,operating cost management,transaction cost management.Finally,the use of TOC theory in the system of analysis tools: five-step focusing and conflict map,in accordance with the identification of bottlenecks-the use of bottlenecks-withbottlenecks-to break the bottleneck-to find a new bottleneck logic,step by step hierarchical M company supply chain cost management,To achieve the M company’s entire supply chain cost management continuous optimization.Our innovation lies in two points.First,the TOC theory applied to the study of supply chain cost management.Second,using the TOC "five-step focusing method" and the theory of Seuring of supply chain cost stratification,we explored the problems of M company supply chain direct cost management,operation cost management and transaction cost management.In addition,made in-depth improvement measures according to the steps,In order to achieve the M company’s entire supply chain cost management continued to optimize.