Total Value Chain Cost Control For TG Aluminum Alloy Cable

Aluminum alloy cable is a new cable solution which imported from North America recently.Since a few years of introduction,the attitude to the cable changed from rejection to acceptance,then developed fast into imitation without any limitation.With the depression of global economy,the Chinese economy change into a new step.Domestic overcapacity causes more serious competition among cable industry.As a leading enterprise which first introduces the Aluminum alloy cable,TG Group faced with the huge impact that before the new business being mature.In order to find a way out,first and foremost solution is reducing the cost.This article analyzes the current cost of management status of TG alloy cable from different process like raw material procurement,internal management and marketing action.Finally the improvement measures and solutions are put forward by using the theory of value chain and the theory of modern cost management.So this article trying to look for solutions about solving these problems.Reforming from the internal organization,putting marketing,procurement and supply chain as centralized management,making the best use of the advantages of the group resources.The Factory plant layout also needs drastic alterations,re-arrangement of the mounting equipment,in order to reduce persistent and recessive waste in the internal supply chain and to strengthen the construction of team?system etc.At the same time,the company is also committed to strengthening and builds a vertical strategic alliance between upstream and downstream.Establishing technologies,products complementary lateral strategic alliances in the same industry.To solving the problem of unnecessary marketing and quality waste caused by external environment,we should put forward the outsourced quality detection,the Internet online supervision,e-commerce and online evaluation method,improve the quality of credibility,making the information between users and suppliers symmetrical,eliminating the influence about cut corners,malicious competition with lower quality and lower cost.The purpose of this article is aimed at reducing the waste of explicit and implicit cost,in order to create cost advantage?new opportunity advantage?differentiation advantage,so that improve the comprehensive competitiveness of enterprises,and gradually to guide the healthy development of the industry.