Research On Cost Control Of K Cabinet Manufacturing Company Based On Value Chain Theory

Under the trend of economic globalization,market economy unceasing development,now the market environment for private enterprises become more competitive,to survive or seek development,in addition to leading technology,well-funded,management has played a more and more important role in it.And cost control is inevitable in the enterprise management activity,the theme of the cost control is a direct result of lower costs and increase profits,so as to improve enterprise management level,enhance core competitiveness.With the continuous development of market economy,the traditional cost control method is not enough to meet the requirements of modern enterprise development.Based on the cost control of enterprise based on value chain and cost control method,the optimization and adjustment can be in the economic competition and changeable market environment,help enterprises to improve the level of modern cost management.In this paper,K cabinet company,a cabinet production company,is used as the research object,and the literature research method,case analysis method and other research methods are used.Paper first expounds the concept and theory of cost control,and the value chain,and connecting with the management cost control theory,the K ambry company adopts cost control management system analysis and research,points out that the enterprise of the limitation of traditional cost control methods.Then the paper from the enterprise sales orders,product style design,material procurement,manufacturing and transport installation process aspects,such as analysis,found that K ambry company procurement of raw materials cost is higher,the artificial expenses exceed standard in the process of production,cost of sales is bigger,transport costs associated with unstable installation phase,etc.The problems existing in the enterprise internal value activities.In addition,the company produced in the process of cooperation with suppliers of extra time,manpower cost and the cost of capital,and the enterprise sales activities with customers may lead to the backlog of inventory costs,and customer transactions occurred in the process of cost and the cost control problems in the external value activities,such as cost of sales has been neglected.Therefore,the profit revenue of K cabinet company is less than expected,and the enterprise development is slow to have no competitive advantage in the market of the same industry.After specific analysis K ambry company cost control problems,the paper according to the problems found during the research process,under the guidance of the value chain theory,in view of the enterprise internal value chain and the external value chain related links,suggest fully coordinate the relationship between each other,build enterprise KPI evaluation system,improve the product design,production of inventory,quality,cost,sales and transportation cost control,at the same time,from the perspective of supplier chain and customer value chain Angle is put forward to optimize the cost control method,for K ambry company gain more advantages in market competition,help enterprises to better development.