Research On Cost Management Of S Conveyor Equipment Company Based On Value Chain

With the rapid development of China's heavy industry and the increasing demand for conveying machinery products,production enterprises have expanded their capacity to meet the needs of conveying machinery in various fields.However,with the continuous increase of transportation equipment companies,the market competition is becoming more and more fierce,and the industry profits are constantly being compressed.The company leadership found that the traditional cost management mode is far from enough to win a place in the fiercely competitive market.It must be considered from a long-term perspective to improve the existing cost management mode,and the value chain cost management mode is a good direction for improvement.As a manufacturing enterprise,S company's traditional cost management model can not help enterprises to further improve their profitability.Taking S company's cost management mode as an example,this paper uses the concept of value chain cost management mode to analyze and improve S company's current cost management mode,in order to help S company better face the current harsh market environment.Firstly,this paper elaborates the definition and theoretical basis of the related concepts of value chain cost management.Then,based on the analysis of the current situation of cost management in S company,it puts forward the idea of using value chain cost management to solve the problems of backward cost management concepts,confusion of cost management in production,warehousing and R&D links,unreasonable management of suppliers and customers.Horizontal value chain analysis of S company's cost management from three perspectives: internal is through the activity-based costing method to sort out the production process of products,the indirect cost of enterprise production process is reallocated;ABC classification method is used to classify the company's inventory,optimize warehousing management to reduce warehousing costs;R&D link is to reorganize the R&D process.To enhance the investment of value-added activities to enhance the overall revenue of enterprises;to optimize the selection of suppliers by using the correlation matrix method in the vertical value chain,to strengthen the cooperation between the two sides,to pay attention to the real needs of customers,to create value for customers in order to obtain additional revenue;to select benchmarking enterprises,Zhejiang Shuangjian Rubber Co.,Ltd.,for the horizontal value chain.Through the analysis of benchmarking enterprises' differences,we can find out the parts that S company can improve.Finally,this paper puts forward the corresponding safeguard measures for the application of S company's value chain cost management.It is found that the application of value chain cost management in SMEs can also play a good role.The cost management mode of value chain provides a new way for S company to raise the focus of cost management to the whole link of product research and development,material purchase,production and processing,sales and after-sales,from the competition of enterprise's own strength to the competition of the whole value chain.Although there are few actual cases about the application of value chain in small and medium-sized enterprises in China,with the continuous improvement of my research on the application of value chain cost management,it is a trend for small and medium-sized enterprises to join the value chain cost management model in the future.