Research About Cost Management Scheme In Dongfeng Automobile Based On Value Chain

Cost management is the most important management activity of modern enterprises,which is directly related to the survival and development of enterprises and embodies the core competitiveness of enterprises.With the continuous development and improvement of the value chain theory,the value chain cost management has been widely valued by enterprises.Automobile industry is one of the important industries of national economy.As a well-known automobile and enterprise in our country,Dongfeng Motor has been actively strengthening cost management through various measures in recent years,which has achieved certain results.However,from the perspective of value chain cost management,Dongfeng Motor has some deficiencies in value chain cost management.In view of this,this paper studies the cost management of Dongfeng Motor Company based on the theory of value chain cost management.Firstly,this paper reviews the related concepts and theories of value chain cost management,which lays the theoretical foundation for the research.Then,through the collection and analysis of Dongfeng company’s financial statements,the paper introduces the operation status and cost structure of Dongfeng Motor Company,and analyzes the existing problems of cost management in Dongfeng company.The main problems are that cost management is equivalent to cost reduction,internal value chain integration is not in place,and raw material purchase price is too high.These problems fully reflect the lack of value chain thinking in the cost management of Dongfeng Motor Company,thus affirming the significance of implementing value chain cost management of Dongfeng Motor Company,and clarifying that the value chain cost management of Dongfeng Motor Company includes internal value chain and external value chain.Then according to the information obtained from Dongfeng Automobile financial report and official website,this paper analyzes the internal value chain cost drivers of Dongfeng Automobile from product R & D,procurement,inventory,production,sales and human resource management,and then explores the external value chain cost drivers from the supplier and dealer links.Finally,based on the conclusion of cost driver analysis,this paper puts forward the corresponding implementation suggestions of Dongfeng Automobile value chain cost management from the internal value chain such as product R & D,procurement,inventory,production,sales,human resources and the external value chain such as suppliers and dealers.