Research On Z Company's Cost Control From The Perspective Of Value Chain

With the "re-industrialization" of Western traditional textile powers and the acceleration of industrialization in emerging third world countries,China's textile enterprises are facing increasingly fierce market competition,and more optimized cost control measures can effectively enhance corporate competitiveness.Cost control from the perspective of value chain is an emerging research direction of cost management,at present,few scholars conduct relevant research on textile enterprises from this perspective,since cost control under the value chain emphasizes cost control from the height of corporate strategy development,enterprises are required to include all the operational links involved in upstream,midstream and downstream into the scope of cost control.Based on the value chain and cost control theory,this paper selects a yarn manufacturer Z company as the research object,analyzes the relevant theoretical basis,expounds the current situation of Z company's current cost control,and analyzes the cost structure of Z company's value chain.The cost structure of Z company's value chain is analyzed,it is pointed out that Z company has a single procurement mode,procurement is limited by seasonal characteristics,weak independent research and development ability,lack of employee incentive policy,unhealthy capital structure,and low professional quality of sales team in the cost control of the upstream,midstream and downstream value chains.Afterwards,in response to the above problems of Z company,this paper proposes some improvement measures,including extending the company's upstream industrial chain,enriching raw material supply channels,changing the procurement mode of raw materials,optimizing the inventory model,adding independent R&D centers,strengthening information management,and focusing on human resources management,broaden sales channels,improve the professional quality of sales staff,and dig deep into the textile market;After that,the cost control improvement measures for textile enterprises were proposed.Firstly,the concept of cost control in value chain should be established and establish an efficient value chain cost control model.Secondly,to extend the upstream value chain of the enterprise by establishing industrial alliances and optimizing product structure.Thirdly,through the establishment of R&D centers,remote storage,and introduction of advanced technologies.Establishing a talent attraction mechanism and other methods to strengthen the cost control of the mid-stream value chain of the enterprise.Finally,by strengthening the quality of the sales team,broadening the sales channels,establishing an information feedback mechanism and strategic cooperation to expand the downstream value chain of the enterprise.The opinions and related measures provided in this paper can be used as a reference for Z company to optimize its cost control,and can also provide new ideas for more textile companies to improve their cost control methods.