Study On Strategic Cost Management Of SA Company In The View Of Value Chain

With the change of market environment,the competition among enterprises has gradually changed from the product type and price to the competition of cost and quality.Cost reduction plays an important role in the survival and development of enterprises and the promotion of competitive advantage.The traditional cost management mode only pays attention to the cost management of the production link,neglects the influence of the external environment on the enterprise cost management,and has been unable to meet the needs of the enterprise cost management.Therefore,enterprises need to choose a comprehensive,systematic,strategic cost management model to achieve the purpose of cost management.Strategic cost Management from the Perspective of value chain The cost of value chain is included,and it is a comprehensive and systematic mode of cost management,which fosters the competitive advantage of enterprises by strengthening the cost management.Through combing the literature about value chain,strategic cost management and value chain strategic cost management at home and abroad,this paper finds that there is still a big gap in the research of value chain strategic cost management in our country compared with that in foreign countries.It needs continuous improvement.At the same time,there are few case studies on the value chain strategic cost management theory applied in the enterprise practice.On the basis of clarifying the theory of value chain,strategic cost management and strategic cost of value chain,SA Company is chosen as the research object.This paper summarizes the successful experience of SA's strategic cost management through the study of the value chain cost management of SA,although the war between the company and the company is very important.There are many successes in the cost management,but there are also some deficiencies: first,the period cost is high,affecting the overall economic benefits of the enterprise;secondly,the supplier concentration is not high,the purchase cost of the enterprise is difficult to control;In addition,the company has not formed a scientific and effective customer service mechanism.Therefore,SA needs to develop scientific and effective period cost control measures,adopt different cost control strategies for different suppliers,and improve the quality of service to close the distance with customers.Through the cost management of the internal value chain,SA extends the scope of the cost control in the internal value chain to R & D,design,and makes the cost control from thesource of the value chain to reduce the production cost and increase the production and marketing rate.The cost of inventory also decreases;The company optimizes the key links of the internal value chain,pays attention to the cost control work from the inside of the enterprise,through the optimization of the production link,the integration of the logistics resources,the attention of the human resources,the choice of the unique marketing mode,Control the key cost generation links in the internal value chain.Then,by extending the vertical value chain to the procurement link,the procurement cost can be effectively controlled.Save the product cost from the source of the purchase,and further improve the competitiveness of the company's product sales.Finally,through the expansion of the horizontal value chain,a cooperative relationship and resource sharing are formed with competitors,thus avoiding the antagonistic relationship between enterprises and making the competitive advantage of both sides give full play.As a well-known enterprise,SA pays more and more attention to the application of strategic cost management theory among enterprises.With the development of enterprises and the development of market,it will play a more and more important role.