The Analysis Of H Company's Cost Management Improvement Based On Value Chain

Nowadays,the clothing industry is increasingly competitive.There are many domestic clothing brands,but most of them have a low market share.Foreign brands are also constantly entering the domestic market.At the same time,with the domestic economy changing,the cost of channels and labor are also rising,which make the difficulty of clothing companies' survival rise greatly.If clothing companies want to hold the pressure and gain competitive advantage,they have to focus on cost management and explore the economic benefits behind it.The traditional cost management only focuses on the cost of internal production,and sticks to itself without further perspective.The value chain cost management breaks through the constraint under the traditional cost management.It takes the maximization of overall value as the final objective.With the tool of value chain analysis,each link on the value chain will be considered and the cost of each link can be improved,so that the value of the whole can be realized.Only through good cost management can the clothing company stand out in the industry and achieve sustainable development.After sorting out the related literatures and theories such as value chain and value chain cost management,in order to understand more carefully the practical application effect of related tools in enterprises,this paper takes case analysis as a research method and selects a men's wear production enterprise as a research.The object analyzes the current status of the cost and the existing problems from the perspective of the value chain,and then gradually proposes corresponding solutions to provide reference for the development of the enterprise.Firstly,after analyzing its value chain,it elaborates from the internal value chain and the external value chain.Through the analysis of the internal value chain,it is found that the company's procurement is scattered,which is the dispersion of supplier selection and the decentralization of internal procurement.The procurement scale and payment procedures also have many irregular problems.At the same time,the company's own production There is still room for adjustment in terms of outsourcing,and the difference in gross profit margin between different products in the two modes is large;in addition,there are certain problems in internal production methods,lack of flexibility,low cost efficiency,and separate policies among departments.The cost of communication is large;the logistics link also has improper control.Through the analysis of the external value chain,it is found that the relationship between the company and the supplier is not stable,which is not conducive to controlling costs from the source;the direct store is superior to the franchise in terms of cost management,but the quantity is too small;Inaccurate,resulting in a series of cost losses.Through the research on the existing cost issues,the paper proposes corresponding improvement programs in turn.For the internal value chain,the company should standardize the procurement process as soon as possible,carry out centralized procurement,judge and distribute the outsourcing and self-production after analyzing the profitability of each product.Advanced technology and the idea of flexible production should be introduced,which can improve efficiency and reduce costs,and shorten the time for zero value-added.Logistics links should be properly optimized to reduce useless links;for external value chains,companies should High-quality suppliers establish long-term stable strategic partnerships,increase the number of self-operated stores,and use reasonable means to make more accurate predictions of demand.Finally,this paper also provides insights into the implementation of value chain cost management from three aspects: organizational structure,information sharing,and corporate culture.