Research On Cost Management Optimization Of M Company Based On Value Chain Theory

With the rapid development of China's economy,foreign new sales models of retail companies continue to flood into the Chinese market,and have occupied a certain seat in the Chinese market.In the fierce competition situation,although most of our retail companies have generally higher sales,they have limited space to earn profits under the fierce price war after excluding various costs.Therefore,retail companies must maintain market competitiveness and improve profitability.Capacity,we must pay more attention to cost management.During the period,China's retail enterprises have a relatively large proportion of total expenses,various types of products sold,and flexible management links.The current scope of cost management methods is narrow in scope,incomplete and meticulous in management,and lacks awareness of cost management based on value chain theory.The current development needs of the company.Therefore,the cost management of an enterprise must keep pace with the times,change the thinking of cost management in a timely manner,and use a flexible and comprehensive cost management method to optimize the cost management model of the enterprise to achieve the purpose of improving the operational efficiency of the enterprise,thereby enabling the enterprise to gain a foothold in the market.To occupy an advantageous position.Based on the theory of the value chain,this article selects M company,a small and medium-sized retail company in Henan Province,as a case to explain the company's profile and current status of cost management,and to find out the problems in its cost management from the external and internal aspects of the company.It points out that the external cost management mainly has problems such as excessive procurement costs,unreliable suppliers,chaotic supply of fresh products,low overall store staff quality,and inadequate service awareness.Internal cost management mainly includes inventory and transportation costs.High cost,distorted cost accounting information,severe cost overrun results,and a large number of hidden costs.Find out the existing problems and analyze their causes.Aiming at the problems in the cost management of Company M,it is proposed to select suitable suppliers to establish long-term cooperative relationships,enhance the targeting of marketing customers,integrate and optimize internal value chain content,introduce activity-based cost accounting,improve logistics efficiency,strengthen distribution supervision,and A series of corresponding optimization countermeasures,such as coordinating the relationship between value chain activities,etc.,then analyze the implementation effects of the optimization countermeasures,and draw conclusions that the optimization countermeasures are effective.Finally,the cost management optimization countermeasures of M company based on the value chain theory include the guarantee measures to improve the cost management system,establish a talent incentive mechanism,and improve the level of information management.This article combines theory with practice and proposes optimization countermeasures for the actual situation of company M to ensure that its cost management is more in line with industry and market development trends.