Research On Cost Control Of Pien TZe Pharmaceutical Industry From The Perspective Of Value Chain

In 2019,the state council formulated 15 types of medical documents and set forth a series of key tasks for deepening the reform of the medical and health care system.Among them,one of its tasks is to strengthen the supervision of drug price and establish the corresponding drug price tractability mechanism.With the deepening of the government's pharmaceutical reform,and with the development of the economy of The Times,the functions of pharmaceuticals are becoming more and more similar.As a result,many pharmaceutical companies have increased their investment in research and development costs,resulting in increasingly fierce competition among the pharmaceutical industry.It is no longer a good idea to raise the price of drugs to increase the profits of enterprises,so the control of cost has become a concern of pharmaceutical manufacturers.However,with the change of the operating environment of the pharmaceutical industry,the traditional cost control method,which mainly reduces the amortization of costs by improving productivity,has limited space for cost compression.It is difficult to match the rapidly developing market.The cost control from the perspective of value chain not only covers the internal links of the enterprise,but also develops the external aspects of the enterprise vertically and horizontally.It breaks the limitation of traditional cost control and explores more cost control opportunities through effective analysis of internal and external of the enterprise.The goal of value chain cost control is to optimize the overall cost of the enterprise,realize the maximum value of the enterprise and obtain long-term competitive advantages.This paper chooses pien Tze Huang Pharmaceutical Industry as the case to study and discuss.Based on the previous literature,this paper firstly expounds the relevant theories and puts forward the basic methods of value chain cost control.Secondly,on the basis of a brief overview of the industry and the pharmaceutical industry,this paper analyzes the current situation of cost control in the main business processes of the enterprise,and introduces value chain cost control into the enterprise.Then,the strategic cost drivers of pien Tze Huang pharmaceutical industry were analyzed as a whole,and the cost structure of the enterprise was reclassified based on the value chain cost control method.The problems in cost control of pien Tze Huang pharmaceutical industry were analyzed from the perspectives of internal value chain and horizontal and vertical value chain.Specifically,in the internal value chain and vertical value chain,the data of each link of pien Tze Huang were compared with the industry data.The problems in the overall cost control of this link were analyzed first,and then the cost control points of each link were analyzed in detail.In the horizontal value chain,the value chain of pien Tze Huang pharmaceutical industry is compared with that of its competitors.Finally,in view of the existing problems in the pharmaceutical industry's value chains,this paper proposes the following measures: introducing supplier cooperationmechanism and adopting just-in-time system in the internal value chain;In the horizontal value chain,we should strengthen market research and analysis on direct competitors and adopt a win-win attitude towards potential competitors.In vertical value,establish supplier rating system and customer return rate matrix to effectively select suppliers and customers.Through the analysis of pien Tze Huang pharmaceutical's cost using value chain analysis method,it is helpful for the enterprise to comprehensively discover the advantages and disadvantages of its cost control,and to detail its cost control points,so as to form its cost advantage in the industry and gain long-term competitiveness.It will also be helpful to the cost control of Chinese pharmaceutical enterprises.