Research On The Cost Management System Of Y Company Based On Supply Chain Management

As the traditional industry,the steel industry plays an important role in the development of our country and people’s life.However,due to the increasing downward pressure of the economy,the prices of raw materials such as iron ore are rising.At the same time,the demand of customers for steel is decreasing,which leads to the overcapacity of many steel companies.The imbalance between supply and demand has intensified market competition.Y company also presents the trend of cost rising sharply and gross profit rate decreasing gradually in recent years.The profit is far from the expected level.In the current situation,in order to seek development in the fierce competition,the change of cost management mode of Y company is imminent.Taking Y company as an example,through reading literature and field investigation,this paper first expounds the current situation of cost management from three aspects:organizational structure,process and method.Then,it summarizes some problems existing in cost management of Y company from four aspects.First,in the process of research and design,they don’t pay attention to the cost decreasing.Second,the supplier selection and communication mechanism in the process of procurement is not perfect.Third,the cost accounting in the process of production is unreasonable,and in the process of sales,the cost control is far from satisfactory.Besides,based on the perspective of supply chain,this paper analyzes the causes of three aspects,namely,the lack of supply chain management awareness,the lack of scientific cost management system and the lack of supply chain information sharing.Therefore,this paper introduces the research method of supply chain cost management.Based on the four main business links of Y company and combined with Entropy TOPSIS method and activity-based costing method,it constructs the cost management system from the perspective of supply chain.Finally,in order to ensure the smooth operation of the management system,this paper puts forward supporting measures from the four aspects of rules and regulations,ideological construction,information system and organizational structure,so that the company can further reduce costs,improve core competitiveness and achieve sustainable development.