| Steel is the cornerstone of the great rejuvenation of the Chinese nation and social progress.It is an indispensable material in national construction and people’s life.Affected by the global economy and national policy restrictions,the competition among domestic iron and steel enterprises is becoming increasingly fierce,and the pressure they are facing is increasing day by day.How to reduce production costs while improving product quality,highlight the core competitiveness of products,and then expand the company’s competitive advantage is a key issue that every steel enterprise must think about.However,the traditional cost management mode,the enterprise by reducing consumption at the compression cost in the process of production and management practice of limitations is larger,by contrast,based on the value chain cost management pattern to break the disadvantages of the internal cost management,will expand to outside of the enterprise cost management concept,not only can more effectively control enterprise cost,At the same time,it is beneficial to promote the benefit of the whole value chain.This paper firstly summarizes and summarizes the relevant literatures at home and abroad,and expounds the meaning,classification and characteristics of the value chain cost management theory.Through comparative analysis,the advantages of the value chain cost management method are introduced,which lays a theoretical foundation for the rationality and feasibility of the company’s application of the value chain cost management method.Secondly,it briefly introduces the basic situation of W Iron and Steel Company,analyzes the company’s financial status,internal management environment and accounting methods,and finds that the company has problems in procurement cost,RESEARCH and development cost,cost accounting method,storage cost and cost management scope.Thirdly,it analyzes W Iron and Steel Company from three perspectives of value chain and studies some value activities.It is found that the company does not pay much attention to the cost management of external value chain and has higher research and development costs compared with benchmark enterprises.Finally,related optimization measures are given from the perspective of value chain:VMI strategy is used to reduce the cost of purchasing,optimize the product development process,the homework cost method is adopted in cost accounting,using the first-in,first-out method and the method of zero inventory management to reduce storage cost,strengthen the importance of suppliers and customers,strengthen the learning of benchmarking enterprise,and puts forward three additional protection measures.On the one hand,this paper analyzes the case of W Iron and Steel Company.On the other hand,it provides reference for other domestic steel enterprises to use the value chain for cost management. |
