Research On Cost Management Optimization Of LC Company Based On Value Chain Analysis

With the continuous and rapid development of China’s economy and the gradual improvement of industrial automation,China is changing from a big manufacturing country to a powerful manufacturing country,which also promotes the transformation and upgrading of China’s industrial valve industry.However,at this stage,China’s valve industry is still in the state of high competition of low-end products.Medium and low-end valve manufacturing enterprises account for a large proportion.If such enterprises want to highlight their advantages in the competition,they need to continuously optimize cost management to enhance the core competitiveness of enterprises,so as to obtain long-term benefits.This paper analyzes and studies the cost management of LC company value chain from five parts.The first part is the introduction,mainly introduces the research background and significance,the current research status at home and abroad,the research content and methods;the second part is the overview of the relevant theoretical basis,including cost management theory,value chain theory and value chain cost management theory;the third part introduces the general situation of LC company,the analysis of LC company’s current situation,value chain analysis and cost management status;The fourth part is based on the value chain analysis of the internal value chain and external value chain problems in cost management of LC company.The problems in the internal value chain include the high purchasing cost,unreasonable cost allocation in the production link,irregular workflow,high cost of warehousing and sales,unreasonable human resource management,etc.,and the problems in the external value chain include the problems in the external value chain The fifth part is the optimization measures for the cost management of LC company value chain,first of all,the concept of optimization design,and the second is the optimization measures for the internal value chain,including the optimization of procurement,production,storage,sales and human resources management In the process of management,the optimization of external value chain includes optimizing supplier management,customer management and enhancing competitive advantage of enterprises.Finally,the paper proposes the measures to strengthen the cost management of the whole value chain,establish information sharing mechanism and improve the cost management system of the company value chain to ensure the smooth progress of the cost management of the value chain.This paper aims to find out the problems of cost management through optimizing the cost management of LC company value chain,and put forward relevant measures to improve it to achieve the goal of reducing the cost and maximizing the benefits of the company,so that the enterprise can gain the advantages in the competition,and also provide reference for other valve manufacturing industries.