Research On Cost Management Of S Company Based On Value Chain

With the increasing competition in the mainstream automobile industry,the auto parts manufacturing industry is facing the background of rising raw material prices and increasingly strict customer requirements,and the requirements for cost management gradually tend to be comprehensive and systematic.In the face of such modern management needs,the traditional cost management method limited to production cost control is gradually falling out of date,and the cost management analysis method based on value chain can choose better services for the development and strategy of enterprises,which has more profound reference significance.Through consulting and interviewing the internal management personnel of S Auto parts Company and field visits,this paper analyzes and studies the cost management problems of S Company from the perspective of value chain,and puts forward targeted suggestions for improvement.The value chain analysis method selected in this paper is a cost management analysis system based on the perspective of the whole value chain,which makes a comparative analysis of the upstream suppliers and downstream distributors of the enterprise value chain as well as its competitors in the industry,and makes an in-depth analysis of the cost of each value activity in the internal value chain.Combined with the limitations of the existing traditional cost management methods of the selected case enterprise S Company,the cost management problems on the vertical value chain are proposed,such as the concentration of upstream suppliers is too high,the cost of upstream supply materials is too low,the dependence on specific downstream customers is too high,the downstream key customers are not stable;Cost management problems of horizontal value chain with insufficient cost control ability and unreasonable product structure compared with competitors;Research and development input-output situation is poor,material waste phenomenon is serious,production equipment utilization rate is too low,human resources allocation is unreasonable,lack of quality control in advance and other internal value chain cost management problems.Based on these cost problems,corresponding improvement suggestions are given.Through the application of value chain theory in the cost management of S company,we hope to provide some guidance for the improvement of the cost management of S company.In theory,in the hope that this paper can further supplement for a particular industry value chain cost management the research content,in order to achieve the application research of value chain cost management to provide the corresponding theoretical support,the study of the value chain cost management and to China’s auto parts manufacturing enterprise cost management activities produce certain reference significance and influence.