Research On Product Cost Control Of J Company From The Perspective Of Value Chain

In recent years,global inflation has continued and commodity prices have fluctuated and risen.At present,the international crude oil price has exceeded the US $130 mark,reaching anew high in recent 10 years.Energy and chemical enterprises have ushered in an unprecedented period of development opportunities.However,the cost control of many chemical industries is often limited to one point,which can not systematically solve the problem of enterprise cost control,which restricts the profitability of chemical enterprises.Under the traditional perspective of cost control,the limitation of chemical enterprise must be solved.J company is a branch of YM company,an energy enterprise in Ningxia Hui Autonomous Region.Its chemical products have been well-known and influential in China after years of deep cultivation since they were put on the market.However,J company’s manufacturing cost is high and its ability to deal with market risks is weak.The problem of cost control has become an important factor restricting the continuous development of the enterprise.Firstly,this paper studies and studies the literature of enterprise value chain,cost control and other theories.By listing the successful cases of Tesla company using value chain analysis to reduce costs,this paper reflects the necessity of value chain analysis to reduce costs.Then,taking J company as an example,based on the perspective of enterprise value chain,this paper carefully combs and analyzes the current situation and existing cost control problems of its upstream and downstream environment,industry competition,production process links,consumption of main raw materials,financial management and logistics support.Through the external value chain analysis,it is found that the downstream sales model of J enterprise is too dependent on distributors,and the products are far away from the target market,and the sales expenses remain high.In addition,they do not pay enough attention to the competitors in the industry,can not timely benchmark and learn the competitive advantages of the competitors,and lack the ability of industry situation awareness.In the internal value chain analysis,according to the production process of J company,an internal value chain framework with the characteristics of J company is constructed.Through the internal value chain analysis,it is found that the enterprise lacks the comprehensive consideration of cost-effectiveness and plant operation efficiency in the purchase and selection of main raw materials in the production link;The pricing of internal professional service fees is generally high,the dependence of plant operation and maintenance on outsourcing is high,the cost accounting is extensive,the industry and finance are integrated,and the logistics service guarantee is insufficient.In view of the problems obtained from the analysis of J company’s external value chain,this paper proposes to further clarify the target market,develop key customers and optimize the sales structure;Pay attention to competitors,benchmark first-class and improve quality;The procurement of main raw materials shall implement optimization schemes such as quality and benefit comprehensive management.According to the problems from the internal value chain analysis of J company,this paper puts forward some suggestions,such as comprehensively implementing activity-based costing and implementing fine accounting;Establish and improve the internal specialized service market,and transfer the operation and maintenance of the plant from outsourcing to self operation;Strengthen R&D and enrich product structure;Promote the forward movement of polyoxymethylene product line and improve logistics services;Carry out a series of practical and effective improvement schemes such as daily benefit accounting and financing industry and finance.Based on the optimization scheme,the implementation guarantee measures are given in order to better implement the effect of cost control.Through the practical application of cost reduction based on value chain analysis to J company,compared with the traditional cost control,it highlights the advantages of comprehensiveness,refinement and efficiency,and provides a reference basis for J company to comprehensively and systematically improve its cost control ability and enhance its industry competitiveness.