Research On Cost Control Of LD Company From The Perspective Of Value Chain

As the country’s basic industry,the petrochemical industry has always been supported by national policies.In recent years,environmental protection policies promulgated by the state have increasingly higher requirements for carbon emissions,and people ’ s environmental awareness has increased day by day.The sluggish market demand in the traditional petrochemical industry,the increasing overcapacity of the industry,the adjustment of the industrial structure to reduce energy consumption,the increase in operating costs and the decline in product prices,have put small and medium petrochemical companies under tremendous pressure from competition.The key factor for manufacturing to gain competitive advantage is cost advantage.Strictly controlling the cost of production and operation under the premise that the production process cannot be changed in the short term has become a necessary condition for realizing low-cost competitive advantage and company strategy.This paper selects a representative petrochemical company LD company as the research object,comprehensively uses literature review method,field survey method and other methods to study the application of value chain theory in LD company cost control.The thesis first introduces the background and significance of the topic,and learns the current research status of value chain theory and value chain cost control theory at home and abroad.Secondly,based on the analysis of the value chain cost control theory,through the analysis of the value chain of LD company,the problems in the procurement,production and sales of raw materials are discovered,and suggestions for improvement of the cost control of the value chain of LD company are put forward.Realize the win-win situation of multiple enterprises in the value chain,and finally put forward safeguard measures.Through the research on the cost control of the LD company’s value chain,the following conclusions are drawn: First,the activity-based costing method should be used as the main accounting tool for internal value chain cost control to effectively identify value-added operations and non-value-added operations and reduce resource waste.The second is to comprehensively investigate the market prospects of the products in the procurement process,and to do a thorough investigation and analysis in advance to reduce costs as much as possible.The third is to conduct classified management and selection of suppliers,customers,etc.,and establish a good strategic partnership to achieve information sharing and good logistics connection to optimize the entire value chain.