The Research Of Value Chain Cost Control In RF Pharmaceutical Company

The pharmaceutical industry has entered a new cycle of transformation and upgrading with the development of the country and changes in the market environment.Many pharmaceutical manufacturing industries are facing new development potential and challenges,and value chain cost control provides an important opportunity for their healthy development.Value chain cost control is a cost control established on the basis of value chain theory and cost control related theories.The use of value chain analysis methods to control costs is an important way to coordinate and control industrial costs in China.The paper takes RF Pharmaceutical Company as the case study object,using literature research,case study,comparative analysis,quantitative and qualitative methods,focusing on analyzing the current situation of cost control in the company,analyzing the cost control problems in the main links of the company’s value creation process,and using value chain cost control methods to propose cost control strategies for the company.Research has shown that the cost control of the case company based on the value chain perspective fully reflects the value chain cost management philosophy.RF Pharmaceutical Company is located in a technology intensive industry,with a complete series of industrial chains including drug research and development,material procurement,production and sales,and drug sales,covering the basic content of enterprise value chain analysis.In internal value chain activities,the main problem of the company is improper control of total and investment costs,and inadequate cost control;In vertical value chain activities,there are issues with high raw material prices and transportation costs,as well as transportation,advertising costs,and customer concentration in remote markets;In horizontal value chain activities,it was found that there are shortcomings in research and development investment and sales costs compared to peers,and there is a lack of analysis of competitors.On this basis,corresponding cost control strategies were proposed from three levels: internal value chain,vertical value chain,and horizontal value chain.The study believes that the implementation of value chain cost control by RF Pharmaceutical Company is in line with its current production and operation status.The cost control strategy proposed in the study helps the company reduce procurement losses,compress production costs,form economies of scale,expand the market,and enhance competitiveness.At the same time,it can provide important reference and reference for similar companies.