I. Overview of the value chain
(A) the concept of value chain. From 65438 to 0985, Michael Porter, a famous American strategist, put forward the concept of value chain for the first time in his book Competitive Strategy. He believes that "every enterprise is a collection of activities for design, production, marketing, delivery and products, and all these activities can be expressed by value chain". The business activities of an enterprise can be regarded as a process of continuously investing costs to generate value. In this process, it is divided into several interrelated value activities. All the value activities are connected to form a complete value chain. The reaction of a series of internal business activities of enterprise product appreciation is an interrelated whole formed by the organic integration of enterprise production, marketing, finance and human resources. Every value activity will have a certain impact on the realization of the ultimate value of the enterprise. Each value link has various connections with other value links, and each value link cannot independently complete value creation activities. The value chain not only refers to the internal value activities of enterprises, but also includes various connections with external value chains such as suppliers in the upstream of the value chain, customers in the downstream of the value chain and competitors.
(2) Classification of value chain. (1) commercial value chain. Enterprise value chain is a collection of all kinds of value activities and the links between value activities in enterprise product value chain. This connection is mainly reflected in quantity, time and technology. The analysis of commercial value chain is mainly to find out the interaction of various activities in the value chain in quantity, time and technology. (2) Enterprise value chain. Enterprise value chain refers to all kinds of value creation activities and their relationships within the enterprise. Compared with the enterprise value chain analysis, the enterprise value chain analysis focuses more on the analysis of the relationship between the various links in the enterprise value chain, because the relationship between the internal value activities in each link of the value chain is mainly reflected in the relationship between various value activities in different product value chains, and these relationships are discovered through the enterprise value chain analysis. (3) Industry value chain. Industrial value chain, also known as vertical value chain. If an enterprise wants to achieve long-term and stable development, it should take a long-term view and adjust and optimize the enterprise from the perspective of the whole industry value chain, instead of just paying attention to the internal value production process. (4) Competitor value chain. Competitor value chain is also called horizontal value chain. Competitor value chain refers to the value influence chain between enterprises that produce the same or similar products in the market. By comparing with other parallel enterprises, enterprises can accurately locate their own enterprises and clarify their advantages and disadvantages. The above-mentioned value chains are interdependent and interrelated in the process of enterprise production and operation, forming an organic whole and cooperating with each other to serve the enterprise production and operation objectives.
Second, enterprise cost management analysis
(A) the concept of cost. Cost refers to the monetary expression of certain resources (manpower, material resources and financial resources) consumed by people in production and business activities. Cost analysis is an analysis method that uses cost accounting and other related materials to analyze the changes of cost level and composition, study various factors affecting cost rise and fall and their causes, and find ways to reduce costs.
(B) the significance of cost analysis. Cost analysis is the analysis of cost indicators based on cost data, which generally includes three aspects: pre-cost analysis, in-process cost analysis and post-event cost analysis. Through cost analysis and then cost control, the goal of cost control has two different levels: (1) The overall goal of cost control is to reduce costs. (2) the strategic goal of cost control, that is, the goal of cost control should be consistent with the strategic decision-making of enterprises, and cost control should be used to assist the implementation of strategic decision-making of enterprises, so as to gain cost advantage and help enterprises improve their core competitiveness. The strategic goal of cost control is to allocate resources more reasonably, assist enterprises to make strategic decisions and gain competitive advantages. By controlling the cost, we can improve the product quality and reduce the product price, thus increasing the product sales and making enterprises gain more profits.
Third, the value chain of enterprise cost management
The cost control of internal value chain is to identify and construct the enterprise's own superior value chain on the basis of ensuring the strategic positioning of the enterprise in the industrial value chain, so as to enhance the core competitiveness of the enterprise on the premise of maximizing the customer value of the whole value chain.
(A) the connotation of value chain cost management. The cost management based on value chain mainly refers to the comprehensive collection, analysis and utilization of the cost information of each link of the value chain under the guidance of the concepts of value chain management and strategic cost management, based on activity-based cost management, and using advanced management system tools to support the construction and optimization of the value chain. The spatial category of enterprise cost is not limited to the internal value chain of core enterprises, but also includes the enterprise cost behavior from the perspective of value chain alliance, that is, supplier value chain, buyer value chain and their relationship with the internal value chain of enterprises. It can be seen that the cost management theory based on the value chain focuses on the whole economic activity process of an enterprise from raw material procurement, production to sales and after-sales service, and its focus is to confirm which part or parts of the value chain the enterprise occupies, so as to analyze which combination can achieve the goal of minimum total cost and maximum total value.
(B) the principle of value chain cost management.
(1) system optimization principle. The purpose of value chain management is to achieve the best business performance by coordinating all links in the value chain. Enterprise's cost management should start from the whole value chain, based on all aspects of the whole value chain and production, and pay attention not only to a certain link in the production, purchase and sales of the value chain, but also to the coordination and control of related enterprises in the whole value chain. In order to make the overall cost of the enterprise lowest, the cooperation of all relevant enterprises is needed.
(2) the principle of importance. Due to the limited resources and strength of the whole value chain of enterprises, the optimization of value chain cost should follow the principle of cost-effectiveness. 80% of the cost of an enterprise is caused by 20% of the activities. Therefore, enterprise cost management based on value chain should be a more targeted cost management behavior. Use value engineering and other analytical methods to find the key points in the process of enterprise value creation, focus on the links that play a key role in the overall cost and competitive advantage of the value chain, and invest more means of production at the key points to ensure the characteristics and advantages of products.
(3) the principle of customer demand orientation. Enterprise cost management should aim at improving customer value, which is determined by the inherent characteristics of the value chain, and customer demand drives the operation and development of the whole value chain. In all aspects, what and how enterprises produce, as well as logistics and after-sales service, are driven by the needs of downstream customers, and the needs of enterprises for upstream suppliers drive the operation of upstream enterprises. Therefore, cost management based on value chain should be a cost management activity with the logical starting point of finding and exploring customer demand points and determining the best buyer utility.
Fourth, the value chain cost control strategy
(A) external value chain cost control strategy.
(1) Carry out comprehensive budget management and try to raise funds through multiple channels to reduce financial expenses. Scientifically carry out a comprehensive budget, and promote efficient and orderly financial budget control through careful planning in advance, effective management in the event and comprehensive feedback afterwards. Optimize budget management and eliminate information islands. Promote resource optimization and information sharing, and scientifically formulate business and financial budgets according to enterprise operations, capital flow and asset composition.
(2) Reasonably integrate the upstream and downstream of the value chain and handle the relationship with the upstream and downstream. The activity patterns of upstream suppliers and downstream customers directly affect the product cost or enterprise benefit. Enterprises should establish good and stable cooperative relations with upstream equipment suppliers to achieve mutual benefit.
(B) internal value chain cost control strategy.
(1) It is necessary to rationally organize human and material resources and reduce the project cost. Each functional organization implements each process in parallel, closely cooperates and restricts each other, and strives for high quality and low cost.
(2) Business process reengineering, eliminating non-value-added activities, improving the efficiency of value-added activities, and constantly improving the value chain. Non-value-added activities do not contribute to the formation of the final product. Eliminating them will not only affect the production of products, but also reduce the input of manpower, material resources and financial resources and reduce the cost of products. Value-added activities can be divided into inefficient activities and efficient activities. Enterprises should objectively and accurately judge inefficient activities in the value chain and improve production efficiency as much as possible. All the value activities in the value chain are interrelated and influence each other. Inefficient operation will affect the production behavior of other value activities and increase the product cost invisibly.
(3) Pay attention to training professionals. Value chain cost management is a new strategic management method. Therefore, in order to implement cost management based on value chain, it is necessary to strengthen the construction of cost management, which requires enterprises to have a team of high-quality professional and technical personnel. Because all kinds of effective information needed for value chain cost management are often cross-disciplinary, cross-departmental and interdisciplinary, only professionals who really know modern management science can distinguish the authenticity and reliability of all kinds of external information from the complex economic environment, so as to find the information resources that enterprises really need.
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