Strategic Cost Management in the Supply Chain

2020 ◽  
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Return On Investment ◽  
Cost Management ◽  
Strategic Cost Management ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Definition Of ◽  
The Cost

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.

THE ROLE OF INFORMATION SHARING IN SUPPLY CHAIN MANAGEMENT: THE SECURESCM APPROACH

2011 ◽  
Vol 08 (03) ◽  
pp. 455-467 ◽  
Author(s):  
ERNESTO DAMIANI ◽  
FULVIO FRATI ◽  
ROMARIC TCHOKPON
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Information Sharing ◽  
Secure Computation ◽  
Normal Operation ◽  
Chain Management ◽  
The Cost ◽  
Role Of Information ◽  
Share Information

Information sharing plays a role of paramount importance in modern supply chain environments. In fact, the elements that compose the chain need to share information about sensitive aspects of their business in order to build more accurate and profitable supply plans. In this paper, we describe how the increasing of information released increases the overall economic results of the whole chain, and how this information can be protected, exploiting secure computation techniques, to reduce the risk of data disclosure and prevent quasi-altruistic or selfish behaviors without interfering with the chain's normal operation, and in particular with the minimization of the cost function.

scholarly journals A quantitative examination of competition, coopetition and cooperation in supply chains

2011 ◽  
Vol 42 (3) ◽  
pp. 61-70 ◽  
Author(s):  
M. Sepehri ◽  
K. Fayazbakhsh
Keyword(s):  
Supply Chain ◽  
Chain Model ◽  
Total Production ◽  
Cooperative Approach ◽  
Deterministic Demand ◽  
Single Period ◽  
Multi Stage ◽  
Supply Chain Costs ◽  
Production And Distribution ◽  
The Cost

Traditionally, the members of a supply chain compete to reduce their individual costs. However, as collaborative supply chain approach is urged within industries to reduce the overall costs, either full cooperation or partial coopetition is considered by the members. In cooperative approach, members benefit from lower overall costs and lower cost variations. But individually, some seem better off in a competitive approach in a single period considering their local costs. Coopetition, or partial cooperation, may be suggested as a compromise to lower overall supply chain costs, while members choose alliances towards lower average costs and cost variations.A multi-stage, multi-member, multi-product and single period supply chain model is considered with deterministic demand, capacity and cost. Product prices are assumed to be constant. The objective is to minimize total production and distribution costs of the overall chain. Four distinct cases are considered, modeled, simulated and compared. These cases are complete competition, integrated cooperation, two-stage supply chain partition, and partial coopetition. Quantitative conclusions from the cost performance ratios are drawn using the simulation results.

scholarly journals Management of Innovative Costs of Public Administration Institutions

2019 ◽  
Vol 8 (3) ◽  
pp. 3173-3177
Keyword(s):  
Public Administration ◽  
Management System ◽  
Cost Management ◽  
Financial Resources ◽  
Innovation Cost ◽  
Innovation Project ◽  
Cost Management System ◽  
The Cost ◽  
Different Levels

The growth of costs for innovation, as well as the growing role of public administration institutions, makes us take a fresh look at the cost management system. The article discusses the key point of the innovation cost management system at different levels of administration. Public administration institutions contribute to the implementation of innovation in the framework of both its own economic strategy and taking into account the strategy of higher governing bodies. The interaction and cooperation of various management structures within the framework of the implementation of a single innovative project can create an excessive expenditure of financial resources, which is why the issue of competent management of innovative costs becomes so significant. On a specific innovation project, possible problems in the interaction of various public administration institutions are considered, when planning and implementing a joint innovation project.

scholarly journals Study of the Construction Cost Management in Building Structure Design

2015 ◽  
Vol 4 (3) ◽  
pp. 1
Author(s):  
Hongjun Diao ◽  
Zhanhong Wang
Keyword(s):  
Cost Reduction ◽  
Cost Control ◽  
Cost Management ◽  
Structure Design ◽  
Building Structure ◽  
Corporate Profit ◽  
Improvement Measures ◽  
Engineering Cost ◽  
Building Engineering

Cost reduction is the goal of building engineering cost control and the main way to effectively increase corporate profit gains. In this paper, a brief discussion on the contents of engineering cost control in the building structure design is presented. It aims to make enterprises truly recognize the important role of engineering cost control through preliminary analysis and discussion and improve overall strength by a series of improvement measures.

scholarly journals Sustainable Supply Chain Finance and Supply Networks: The Role of Artificial Intelligence

2022 ◽  
pp. 1-16
Author(s):  
Femi Olan ◽  
Emmanuel Ogiemwonyi Arakpogun ◽  
Uchitha Jayawickrama ◽  
Jana Suklan ◽  
Shaofeng Liu
Keyword(s):  
Artificial Intelligence ◽  
Supply Chain ◽  
Sustainable Supply Chain ◽  
Supply Networks ◽  
Supply Chain Finance
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