Supply chain cost management (Cost?Management?in?Supply?Chain) includes all material costs, labor costs, transportation costs, equipment costs, etc. incurred by enterprises in the procurement, production, and sales process to support the operation of the supply chain. Supply chain cost management can be said to be a supply chain management method using cost as a means, as well as a new way of thinking to effectively manage the supply chain.? Supply chain cost management is a kind of cross-enterprise cost management, whose vision goes beyond the internal enterprise, but extends the meaning of cost to the whole supply chain of the enterprise's operating costs and transaction costs between enterprises, and its goal is to optimize and reduce the total cost in the whole supply chain.
According to the report of Mercer Management Consultants, an internationally renowned consulting firm, nearly half of the surveyed company managers will take supply chain cost management as the first of the company's 10 major events. The U.S. Kearney consulting company also pointed out that the supply chain can cost the entire company up to 25% of the operating costs, and for a profit margin of only 3% -4% of the enterprise, even if the reduction of 5% of the supply chain costs, is enough to make the enterprise's profits doubled, so that the degree of its impact is extraordinary. It can be said that to grasp the supply chain cost is to grasp the real core competitiveness.