Operational Efficiency Cost Reduction Studies Based on Supply Chain Management

The operational efficiency cost has a direct impact on the manufacturing cost of final product. From the perspective of supply chain management, the operational efficiency cost of an enterprise is the organization operating cost that takes place in the process of providing products or services by the enterprise. These expenditures are a must, though they do not increase the value of the product. The occurrence of these expenditures is a direct affect the formation of the product cost. Through the analysis of the internal subsystems and the associated efficiency cost, using the thinking of supply chain management, highly efficient operation can be achieved. Thereby the efficiency cost can be effectively reduced.