The implementation framework and path research of interorganizational cost management in supply chain

Roles that accounting practices need to fulfill in an inter-organizational context are different to the level of a single organization. Interorganizational cost management (IOCM) can be defined as buyers´ and suppliers´ coordinated efforts to reduce costs. However, today´s research of IOCM implementation in supply chain is scattered and inadequate. This paper analyzes IOCM circumstance, techniques, and constructs an application framework of IOCM based on accounting information sharing. After analyzing content and prerequisite of accounting data disclosure, the paper proposes an IOCM implementation framework based on product and relation context. Under product life cycle dimensions, IOCM adopt techniques such as Target costing and kaizen in different production phases. Moreover, the paper analyzes three practices regarding how to implement IOCM under relationship extent dimensions.