Cost management at the enterprise

Abstract

The qualification work examines the theoretical and methodological foundations of enterprise cost management. The first section of the work examines the issue of cost management effectiveness as a key factor in achieving competitive advantages by an enterprise. The main strategies of competitive advantage according to Porter (cost leadership, differentiation, market focus) are considered and the role of an effective information system in their formation and implementation is emphasized. The cement industry of Nigeria, where Dangote Cement demonstrates cost leadership due to economies of scale and optimization of the energy mix, which is confirmed by its significant financial indicators and dominant market share compared to competitors (BUA and Lafarge)., The economic and financial indicators are analyzed, and the current situation of cost management is analyzed in Dangote Cement Plc, the leading cement company in Sub-Saharan Africa. The general characteristics of the organization, its strategic position and operational activities are considered. Dangote Cement is characterized as the largest cement producer in the region with a production capacity of over 52 million tons per year, integrated plants and an extensive distribution network in 10 African countries. The company has successfully implemented a cost leadership strategy through high production efficiency, vertical integration (from quarry to consumer), which ensures price control and supply chain optimization. Its commitment to sustainable development principles and social initiatives is also highlighted. Dangote Cement’s cost management system was determined to be highly effective, allowing the company to maintain its market leadership position, ensure profitability and operational efficiency despite external challenges. Key recommendations include the establishment of a cross-functional cost optimization working group, setting clear goals, implementing a digital cost management system, regular monitoring and reporting, engaging external experts and actively engaging employees at all levels. Separately highlighted are proposals for transport and logistics costs, including the implementation of advanced TMS, route optimization software, fleet utilization audits, fuel management systems, rail/water transportation utilization, and 3PL outsourcing.