Study Of The Working Capital Management In The Supply Chain Of Chang'an Automobile Corp

In recent years,Chinese automotive enterprises have been faced with a grim reality:after experiencing rapid development for years,the automotive industry of China is witnessing a slow-down in its growth.What is worse,China is set to relax the limits placed on the proportion of foreign-owned shares in Chinese businesses at an early date,especially in the automotive industry;China will significantly lower import tariffs on automobiles.All of those factors will undoubtedly further add to the difficulties that fledgling Chinese domestic automotive makers face in their development.in face of such challenges,only by enhancing competitiveness and improving management can Chinese automotive manufacturers hope to achieve further development down the road.in the process,working capital,as the most dynamic part of an enterprise's assets,is considered to be the "blood",as it were,of the business enterprise,circulating in all of the enterprise's business activities,as well as the financial assets with the greatest degree of liquidity and readiness for turnover in the daily operation of the enterprise.in view of this,the quality of working capital management can determine the success or failure of an enterprise's operation to a certain extent.More specifically,the automotive industry features a long industry chain that involves numerous industrial sectors,including research&development,production&manufacturing,Sale,and logistics services,among others;the management of supply chain is becoming more and more important in business management,as the development in network information is bring core enterprises increasingly closer to their upstream and downstream enterprises in the era of "Internet Plus".In view of the above developments,this thesis is based on a case study of Chang'an Automobile,the top performer among China's four leading automobile manufacturers in terms of the development of indigenous Chinese brands,on the basis of theories of supply chain management,working capital management and an integration of the two.This thesis starts with an overview of Chang'an Automobile and the current state of its supply chain development;in the subsequent section,Chang'an Automobile's working capital management in the latest five years is analyzed from the perspective of the three aspects of the supply chain,namely,procurement,production and sale,on the basis of the re-classification of working capital proposed by Professor Wang Zhuquan,and the results of such analysis are compared against the average figures of the auto industry as a whole.After that,detailed analysis is carried out regarding the problems identified in such analysis,and suggestions are proposed for the procurement,production and sale aspects of working capital management of Chang'an Automobile's supply chain,and ideas as to how to establish an index evaluation system are also put forward.Through the case study of the working capital management of Chang'an Automobile's supply chain,it can be inferred that applying supply chain management to enterprise working capital management is a more comprehensive and systematic approach to working capital management,which is conducive to improving Chang'an's capabilities of working capital management and further enhancing the business competitiveness of Chang'an;such an approach will also provide valuable inspiration to the studies on the working capital management of the supply chains of other automobile makers.