Research On S Company's Working Capital Management Based On Value Chain

Working capital is the basic guarantee for the operation and development of an enterprise.Managing the working capital is essential to the survival and development of the enterprise.Most of the traditional working capital management is based on the research of the best holding amount and turnover speed of a single fund project.It is disconnected from the business process,which splits the integrity of working capital management and is difficult to adapt to the needs of enterprises under fierce competition.The working capital management based on value chain can link the working capital management and business process,a more comprehensive system,not only helps to play the synergy effect of integration,but also effectively makes up for the shortcomings of traditional methods.Combining value chain thinking with enterprise working capital management provides a new way of thinking for enterprises to manage working capital,which is helpful for enterprise management to meet the needs of social development.This article takes S Company as a case object,studies the current status of its working capital management from the perspective of the value chain,and combined with the actual situation,analyzes the problems and causes of its working capital management,and proposes improvement measures.First of all,the research background and significance of this article are elaborated.The relevant theories of working capital management based on the value chain are summarized by combing the relevant literature at home and abroad;secondly,the comparative analysis method is used to take the financial data for the six years from 2013 to 2018.Based on the analysis of the current status of S company's working capital management from the perspective of the value chain,combined with the actual situation,it is found that the following problems exist in working capital management:relatively high raw materials,large accounts payable,long R&D production cycle,and slow capital turnover 1.Accounts receivable account for a relatively large amount and have a long recovery cycle,excessive product production and limited marketing channels,resulting in a serious backlog of commodities,more dispersed suppliers,and greater dependence on the top five customers for sales.Finally,in response to the above problems,combined with the company's development strategy,put forward improved countermeasures:establish a good information sharing mechanism,reasonably use the business credit of accounts payable,optimize the production process,establish an information sharing system,and conduct research and development based on customer needs,strengthen Management and control of accounts receivable,strengthen marketing channel synergy and offline channel construction,joint suppliers to optimize inventory management,implement supplier classification management,strengthen support for core suppliers,and strengthen cooperation with customers and distribution Business partners' strategic partnerships,etc.Through the research in this article,on the one hand,it helps to improve the working capital management level of S Company,and provides strong support for its better participation in market competition and the maximization of corporate value.On the other hand,it also hopes to give other companies in the same industry Provide reference and help.