Research On GD Seed Company's Working Capital Management Based On Value Chain

Economic globalization is developing day by day,and the competitive pressure of enterprises is constantly increasing.Regardless of the field,financial management does not undoubtedly play a vital role in the company's operations.Working capital is at its core and provides the necessary protection.Therefore,many companies choose to find a breakthrough in working capital management and strive to stand out from competitors in the same industry.While adapting to changes in the big environment,we will improve our economic strength and thus achieve decisive advantages.The value chain theory that emerged with the changes of the environment has gradually been discovered,practiced and recognized by many companies.First of all,the value chain theory mainly involves both internal and external aspects.The internal analysis mainly analyzes the current situation and existing problems in procurement,production and sales activities;the external is mainly to study the relationship between suppliers and customers.Whether it is analyzed from an internal perspective or from an external perspective,it is an indispensable part of corporate money management.Meanwhile it is very necessary and relatively scientific and comprehensive to analyze the management status of enterprise working capital through the combination of internal and external value chains.This paper selects the research object as the GD seed company located in Liaoning Province.Through the investigation,we can understand the current operation status of GD seed company,and then read the certain literature to understand the use of value chain theory to study the advancement and effectiveness of working capital,so the seed industry is combined.The characteristics of the GD seed company based on the value chain of working capital management analysis,mainly from the internal and external perspectives on the GD seed company 2013-2017 working capital situation.Analyze the company's working capital management issues in procurement,production,and marketing from the perspective of internal value chain.From the perspective of the external value chain,analyze the working capital management issues between GD seed companies and suppliers and customers.Secondly,a horizontal comparison with Denghai Seeds can help GD companies better understand their shortcomings.The study found that GD seed company's working capital management mainly has the following problems: the supplier's account payable efficiency is low,the customer receivables management is not strict,the procurement link management system is not perfect,the production planning is not strong and the equipment investment is insufficient,the inventory There are problems such as excessive backlog of goods.Then the specific measures proposed for the GD seed company and the management status of the seed industry include improving the degree of commercial credit utilization,establishing a reasonable credit sales system,actively improving the inventory management model,improving the coordination of production organization,broadening the product sales channels,etc.It can help GD to improve its working capital management problems and help the company to become a leading seed enterprise in Liaoning Province.