Research On Working Capital Management Of A Company Based On Value Chain

Working capital is the basis of enterprise production and management.In the "cash is king" in the modern economic society,working capital is the basis for the survival and development of enterprises,therefore,the importance of working capital management for enterprise management is self-evident.Plastic industry is a typical manufacturing industry,the operating efficiency of enterprises by the upstream suppliers,downstream customers significantly.However,with the upstream suppliers,downstream customers in the communication with a variety of contradictions,the enterprise value chain logistics,capital flow,information flow presents a serious challenge.In modern society,the relationship between enterprises and suppliers,customers can not be simply defined as the zero and the game,"supplier enterprise customer" should be regarded as the benefit sharing,information sharing as a whole.The results show that the effectiveness of working capital not only affects the liquidity and profitability of the enterprise,but also has a great relationship with the value of the enterprise.However,the current working capital management only focuses on the internal management of enterprises,only reflects the efficiency of capital operation within a single enterprise,while ignoring the efficiency of working capital in the transfer of external activities.Pay special attention to the management of specific projects,such as inventory,accounts receivable turnover efficiency,ignoring the entire value chain coordination.At present,most of the working capital management of enterprises only from the traditional reporting data to calculate the traditional indicators,this management model is far less than the requirements of modern enterprise management.Based on the above understanding,this paper studies the working capital management of A company based on the value chain.This paper first describes the background and significance of the topic,the related literature at home and abroad are reviewed,expounds the value chain based on working capital management theory,introduces the research methods and research contents;secondly,introduces the implementation of A management model based on value chain,this paper introduces the basic situation of A company;thirdly,through the analysis of A company the working capital management performance evaluation and industry,the existing working capital management problems of A company;then,to provide suggestions for improvement of working capital management in A company;finally,a summary of the full text.The innovation of this paper is to start with the existing problems of A company's working capital management,to carry out the analysis of working capital management of A company,and to put forward some suggestions on the improvement of working capital management from the perspective of value chain.Through the analysis,this paper argues that the A company's working capital management problems including: raw materials occupy the working capital,accounts payable management ability is insufficient,contradiction of product,a commodity occupancy of working capital is serious,accounts receivable management ability is insufficient,serious occupation of finished goods inventory working capital.Therefore,to achieve the effective working capital management,it is necessary to value chain ideas into one,examining the relationship between the upstream and the working capital of enterprises from the strategic point of view and downstream between upstream and downstream,improve management.Through the study of this paper,I hope to provide some reference for the reform and innovation of the working capital management of Chinese plastic manufacturing enterprises.