Research On Working Capital Management Of AB Machinery Manufacturing Company Based On Value Chain

If an enterprise is compared to the human body,then working capital is the circulating blood all over the body.The management of working capital is increasingly becoming the core and the main roll of corporate financial management.However,at present,China’s small and medium-sized manufacturing enterprises are in a situation of "advance and retreat" due to poor internal management and intensified external competition.Small and medium-sized enterprises have not yet formed a sufficient understanding of working capital management,so that they do not pay enough attention to working capital management,their management methods are single,and their management effects are not good.At the same time,in the red tide of China’s vigorous development of the manufacturing industry.Market competition in the manufacturing industry is becoming increasingly fierce,with homogeneous and low-end appeared in industry products.The competitiveness of the enterprises has seriously degraded.Therefore,enterprises should not only strengthen the emphasis on working capital management,but also need to find a more efficient and prominent working capital management model to improve their core competitiveness.The working capital management model based on the value chain is an innovative management model.It regards all the effective activities of the enterprise in a business cycle as a whole,analyzes the value-added links in the whole chain and optimizes and upgrades.Make enterprises achieve the goal of maximizing value.The concept of value chain management makes suppliers,enterprises and customers an organic whole,optimizes the resource allocation of each link of the enterprise from a strategic perspective and an overall level,enhances the company’s capital turnover efficiency and capital liquidity,and ultimately improves the overall strength of the enterprise,To realize the value-added of the enterprise.This article takes AB Machinery Manufacturing Company as the research object,deeply analyzed the problems in its working capital management,and puts forward corresponding improvement suggestions and safeguards from the perspective of the value chain.It is expected to bring certain reference significance for AB machinery manufacturing company and small and medium sized manufacturing enterprises.This article is divided into six parts:The first part gives an overall overview of the research background,research significance,domestic and foreign research progress,research ideas,research methods and so on.The second part summarizes and introduces the working capital management,value chain management,and the relationship between working capital management and value chain relationship.The third part introduces AB Machinery Manufacturing Company’s profile,organizational structure and overall financial status.And then the company’s working capitalmanagement status has been analyzed.The final of this part summarized the feasibility and necessity of AB company working capital management based on the value chain.This chapter pave the way for a more in-depth analysis of the company’s working capital management.The fourth part is the analysis of the working capital management of AB machinery manufacturing company based on the value chain,as well as the analysis of existing problems and reasons.First,the chapter analyzed the company’s internal and external value chains.secondly,it compared AB company with the industry’s outstanding enterprises,Shanghai Mechanical and Electrical Industry;finally,this part drew out the problems and causes of AB Machinery Manufacturing Company’s working capital management.The fifth part proposes improvement suggestions and safeguard measures for the problem.The sixth part summarizes the full text and draws a conclusion: The value chain-based working capital management model is beneficial to the long-term development of AB Machinery Manufacturing Company.This mode makes AB Machinery Manufacturing Company pay more attention to the management of working capital,enhancing the turnover efficiency of working capital,optimizing the capital ratio.The management model realize the vision of maximizing corporation value.At the same time,it can also be used as a reference for other manufacturing companies.