Research Onthe Working Capital Management Of FH Company Based On The Value Chain

With the rapid development of China’s economy and enhancement of awareness of energy conservation and environmental protection,China’s door,window and curtain wall industry has developed rapidly driven by real estate industry.China’s building curtain wall industry has realized leap-forward development from scratch,from foreign capital to domestic enterprise dominance,and from introduction of imitation to independent innovation.At present,the number of China’s large and medium-sized door,window and curtain wall enterprises are about ten thousand,and the output value is more than six hundred billion RMB.However,with the intensification of market competition,enterprise management and difficult realization of profit targets.In this case,how to practice internal skills to strengthen the management funds,reduce the occupancy funds and production cost has become the core content to improve the economic benefits of enterprises.Working capital is the difference between current assets and liabilities of an enterprise,and its amount has a great impact on production and management performance of an enterprise.If the amount of inventory and accounts receivable of the enterprise is large and the amount of funds occupied is too much,it will inevitably lead to the increase of the enterprise’s loans and payable items,which will lead to the increase of the enterprise’s capital cost and bad debt loss,insufficient cash flow,and more serious will lead to the rupture of the company’s capital flow,bankruptcy.FH company is a provider of building energy saving,intelligent,photovoltaic,door and window curtain wall systems integrating research and development,design,production and construction.It is a national key high-tech enterprise,an industry AAA credit enterprise,one of the top 50 curtain wall industry in China,and one of the listed enterprises of "China Home Furnishing Industry Influential Brand".With more than30 years of professional experience,FH has accumulated profound industry experience and technology in the field of building energy conservation and new energy utilization.The company has laid out more than 20 production bases throughout the country,and set up subsidiary companies and offices in many large and medium-sized cities.It has reached perennial strategic cooperation with Vanke,Country Garden,Poly and other top 20 companies in China.Its self-branded products have been exported to Australia,Middle East,Southeast Asia and other regions.Based on the actual production and operation of FH company,this paper firstly analyzes the working capital management status of the internal value chain of FH company.Then,through the analysis of upstream suppliers and downstream customers,the working capital management of FH company based on the external value chain is studied.Finally,in view of the FH company luck the camp of the defects in the management of funds,puts forward some suggestions for improvement and optimization measures,such as perfecting the purchasing mode,establish strict production management system,improve the inventory management system,and refinement of sales management,explore new models of windows and doors curtain wall retail Internet sales optimization FH corporate capital structure,it is expected that the suggestions of these optimization measures can have certain reference value for FH company to improve the working capital management level,and promote the stable and healthy development of FH company.