Research On Performance Evaluation Of A Company’s Working Capital Management Based On Value Chain

The sudden spread of the new crown epidemic to the world,and the home appliance industry was inevitably affected,and the overall performance was not good.Offline sales have cooled,and the degree of competition in online sales has increased,resulting in a series of problems in the home appliance industry,such as high inventory,high revenue,and low profits,which seriously affects the turnover of corporate working capital.Therefore,it is necessary to conduct comprehensive,systematic and reasonable performance evaluation research on working capital management,but the traditional method has various shortcomings and cannot truly reflect the integrity and scientificity.Taking each link in the internal and external value chain of the enterprise as the research perspective,it can comprehensively understand the company’s working capital management level,promote the improvement of the performance evaluation system,and help enterprises optimize the management of working capital to cope with the opportunities and challenges of the"post-epidemic era".This paper takes Company A,a representative enterprise in the small household appliance industry,as the research object,first discusses the current situation of its working capital management and performance evaluation methods,and finds that there are many problems in the current performance evaluation methods.In view of this,this paper starts from the perspective of the value chain,starting from all links of the internal and external value chains,including procurement,production and sales.In the supplier and customer links,a total of 12 indicators,including 3 non-financial indicators,were selected to build a new working capital management performance evaluation system,which was applied in Company A.The study found that there are four problems in the working capital management of Company A:poor information communication and low raw material turnover;the production plan is out of touch with the reality,and the investment in R&D is insufficient;The credit sales situation is serious and the marketing channels are blocked;the relationship with suppliers and customers has not been properly handled.In response to the above problems,put forward relevant suggestions to improve performance from the internal and external value chains,They are:1.Strengthen the coordination of production processes and establish an information sharing system;2.Improve R&D and innovation capabilities to meet consumer needs;3.Optimize marketing channels and build their own online channels;4.Establish high-quality supplier relationships and implement classified management;5.Strengthen strategic cooperative relations with retailers and distributors;At the same time,it is proposed that the operation of the evaluation system can be guaranteed by improving the institutional system and implementing the concept of value chain.Finally,it is hoped that trough the research of this paper,it can provide useful ideas and enlightenment for peer enterprises,assist them in designing a scientific and reasonable performance evaluation system,improve the performance level of working capital management,and prepare for more sustainable development and competitive advantage after the pandemic is over.