Optimization Of Working Capital Management Of ZX Medical Company Based On Value Chain

Working capital is vital to the survival and development of enterprises.The correct use and management of working capital can help enterprises avoid risks and improve their profitability.The traditional working capital management is the single management of each element,it is difficult to analyze the working capital operation status and problems of the whole link of the enterprise.The study of working capital management based on value chain is analyzed from two parts: internal value chain working capital management and external value chain working capital management.The internal value chain working capital management is studied from the procurement,production and sales of the enterprise,while the external value chain working capital management is studied from the upstream suppliers and downstream customers of the enterprise.The study of working capital management based on the value chain takes each link of the value chain as the object of the study of working capital management of enterprises.By optimizing the working capital management of internal and external enterprises as well as upstream and downstream value chains,the working capital management system of enterprises can be improved and the profitability of enterprises can be improved.Taking ZX Medical Company as the research object,this paper studies the working capital management of enterprises from the perspective of value chain,analyzes the existing problems and reasons of the working capital management based on the value chain combined with the specific situation of ZX Medical Company,and puts forward appropriate improvement strategies.Firstly,related concepts and theories are summarized.Secondly,it introduces the development of the industry and the relevant situation of ZX Medical Company,including company profile,business status,and the size and structure of the company’s working capital.Then,according to the working capital management theory of the value chain and the relevant research results of scholars at home and abroad,it describes the internal and external value chain composition of ZX Medical Company,and analyzes the current situation of working capital management according to the internal and external value chain.Thirdly,the entropy method is used to evaluate the working capital management level of ZX Medical Company based on the value chain.According to the research,it is found that in terms of internal value chain working capital management,ZX Medical Company has problems such as excessive use of raw material capital,insufficient R&D investment and overstock of goods.In terms of external value chain working capital management,ZX Medical Company lacks maintenance and management of suppliers,and its slow turnover of accounts receivable.Finally,In terms of internal value chain,ZX Medical Company can strengthen the cooperation among various departments to reduce raw material inventory,increase R&D investment,dredged the upstream and downstream of logistics,and reduce the inventory of goods;External value chain can strengthen supplier management,accelerate the collection of accounts receivable.ZX Medical Company was founded in 1951,is an old pharmaceutical manufacturing enterprise,typical in the pharmaceutical manufacturing industry,ZX Medical Company based on the value chain working capital management research for other pharmaceutical manufacturing enterprises to study working capital management has a certain reference and practical significance.