Research On XD Company’s Working Capital Management From The Perspective Of Value Chain

Against the backdrop of the global financial crisis and economic slowdown,enterprises are facing increasingly fierce competition.An efficient and secure working capital management model is important to maintain competitive advantage and maximize their value.The manufacturing industry is a pillar industry,and home appliance manufacturers,as an important part of the home appliance industry,involve huge logistics and capital flow,purchase a wide variety of raw materials and components,and have a wide range of customers,which makes the enterprise’s capital occupation and material supply extremely complicated.Therefore,good working capital management and reduction of idle and over-occupied funds are the core of improving the efficiency of appliance industry chain management.The traditional static working capital management mode mainly analyzes the financial indicators of individual items,which is no longer suitable for the needs of dynamic management in the segmented market.Value chain-based working capital management expands the scope of research to specific business activities,grasps the use of working capital in each link of enterprise business activities as a whole,and integrates enterprise resources to achieve a dynamic balance of working capital management.Under the background of the epidemic and economic slowdown,how to manage working capital safely and effectively and master modern working capital management methods quickly is an important topic of enterprise working capital management.Using a combination of normative research and case study,this paper combs through relevant domestic and international literature,takes small home appliance XD company as an example,introduces the development history,organizational structure and financial status of the firm,and describes the current state of corporate working capital management from a value chain perspective.By comparing the working capital turnover with that of the same industry,we analyze the working capital turnover efficiency of the internal value chain,the relationship with suppliers and customers in the external value chain,and find the problems of working capital management in XD small home appliance company: uncoordinated supply and production channels,high pressure on inventory management;high accounts payable and over-utilization of suppliers’ funds;high proportion of current assets and low working capital utilization efficiency.Low working capital utilization efficiency,etc.This paper summarizes the defects of working capital management based on the value chain theory in the light of the operating characteristics of XD small home appliance company,and proposes targeted and operable improvement suggestions for each link in the internal and external value chain,concluding that the company can improve the working capital management model by digitally empowering inventory management,expanding sales channels,reengineering the procurement process and strengthening supplier management,strengthening the product development process and brand building,etc.The company will improve the working capital management mode to ensure the effectiveness and safety of working capital management.