Optimization Of Working Capital Management Based On Supply Chain Perspective

With the rapid development of our country’s economy and the development of manufacturing industry,the competition between companies is becoming more and more fierce.Combining with the domestic and foreign researches,most of the scholars focus on the enterprises in home appliance industry and construction industry under the perspective of supply chain,and the research on the perspective of supply chain is less.This paper takes Zongshen Power Machinery Co as a case study to compare its working capital management performance from 2017 to 2021 with the industry leading enterprises CFMOTO Power Co,Loncin Motor Co and industry average.Secondly,from the perspective of supply chain,combining with the current situation of supply chain management,this paper makes a deep analysis on the performance of the management of the working capital in the links of purchase,production and sales.First,the performance of the working capital in each link is analyzed,then the specific items of the working capital in each link are analyzed in detail.From the perspective of supply chain,this paper finds that the working capital turnover period of Zongshen Power Machinery Co is shortened and the management level of working capital is decreased in the procurement link,the management level of working capital in the production link is at the medium level,the management level of working capital in the sales link is low,and there exists the problem that the working capital turnover period is too long and occupies too much internal capital,which still lags behind the management effect of the CFMOTO Power Co and Loncin Motor Co of the leading enterprises in the industry.In general,Zongshen Power Machinery Co has the problems of unreasonable utilization of upstream funds and lack of reasonable procurement plan in the procurement link,long turnover period of finished products in the production link and high proportion of other payable in the production link,serious occupation of stock funds and long cycle of accounts receivable in the sales link.Based on the characteristics of the machinery manufacturing industry and the operation of Zongshen Power Machinery Co,this paper analyzes the problems existing in the purchase,production and sales from the perspective of supply chain.