Optimization Of JT Working Capital Management From The Perspective Of Value Chain

Working capital management is an important part of enterprise financial management,and its management efficiency determines the size of enterprise value.For enterprises,working capital has the characteristics of strong liquidity and is distributed in various production and operation activities of enterprises,which has a decisive impact.In recent years,the policy guidance and the endogenous demand under the background of two-wheel driven,traditional Chinese medicine(TCM)industry market size showed steady growth trend,each enterprise in order to obtain a bigger share of the market,to expand in succession,leading to increased competition in the industry,in the face of fierce competition,enterprises must improve self value and efficiency,in order to gain a competitive advantage,at this time,Efficient working capital management is more conducive to achieving the goals of enterprises.However,with the gradual formation of a complete industrial chain in China,the traditional working capital management method based on the analysis of a single capital project is difficult to meet the needs of enterprises for working capital management.Therefore,this paper,based on the value chain perspective,integrates capital and business,analyzes the efficiency of working capital management,which not only makes up for the deficiency of the traditional way,but also provides a new idea for enterprise working capital management,which is conducive to the healthy development of Chinese medicine industry in China.This paper takes JT Company as a case study,analyzes the current status of its working capital management from the perspective of value chain,finds its existing problems,and puts forward optimization suggestions.Firstly,through the study of domestic and foreign literature,the research background and significance of this paper are elaborated,and the working capital management theory based on value chain is sorted out,which lays a theoretical foundation for the subsequent research.Secondly,ratio analysis method and comparative analysis method are used to analyze the working capital management status of JT Company based on the financial data of JT Company from 2015 to 2020 and compared with the industry average.It is found that JT company has the following problems in working capital management: not making full use of funds from upstream suppliers;Production efficiency needs to be improved;Overstock of finished goods inventory;Financial activities working capital management strategy is more radical;A wide range of suppliers;Slow collection of receivables;Customer credit information management and maintenance is not in place.Finally,the corresponding optimization scheme is put forward: reasonable use of supplier funds;Establishing a new digital production base;Strengthen the coordination of marketing channels;Changing the focus of investment;Maintain stable cooperation with suppliers of core raw materials;Improve the customer credit management mechanism,increase the supervision of receivables.This research is beneficial to improve the efficiency of JT company’s working capital management on the one hand,help them gain a competitive advantage in the market,provide strong support for the realization of the value maximization,on the other hand enriches the perspective of value chain analysis of working capital management theory,for enterprise’s working capital management provides a new way of thinking of Chinese medicine.