Research On Working Capital Management Of JX Company Based On Value Chain

In an era of rapid economic development,enterprises,as an indispensable part of the economic market,are facing fierce competition in their development.The sudden onset of the Covid-19 virus has brought a fatal blow to the economy,and many SMEs(small to medium-sized enterprise,a company with no more than 500 employees)have to opt out of the market due to a break in their capital chain.How to manage the company’s working capital to ensure the normal operation of the company and how to maximize profits so that the company can stay ahead of the complex and changeable competition are all issues that require companies to be constantly considered and improved.Working capital is one of the core elements of corporate financial management.if the allocation of working capital is not reasonable,it will make the various processes of the enterprise slow.And then it will affect the efficiency of the company’s working capital turnover.Therefore,if the company wants to be in the position of the industry,it is necessary to ensure that the flow of funds will not be broken.According to this situation,the management efficiency of the company’s working capital must be improved with JX will promote the profitability of the company and achieve the goal of corporate financial management.As competition continues to intensify,value chain management theory has been increasingly applied to corporate working capital management and has been recognized by people.Value chain management theory mainly covers the internal value chain and external value chain of an enterprise.By studying various economic activities of an enterprise following the value chain theory,it is possible to scientifically and comprehensively discover the status quo and existing problems of enterprise working capital management.Therefore,this research and analysis method is very necessary.The object of this study is JX Furniture Company located in SY City.Through field research on JX Furniture Company,we can grasp the company’s operating status,and then combine the characteristics of the furniture industry to explore the working capital management of JX Furniture Company based on the value chain.The internal value chain of JX Furniture Co.,Ltd.is analyzed through the procurement process of raw materials such as panels and leather,the manufacturing process of furniture,and the sales process of finished furniture products.Analyze financial transactions with downstream furniture product customers.In addition,a comparative analysis of the working capital status of JX Furniture Company and Gujia Home Furnishing can help JX Furniture Company find the gap between itself and the leading enterprises in the industry more intuitively.Through research,it is found that JX Furniture Company has the following problems in working capital management: the procurement process occupies more funds from external suppliers,the production management is relatively weak,the backlog of finished products is serious,the supplier management system is not perfect,and the customer’s receivables Problems such as slow payment.Therefore,in response to these problems and combined with the current situation of furniture industry in china,the specific solutions proposed are the rational use of accounts payable,the promotion of cost reduction and efficiency improvement in the production process,the improvement of product competitiveness to avoid the backlog of finished products,the improvement of the supplier management system,and the strengthening of Control and management of customer accounts receivable,etc.These measures can help solve the problems of JX Furniture Company in terms of working capital management,so that the company can reduce financial risks and promote better development and growth of the company.