Research on Working Capital Management Performance of Wuliangye from the perspective of supply chain

Abstract

During the process of the firm's continuing existence and expansion, the working capital of the enterprise, which is the most liquid asset of the business, plays a critical part in the process. The liquor industry has been under the simultaneous strain of market consumption structure upgrade and overcapacity in recent years. Both of these pressures have been a challenge for the sector. As a consequence of this, the amount of competitiveness that exists within the industry has recently increased. Therefore, the industry needs to leave its old way of thinking, which focuses on the management of its internal working capital, and instead pay more attention to the performance that is brought about by coordinating with important firms in the supply chain. This is because performance is directly related to the efficiency of the supply chain. Using Yibin Wuliangye Co., Ltd. as the research object, this paper first examines the internal structure of the company's working capital, then, from the perspective of the supply chain, from the procurement, production, and sales of three links, conducts an in-depth analysis of the status quo of the company's working capital management, discovered that Wuliangye in the management of the working capital of the three links of the problem of occupying too much of the funds of the suppliers, higher production costs, and the reduction of contractual liabilities. In conclusion, it provides targetedrecommendations for optimisation with the purpose of enhancing Wuliangye's capability to adequately manage its working capital and promoting the long-term growth of the company.