Optimization Strategy For Centralized Management Of Funds In COSCO

With the continuous deepening of reform and opening up, and the development of the market economy, the scale of grouping management in our country's shipping enterprises has been expanding gradually. Meanwhile, specialized transport fleet and supporting professional shipping companies also have been developing vigorously. The routes are throughout the coastal and ocean, forming a large network. With the expansion of the scale, as for the shipping industry which is highly capital-intensive, adequate financial support for its sustainable development is particularly important. Especially, with the gradually spread of financial crisis, the problem of pushing for money increases more pressure to the operation of the enterprise. Under this economic environment, how to optimize the revenue and expenditure, then making the rotation of capital flow smoothly and efficiently, has become a special concern of the enterprise management.Centralized management of the enterprise regards financial management as the centre, and while, financial management centers on centralized fund management, which is regarded as the core in the financial management of large enterprises. it will concentrate funds of the whole group into the Group headquarters, then dispatching, managing and using them untidily, which can manage and control the group's overall capital efficiently, and has an important significance in supporting the enterprise development strategies, establishing a effective risk control system and enhancing the profitability and so on.In July 2000, China Ocean Shipping Group (COSCO) has already established the center of settling accounts of fund, relying on existing business and resource, implementing centralized management of funds within the group, in order to increase the efficiency of fund utilization in the Group. With the rapid expanding of the scale of COSCO, the center of settling accounts, which is a traditional method of funds management control, can no longer meet the needs of that in the modern shipping group, so COSCO needs to change the model of funds management in a deeper level integrating with international norms urgently, learning mature experience from multinational companies, and it has become a necessity that implementing globalization and centralized funds management with the network information.In this paper, I will discuss and analyze centralized fund management of COSCO which I work in from multiple angles, probing into the problems of this method, and learning the effective ways from domestic and foreign enterprises, then bringing forward solutions and suggestions for improvement for COSCO. At the same time, the opinion what I put in this paper will also benefit other enterprises establishing a model of centralized fund management under the modern corporate environment.