The Komanda Company Credit Management System Optimization Study

In the fierce market competition, for many businesses, it is essential to credit sales. How to avoid the risk of bad debts and maximize the market opportunities is a very important factor of surviving and success. Through the establishment of reasonable credit management system to improve and implementation Kennametal Company used to simply copy its oversea headquarters credit management system, but because of differences between countries, and the actual effects of application are unsatisfactory. This paper attempts to research and analyze theories of credit management, count into the factors of internal and external physical environment of Kennametal, and try to make a diagnosis, in order to design a more reasonable credit management system for Kennametal.This paper firstly outlines the research background of this study, literature review and research ideas and methods. In the literature review, it's about the introduction of specific domestic and international credit management research. Then it gives definitions of the word CREDIT and CREDIT MANAGEMENT, and discussed the concepts and basic theories related to the definition. Then the main credit management system and a comparative analysis of theory, and this article focused on -the financial-based credit management system is discussed in detail. On the basis of above theories and concepts, it made a diagnosis to the current credit system of Kennametal, mostly focus on credit management system of the existing organizational structure and business processes, analyze the advantages and disadvantages of the current system, explains why the US transplanted credit management system suffered an " environmental inadaptability "problem and the solution leads to the basic idea. Chapter IV mostly focuses on the design of the management system, first of all, states a new credit system and control of the key points of the goal and gave details of the new management system at the organizational structure, business processes, so that operability stronger. Finally, this thesis made a summary about further enlightenment and sum up the problem.This thesis offered an applicable solution to the similar cases among other enterprises and can be a good reference for the other companies to create their own credit management system.