The Study Of Working Capital Management Pattern Based On Channel Management

Excellent working capital management is a necessary condition for the survival of a business. Through working capital management, not only can we control the funds needed for maintaining the normal turnover of the production and business activities, but also improve working capital utilization levels and liquidity continuously under the premise of taking full account of corporate financial security, reducing the working capital cost of ownership, improving the overall profitability. The research of most scholars at home and abroad on working capital management have been focused on the control of the money funds, accounts receivable, inventory and other individual projects and working capital's raising and holding areas, which are closely related to the quantitative control of some projects in working capital and for the financial perspective trade-off the risk of raising and using working capital in financial management. In recent years, supply chain management, channel relationship management and customer relationship management, are widely used to promote the performance of working capital management in businesses. The methods of traditional working capital management have been difficult to adapt to the requirements of modern business management. Therefore, we should on the basis of the reclassification of working capital, combining the working capital management with business operations, absorbing modern management concepts and methods, establish a new working capital management pattern for the development of modern enterprises.In this paper, the research methods of the literature analysis, specification analysis, case studies will be used. We make a comprehensive collection of reference materials about working capital management, supply chain management, channel relationship management, customer relationship management. On the basis of analyzing the domestic and international working capital management theories, we summarize three existing working capital management patterns. On analysis of existing working capital management models, integrated with the relevant concepts and methods of modern management, we establish a new working capital management model based on channel management. To verify the application of this new management model in practice, we carry out case studies by screening the listed companies of household appliances. By evaluating the level of the industry working capital management, we verify that the industry representative-Haier's working capital management pattern is consistent with the model our have built.We take the reclassification of working capital by channel relationship as the starting point in this study, combining the working capital management and business process management, presenting a new working capital management pattern, which focus on channel management, using project management in various channels, seizing the overall structure. We build such a model by using of supply chain management, channel management, customer relationship management and financial management theory and methods. This model combines the merits of existing working capital management pattern, in accordance with the classification based on channel relationships, by improving business processes with the corresponding channels and combining project management to important projects of each channel with structure management to the overall working capital, analyzes various ways to improve working capital management, which helps us to solve the problems of working capital management in enterprises. Through case studies we have fully confirmed the feasibility and effectiveness of this management model in practice, which provides practical guidance to Chinese enterprises that can learn from. We hope that this paper will serve as a trigger for working capital management research.