The Diagnostic Study Of Working Capital Management: From Channel And Process Perspective

In the background of market economy,the surrounding of corporatevagaries,especially since the global financial crisis.Almost everycompany has fault in working capital management in varying degrees.ashortage of funds and operating inefficiencies are the common problemsthey are facing.The backward of working capital management, not onlycause the waste of money,but also increase the risk of bankruptcy causeby due debts.therefore,diagnosed problems in management timely andaccurately,suit the remedy to the case, perfect operating capitalmanagement diagnosis system, improve the level of working capitalmanagement is necessary.However, the diagnosis of working capital management is still inexploration stage, the existing research field of vision is too narrow,unilateral, most remain in the financial data processing and financialindex analysis level, And did not profound conscious integrationcharacteristics of financial and business, the diagnosis of workingcapital management has no depth to organization, business, process andsystem level, the results of study is very deficient in its scientificand practical. The shortages supply of theory, directly affect the resultsof the diagnosis of working capital management.it is imminent to explorea system and scientific working capital model of diagnose.Above the existing problems of working capital management, this paperputs forward the view from the view of channel and process about workingcapital management diagnosis.Design a set includes financial analysis and business analysis,static analyses and dynamic analysis, model analysis and process analysis,channel analysis and factor analysis in an operating system of workingcapital management of diagnosis. And make the model used in Qingdao aucmagroup in diagnose. The diagnosis found that because aucma group’sinformation construction are not perfect, marketing channel is not sound,the inventory management system is not reasonable, investment and financing structure unreasonable, the production mode disaccord. Leadingto the working capital management many problems, enterprise’s inventoryincludes raw materials, products and finished goods backlog serious,enterprise’s risk is bigger, purchasing and production, sales can noteffectively cohesion. On this basis, we pertinently put forward a seriesof systematic improvement suggestions: the zero inventory management,scale custom and technology innovation, customer relationship managementand capital intensive management and so on.The outstanding characteristics of the diagnosis system of workingcapital management mode and method that based on the view of channel andprocess is out of the traditional financial diagnosis that talk about thefinancial from financial, realize the organic union of the financialanalysis and business analysis, management analysis. So the diagnosis ofproblems can be more thorough, system and reliable, accordingly theproposed improvement scheme also has more targeted, scientific andpractical, and will provide the strong support to diagnosis of workingcapital management.In this paper, AoKeMa is a representative of the company who can showthe characteristics of the diagnosis of the working capital managementfrom the diagnosis of itself.