Research On Improving The Working Capital Management Performance Based On E-commerce Business Model

The working capital management is one of the important contents of financialmanagement. In recent years, the academic research on working capital managementbecomes gradually matured. Experienced from elements detail management tochannels overall management, the research of working capital management always incontinuous improvement. And now, the philosophy of improve working capitalmanagement performance by optimizing the supply chain and channel management isgrowing concerned, it’s help to solve the problem of working capital management. Asa sudden emergence of new business model, e-commerce in our country is currentlyin rapid development and fast-growing market transaction size, the growthmomentum will be maintained. E-commerce optimizes the allocation of resources toimprove the business systematic and efficient operation. Tempted by e-commercemarket pie, with changes in consumer shopping trends, traditional companies begin toseek opportunities for e-business transformation. However, relying on thecharacteristics such as the efficiency of transactions, dynamics and system structural,the requirements of e-commerce on the information flow, capital flow and logistics areextremely high. What’s more, advanced concepts of supply chain, channels, customermanagement, inventory and other aspects will form a great impact to traditionalenterprises undoubtedly. Moreover, in the face of economic challenges ofglobalization, in order to improve working capital management performance, workingcapital management has been gradually turning to the overall management, which isbased on supply chain, channel management and customer demand-oriented.Therefore, combined with the transformation of traditional companies to e-commercemodel and the important of working capital management, the thesis try to find a wayto use e-commerce business model in supply chain and channel management toimprove working capital management performance, and changes the managementphilosophy specific circumstances and environmental conditions in time. In a word,reasonable to raise working capital to promote a more healthy and sustainabledevelopment has become important requirement to adapt to the era of e-commerceresearch.This thesis uses systems analysis and case study method. Analyze various factorsinfluencing the performance of working capital management in order to provide a theoretical reference of improving working capital management performance. On thebasis of previous research, this thesis identifies problems, analyze and summarize thereasons of them by studying the cases. The case study linked to the earlier theory toachieve the integration of theory and practice.By analyzing working capital management development status andcharacteristics, this thesis research the impact of e-commerce and the role of thetraditional supply chain, channel management, and logistics systems from theperspective of e-commerce. Combined with the characteristics and advantages of thenew business model, this thesis aims to find a way to improve the traditionalcorporate working capital management performance, so as to achieve sustainable andhealthy development. The research shows that, the application of e-commerce inChinese traditional business is still in its early stages. Due to the lack of appropriateinformation flow, capital flow and logistics management, there are obviousdiscrepancies between the current operating conditions of e-commerce and expectedefficiency. This thesis provide measures to preserve and improve working capitalmanagement performance through four aspects, such as strengthening suppliermanagement, customer management, promote the integration of online and offlinebusiness and regulatory policies. Besides, this thesis provides advanced concepts,which is different from the concept of working capital management performancebased on traditional trading model. This thesis provides a theoretical reference for ourtraditional business to e-business transformation process of working capitalmanagement, experience and inspiration.