Optimization Of Working Capital Management Index System Studies Based On The Theory Of Channels

Working capital management is very important to the enterprise. The correctevaluation system plays a significant role on enhancing the management level ofworking capital. With the development of application and theory on chainmanagement、channel relationship management and value chain management, theresearchers realize that these application and theory can make a new breakthroughto working capital management research. However at present there are so manydisadvantages on its evaluation system.It is really necessary to improve Evaluationindex system.The documents analysis, normative analysis and the case study method are usedfor this paper. Firstly, Review the situation of working capital management andanalyze the related management theories-the theory of working capitalmanagement、value chain、supply chain relationships and channel managementtheory. On this basis, this paper opens a new Angle for the content and objectivesfor working capital management, which should not only concern about their ownworking capital items, but also pay attention to factors that impact the workingcapital management level base on the operating activities. Managers shouldconcern about liquidity of working capital as well as their coordination andvalue-added nature on different channels. Secondly, with analysis of the advantagesand disadvantages of existing working capital evaluation, this part conductsresearch on the principles and steps on the optimization evaluation system ofworking capital management, puts forward new ideas of how to improve the Evaluation system based on the theory of channels. Finally, this paper buildsoptimization index system which can reflect liquidity、 coordination andvalue-added nature of the working capital on procurement channels、productionchannels、marketing channels and investment activities.This paper has outstanding research achievements. Firstly, opens a new Anglefor the content and objectives for management, Manager should concern aboutliquidity of working capital as well as their coordination and value-added ondifferent channels based on the theory of channels. Secondly, build and optimizeindexes to evaluate coordination of working capital. By this way optimizedIndicators can be used for evaluating the coordination of working capital betweenbusiness and suppliers or their customers. They can also provide the basis foranalysis the coordination of working capital between the different channels incompany. Finally, build and optimize indexes to evaluate value-added nature ofworking capital. By this way optimized Indicators can be used for evaluatingvalue-added nature of working capital on procurement channels、productionchannels、marketing channels and investment activities.In short, The optimization evaluation system can reflect liquidity、coordination and value-added nature of the working capital on procurementchannels、production channels、marketing channels and investment activities. Theoptimized Indicator system can be operated closer to the actual business processes.It also used by company managers to find the entry point to improve the level ofworking capital management more accurately and quickly.