Research On Working Capital Management Based On Channel Management Of Shenye Machinery Company

Although the role of working capital management is becoming more and more important, it has not attracted enough attention from management personnel among enterprises. According to current situation, most of their work is centered on accounts receivables and inventories, and many enterprises consider their situation in terms of capital payment risk and revenue from the perspective of finance, over relying on adopting quantified method to control working capital. The view of this thesis is that we could set out from the perspective of operation and conduct further analysis on working capital, which means to dig out each section of enterprise operation, such as keeping track of the flow of capital, researching on how to construct a more effective channel network among various sections, choosing proper way of production so as to stimulate the efficiency of capital flow and avoid needless occupancy of capital, with an aim to comprehensively manage finance and business and improve application capacity.Taking Shenye Machinery Company as research target, this thesis first introduces the background of this company and its organizational structure and financial management mode. Then it conducts analysis on the overall structure of Shenye Machinery Company’s working capital and its principal project management, pointing out shortcomings in terms of management analysis, presenting an actual situation of the working capital management in this company. Further, based on channel management method, it studies and comments on working capital management of this company, and by applying relevant theory of channel management, it redistributes the working capital and unveils the problems in its working capital management, which means excessively squeezing suppliers, the high level of product inventory and difficulty in recollect receivables. The thesis studies the reason for mentioned problems, which is due to neglect of consideration of the relationship between up and down stream channel and failure on information sharing as well as outdated traditional production method and lack of concept of customer-focused. Lastly, by combining the analysis result of above, it proposes to adopt channel management method into specific strategy of this company, and by completing the channel network, to build up relation-type channel relationship with suppliers, to adopt on-time produce method, to apply new channel management method, such as increasing cooperation with customers to improve the efficiency of capital turnover and reduce capital deposition, so as to achieve the purpose of improving working capital management level.This thesis combines channel management and working capital management together, with an aim to create a different way of working capital management as compared with tradition. In fact, scientific working capital management requires enterprise to integrate business process and its external environment, taking channel relationship as starting point, to estimate target efficiency and effect from scientific perspective and to maximize enterprise value by comprehensively applying supply relevant theory and methods on chain management and customer relationship management.