Research On Working Capital Management Of J Company Based On Supply Chain

Working capital exists in all operation activities of the enterprise.While good working capital management enables the company to develop continuously,stably and efficiently in the industry,poor management of working capital will lead to a shortage of funds for the normal operation.By introducing supply chain management idea into working capital management,the working capital turnover efficiency in the procurement,production and sales increases,and enterprises effectively reduce their financial pressure and improve the profitability.In recent years,the traditional advantages of the textile and garment industry are being weakened.Most companies in the industry have problems of high inventory and uneven production and marketing.Lack of working capital affects the normal operation of enterprises.Therefore,based on the research of related theory,this paper picks J company as an example to explore the situation of its working capital management by using case study method.In the beginning,through critical analysis we found that J company does not have a complete working capital management system and the current working capital management performance analyzing method exists deficiencies.The isolated analysis and individual optimization of the main working capital projects cannot effectively improve working capital turnover efficiency.Therefore,the following part will divide the J company's working capital project into all aspects of the supply chain,re-analyze the performance of the working capital management with the perspective of the supply chain and propose measures to improve the management level of working capital.After detailed analysis,it was found that the working capital of J company's procurement has a short turnover period,mainly because it maintains a good cooperative relationship with suppliers,and guarantees a shorter raw material turnover period through consignment inventory.However,there are still some management shortages in each stage,such as the low concentration of suppliers,the long working period of working capital in production,the pressure of finished goods inventory and the lack of management of accounts receivable.These problems have led to a long working period of the company's overall operating activities.Finally,the paper puts forward the optimization proposal for the management of working capital in procurement,production and sales,implements the C2 B personalized operation mode,pays attention to the coordination of working capital in all aspects of the supply chain,and completely develop the supply chain financial business,which can improve the working capital management level of J company as a whole.These improvements can enable J and the companies in its supply chain to win in the fierce competition between supply chains.