Research On JY's Operating Capital Management Based On Supply Chain Perspective

In recent years,countless copper processing industries have been acquired due to the lack of funds.As highly indebted enterprises,the improper management of working capital of these enterprises has led to their fate of bankruptcy,and working capital management is the most powerful way to maintain the vitality of funds.The traditional factor-based working capital management lacks the consideration of the relationship between working capital and supply chain,the study of working capital management from the perspective of supply chain has practical significance for copper processing enterprises.The paper uses the literature research method,the investigation research method.Firstly,the financial status of Jy company is studied,and its working capital is analyzed.Regarding the procurement channels,the working capital turnover of Jy company has remained positive for a long time,the funds are occupied by suppliers,the ability to raise funds from accounts payable is poor,the proportion of prepaid accounts is too high and the procurement cost is high;regarding the sales channels,in JY company,the velocity of capital turnover tends to decrease,and there are some problems such as the accumulation of finished products and high pre-paid accounts.Secondly,the supply chain of JY company is analyzed.JY's positioning is as a processing enterprise.The company's upstream,is a copper mining enterprises,its business is the copper concentrate after casting,pickling,stretching,made of cathode copper.According to the analysis,JY company has a strong dependence on suppliers,which is manifested in the high degree of supplier integration,and the procurement ratio of the top five suppliers is 60%.In advance payment,the first three big suppliers occupy the quite high,has affected the payment way.In addition,the status and scale of the suppliers are relatively high,and the main suppliers of the company are all large-scale metal resources enterprises,resulting in higher procurement costs for Jy Company.The downstream enterprises of JY company are rich in types,including automobile manufacturing and electromagnetic wire manufacturing.According to the analysis,the degree of Jy Company's cooperation with clients has a declining trend,the number of clients has dropped,and the trading volume of the top three clients has dropped.The company's products can not meet customer demand,the main products for the bare copper wire and low-oxygen light rod,lack of diversity,lack of end-user preferences for high-end products.In addition,overseas,JY's supply chain financing has declined.In recent years,the company and the bank's cooperation intensity drops,the financing scale reduces.All of these factors have led to the company's working capital problems.At last,the thesis puts forward some suggestions for JY company to optimize the working capital from the perspective of supply chain,and tries to solve the problems from a practical point of view: increasing the diversity of suppliers and involving them in inventory management;Deepening Jit production and increasing the diversity of enterprise products;sharing market information with customers to speed up inventory turnover;developing overseas suppliers and paying attention to International Monetary Policy;establishing bank-enterprise alliance.At the same time,the thesis also hopes to provide copper processing enterprises with working capital management experience,improve working capital management and use efficiency,ease the pressure of funds.