Research On Working Capital Management From The Perspective Of Supply Chain

Under the trend of global integration,the competition among enterprises is becoming more and more intense.In this era of globalization of all things,supply chain management has become the management tool that enterprises pay attention to.Since the financial crisis of2008 and the European debt crisis in 2009,the world’s economy has been traumatized to varying degrees.The European and American economies are particularly serious.The steel industry in the industry as a pillar industry is also the first to bear the brunt.The whole industry situation is down,and large and medium-sized steel companies in China have also experienced sharp declines in profits and losses.If the steel industry still hopes to have better development,it will definitely need to increase market share.it is necessary to increase their share in the market,however,the prerequisite for improving competitiveness is to have a large amount of funds.The effective use of funds depends on the management level of the company’s working capital,which is particularly important for steel companies to seek development in the crisis.In essence,the working capital management requirements from the perspective of supply chain are based on the theory of supply chain,and analyze all aspects of working capital management,mainly to deal with the linkage relationship between the various channels of operation and each channel,and finally achieve The purpose of refined management of working capital.Therefore,it is of great significance to analyze the operation and management of the steel industry from the perspective of supply chain theory.Based on the idea of supply chain,this paper selects SG Co.Ltd.,which is more representative in China’s steel industry,as the research object,and analyzes the company’s working capital management.At the same time,based on the ideas of stakeholders,the paper analyzes and summarizes the existing literature on supply chain theory and global working capital management theory.Taking SG as the research object,the financial data and operation mode of SG Carrying out comparative analysis,applying supply chain theory to clarify the problems arising from SG in the management of working capital,and put forward corresponding countermeasures,hoping to improve the management of SG company to a certain extent,and good for steel industry.Development plays a positive role in promoting.After analysis,it is found that the company has the following problems in terms of working capital: in the procurement channel,unreasonable procurement methods result in excessive procurement costs and insufficient use of commercial credit;in the production channel,The company cannot formulate a suitable production plan,resulting in the backlog of finished products and materials;In the above,the sales products are limited by the region and the customer relationship management is not perfect.In response to the above problems,the following suggestions are proposed: the use of open tendering mode for procurement can improve the supplier’s competitive power,and achieve supplier management inventory model,adopt innovative sales performance appraisal mechanism,expand sales channels,and establish working capital management information system.Let the management pay attention to the management of corporate working capital to ensure the development of SG Ltd.’s working capital management.I hope that these suggestions will help improve SG Ltd.’s working capital management system and improve the company’s working capital management.