Research On Improvement Of Working Capital Management Of Jinyuan Auto Parts Co.,Ltd.

By the end of 2018,the national car ownership reached 240 million vehicles,ranking first in the world in automobile production and sales for 10 consecutive years.The huge automobile market has promoted the rapid development of China’s automobile parts industry.However,with the intensification of competition,a large number of small and medium-sized automobile parts enterprises in China are facing tremendous competitive pressure.r.Small and medium-sized automotive parts enterprises with high power density are facing enormous competitive pressure.The efficient management mode of operating capital can provide valuable financial support for enterprises,make enterprises survive in the cruel market environment,and then carry out successful transformation and upgrading.Therefore,it is urgent to strengthen the management of operating capital of small and medium-sized automotive parts enterprises At present,there are two main methods to evaluate the efficiency of working capital management.One is the traditional factor-based evaluation of working capital management,and the other is the channel-based evaluation of working capital management.The channel-based evaluation system integrates business and finance,and can accurately evaluate the efficiency of working capital in each link of business flow,so as to find out the weak links in the management of working capital and make an improvement in a targeted way.Therefore,this paper chooses the channel-based working capital management evaluation system to evaluate the working capital management efficiency of JinYuan Auto Parts Co.,Ltd,in order to better find the root of the problem and put forward corrective measures.Firstly,this paper sorted out the relevant literatures and theories about working capital management,and then chose JinYuan Auto Parts Co.,Ltd as the research object based on channel theory.Using the working capital management evaluation index of supply chain or channel to evaluate the working capital management efficiency of JinYuan Auto Parts Co.,Ltd,it is found that there exist some problems:lack of professional management of working capital,high risk of operation,delay of information transmission,inefficiency of each channel of the working capital operation,etc.In view of the problems existing in the working capital management of JinYuan Auto Parts Co.,Ltd,combined with the specific situation of the fieldinvestigation,it is found that the root cause of the problems lies in: the lack of understanding of the working capital management by the management layer,the imperfection of the information system,the obsolescence of business process model of each channel,etc.Then,based on the theory of channel-based working capital management,the author proposed targeted improvement suggestions for the management of working capital through different channels,in the hope of improving the management efficiency of working capital of JinYuan Auto Parts Co.,Ltd,such as build new relationships with suppliers,improve procurement and production models,broaden marketing channels,standardize inventory and accounts receivable management,and broaden and improve financing channels.The study of this paper not only provides operational improvement suggestions for JinYuan Auto Parts Co.,Ltd ’s working capital management and improves the company’s fund management efficiency,but also has good industrial reference value for how to improve the working capital management of small and medium-sized auto parts enterprises.