Research On Working Capital Management Of LB Electric Company Based On Channel Theory

With the progress of science and technology,people's living standards are improving day by day,consumption concept will also be upgraded and China's kitchen market continues to grow.Household electrical appliance manufacturing industry is the leading industry in the field of household appliances consumption in China.The competition in the industry is becoming increasingly fierce,and the survival and development of enterprises have been seriously restricted.In order to obtain long-term survival competitive advantage,household electrical appliance manufacturing enterprises need to continue to develop new ideas and new methods.With the change of external environment,working capital in enterprise becomes more prominented in the capital chain,which has certain characteristics,mainly reflects in the strong liquidity,and effectively alleviates the shortage of funds of enterprises.The enterprise is closely related to procurement,production and sale links.By speeding up the turnover managers obtain a high performance,improve the capital turnover rate and provide good financial support for business activities,help to reduce product costs,maximize profits and the enterprise value.The classification method of the traditional working capital management can't meet the need of enterprise managment,however,"The establishment of China enterprise working capital management research center",indicates that scholars achieved certain results of working capital management.In 2007,Professor Wang Zhuquan put forward a practical evaluation system for the management of working capital.The advantage of the index system lies in the channel oriented,integrated working capital management with business process.First,the paper uses the methods of literature research,case analysis,comparative analysis,and summarizes domestic and foreign current situation,with supply chain management theory and customer relationship theory;Then,to take LB electric appliance company as an example,the five-year financial statements,and then analyze the existing problems and reasons in the procurement,production,marketing channels.At last,to differences between the home appliance industry and its average value of LB electric company,the paper put forward to strengthen the supplier management,production decision to market trends and improve the distribution channels and so on,to make up for its shortcomings in the existing in the management of working capital.The paper applies channel theory to practice,combining with the enterprise business operation mode,from the whole process of supply chain to pay attention to the operation of operating capital.And it is hoped that the operating fund management model can provide reference and guidance for the improvement of the management level of operating funds for other enterprises.