Research On The Working Capital Management Of Hisense Electric Based On Channel Management

The relationship between economic development and the market environment is complementary.The management methods of enterprises need to be coordinated with the market environment.The business management methods will also change and adjust with the development of the economy.The traditional operating funds management model focused on inventory and accounts receivable management has been transformed into a new model of industry finance integration that combines business process management and supply chain management.Channel management has emerged in the wave of social and economic development and has become the core concept of business management.For listed companies,this new working capital management evaluation system will help companies identify defects in capital management in various parts,and then improve the working capital management model.Thereby it accelerates cash flow,makes up for previous vacancies,improves of the market competitiveness of enterprises.The promotion of competitiveness has a positive effect.Therefore,based on the channel management theory this article selects Hisense Electric as the research object and combines the operating funds management mode with the business operation mode of the company.It adopts literature review methods,case analysis methods and comparative analysis methods for Hisense Electric.Firstly,this article introduces the background of Hisense Electric,demonstrates the structural proportion of Hisense Electrics working capital and important financial data indicators,and further presents the actual operating fund management of Hisense Electric.Then,based on the theory of channel management,the working capital of Hisense Electric was reclassified into three channels including procurement channels,production channels,and marketing channels,and performance evaluation indicators were selected for each channel.Secondly,based on the relevant data of working capital of the company's annual financial report from 2012 to 2016,this article analyzes the working capital management status of each channel,and correspondingly presents the problems that exist in each channel's working capital management.Finally,combined with the analysis results of the previous article,we propose a further channel optimization strategy for each channel,and put forward suggestions for improving cooperation with suppliers,establishing a reasonable procurement plan,increasing the recovery of receivables,and reducing production cost consumption.It is a wise move for Hisense Electric to introduce the channel management theory into the business process,which will help Hisense Electric better manage its working capital.Not only that,but improving the fund management system has a certain role in promoting the development of the entire home appliance industry.It is believed that the in-depth discussion of Hisense Electric will prompt enterprises to pay more attention to the issue of fund management in the industry and drive the development of the entire industry.