Research On The Problems And Countermeasures Of Operating Capital Management Of Yanjing Brewery

Working capital working capital is just like fresh blood flowing in every part of production and operation,providing guarantee for basic fund demand of daily activities.The outbreak of financial crisis has made many experts and managements are aware of the important impact of working capital management on corporate profitability and future development.Therefore,how to manage the working capital is closely watched.However,the traditional working capital management method is limited to the scope of financial management,which is not suitable for the complicated business model of modern enterprises.Therefore,people began to explore a new mode of working capital management,that is,how to evaluate and improve the management of business capital based on the perspective of supply chain.The reason why this paper chose to study Yanjing Brewery’s working capital is that the company’s operating income has declined for four consecutive years,which has decreased by 15.82%,but the operating capital has not declined significantly.This shows the low utilization of the operating capital of the enterprise.The author believes that improving the management of working capital is helpful to improve its profitability.This paper studies the operation fund management of Yanjing Brewery from the perspective of supply chain,using the literature research method,case study method and comparative analysis method.First,this paper expounds the traditional working capital management mode and its defects by analyzing the literature,and introduces the research content and methods of this paper.Secondly,by introducing supply chain management,channel management and customer relationship management,this new theory has innovating the traditional working capital management theory,and put forward the new evaluation indicators of operating capital management.Then this paper use new performance indicators to evaluate Yanjing Brewery’s recent 5 years’ operating capital management status from the perspective of supply chain,and found that the operating capital management performance of Yanjing Brewery is not outstanding,which is in the middle of the 5 listed companies in China.Further study found some problems——the procurement model which purpose is replenishing inventory occupies a large amount of funds,the utilization of commercial credits at the procurement stage is low,communication of channel information is not smooth,marketing capabilities need to be improved,and credit policies are too high,which weakens the operating capacity.Finally this parper further explores the causes of these problems,and put forward the following suggestions based on the perspective of supply chain:using supply chain JIT procurement model,and reasonably using the accounts payable can help companies to speed up the working capital turnover of procurement;through the integration of information management system,strengthening the upstream and downstream channel’s relationship management,the company can reduce the inventory occupied capital in the production;using the deep distribution and direct selling,and proper credit policy can improve the working capital management performanceBy using the working capital management mode based on the perspective of supply chain to study Yanjing Brewery’s working capital management’s problems,this paper can make a more scientific evaluation of the working capital management status of Yanjing Brewery,and provide new methods and measures for enterprises to improve their working capital management performance.The author hopes it can help Yanjing Brewery to improve their working capital management performance,and on the other hand,it can provide some reference for other enterprises to deal with similar problems.