The Research On Haier's Working Capital Management From The Perspective Of "Factor-Channel"

For enterprises,working capital management is an extremely important part of their production management.It is also an important factor in their survival and development,and plays a vital role in the procurement,production and sales of enterprises.The healthy growth of enterprises and the efficient management of working capital are inseparable.Improving the performance of working capital management can contribute to the progress of enterprises.At present,in the study of working capital management performance,the representative angle has two perspectives: “factor” and “channel”.“Factor” refers to the various factors that constitute working capital,such as inventory,accounts receivable,accounts payable,etc.From this perspective,we mainly study the turnover period of the working capital components and evaluate the management efficiency of capital management by analyzing the length of the turnover period.For asset,the shorter the turnover period,the more efficient the management of the enterprise,while the debt is the opposite.The “factor” perspective can clearly define the management level of each factor.Nevertheless,there are complex relationships between the elements of working capital.Separating the factors is not conducive to the control the whole link.For example,enterprises can relax the collection policy in order to speed up inventory turnover,then the acceleration of inventory turnover will make the accounts receivable turnover slow.Therefore,for the management of working capital,only focusing on the components is not able to comprehensively evaluate the efficiency of the working capital management.From the perspective of “channel”,the business activities of enterprises are divided into procurement channels,production channels and marketing channels.This perspective mainly studies the turnover period of each channel.A shorter turnover period of a channel indicates more efficient working capital management.The working capital management from the channel perspective can clarify the turnover efficiency of the working capital of each channel,and can match the whole production and operation process of the enterprise.However,the various working capital factors involved in each channel are numerous,so it is also necessary to combine the perspective of “Factor”.From two perspectives of “vertical” and “horizontal”,the problem of working capital management of enterprise could be analysed more comprehensively and thorough.China's home appliance manufacturing industry is developing rapidly.It not only has strong vitality in China,but also has a strong competitive advantage in foreign markets.The amount of working capital in the home appliance manufacturing industry is huge and the content is complex.If it cannot be effectively managed,it will adversely affect the development of the company and reduce the competitive advantage of the enterprise in the market.In addition,the home appliance manufacturing industry is in the middle of the industrial chain.It is closely related to the upstream and downstream industries.Therefore,for the home appliance manufacturing industry,it is more comprehensive and thorough to analyze working capital management from the perspective of “factor” and “channel”.After a brief analysis of the current situation of working capital management in the home appliance manufacturing industry,this paper selects Haier as the case enterprise to analyze and evaluate: Firstly,this paper analyzed Haier's working capital management strategy.After analysis,this paper believes that Haier's current assets and current liabilities structure are unreasonable,and the financing strategy of working capital is a bit radical;Then,from the two perspectives of “factor” and “channel”,the author evaluated the Haier's working capital management efficiency in recent 5 years.From the perspective of “factor”,in recent years,Haier's accounts payable turnover period is far lower than Gree Group,it means taht the management of accounts payable is not efficient.From the “channel” perspective,in recent years,the working capital turnover is slow in Haier's procurement channels and marketing channels.It has no advantage compared with Gree Group.Finally,refer to the problems of Haier,this paper proposes the following suggestions: adopting diversified financing strategies,strengthening inventory management,strengthening communication with upstream and downstream enterprises,and expanding online sales channels.