Research On Working Capital Management From The Perspective Of Channel

With the advancement of society,the support of policies,and the expansion of demand for pharmaceutical products,the pharmaceutical manufacturing industry has developed rapidly.In the report of the 19 th National Congress,“healthy China” was raised to the national strategic level.As a member of the pharmaceutical industry,Chinese medicine has a long history and is highly regarded for its small side effects and good results.The Chinese medicine health service and the development plan for the protection of Chinese herbal medicines have been introduced by the state,which has promoted the great development of the Chinese medicine industry.Efficient working capital management enables companies to remain invincible in competition and pressure.Therefore,it is particularly important to study the working capital management of enterprises.However,because the elements of traditional working capital management are not comprehensive and the indicators are not holistic,the research of working capital management needs to join the channel perspective,and link the financial cost management of enterprises with business activities by means of various indicators of channel working capital management.In combination with procurement,production and marketing,we will improve the efficiency of the company from procurement channels,production channels and marketing channels,and establish a comprehensive and complete channel working capital management system.This paper adopts the combination of theoretical research and case study.Firstly,it sorts out related literatures at home and abroad,expounds the theory of channel working capital management,and discusses the necessity and feasibility ofintroducing channel perspective in working capital management.Secondly,this paper chooses Guizhou Bailing Pharmaceutical as the case study object,according to the channel working capital management evaluation index,calculates the working capital of Guizhou Bailing channel,analyzes its problems in procurement channels,production channels and marketing channels,mainly in the procurement channel.Excessive use of raw materials,small amount of accounts payable and bills,more prepayments,and fluctuations in the number of suppliers with the highest rankings;excessive accounts receivable in production channels,and excessive use of product inventory funds More;marketing channels have more marketing expenses,too much accounts receivable,and dealer management is difficult.The first-ranked customer’s operating income has continued to decline in proportion to total operating income.Through further analysis,this paper summarizes the reasons for ideology,capital planning,system construction,channel relationship and strategic planning for each channel.Finally,according to the problems and causes of Guizhou Bailing,the corresponding countermeasures and suggestions are put forward.The specific countermeasures are as follows: first,establish the concept of working capital management from the perspective of channels;second,improve the management of accounts payable and bills in the procurement channel,and improve the relationship with suppliers;third,strengthen other receivables in production channels.Management of accounts and strengthening management of product inventory;Fourth,improving the management of accounts receivable and bills on marketing channels,improving the relationship with dealers and customers;fifth,strengthening cooperation between channels;sixth,scientifically development strategy.Based on the comparative analysis of Guizhou Bailing and the industry,this paper believes that Guizhou Bailing really needs to be improved in the management of channel working capital.The research from the channel perspective is the expansion of the research scope of working capital management,opening up new ideas for traditional theory and providing new help for Guizhou Bailing to improve working capital management.I hope that the research in this paper can provide reference for the management of working capital of Guizhou Bailing,and providereference for more enterprises of the same type.