On Jointown’s Working Capital Management In The Application Of O2O Mode

With the rapid development of the web technology,the concept of "Internet +" has been spreading to all walks of life and consumers prefer convenient online transactions as well as offline consuming experience,which promotes enterprises step into the O2 O mode transformation.The pharmaceutical industry,concerning the public health,has always been attracting great concern of the country and there is much development opportunity for this industry.The application of O2 O mode brings significant changes to the operation of enterprises,and will certainly have an impact on the working capital management.Studying the working capital management of an enterprise can help an enterprise to understand its own capital use efficiency and operation level,and thus promote its long-term development as well as provide references for other companies’ O2 O application.Therefore,this paper selects Jointown as the case,which takes the lead in O2 O transformation of medicine distribution enterprises in Hubei province,combine the evaluation system of working capital management under the perspective of the channel and elements,so as to analyze Jointown’s working capital management status before and after the application of O2 O.In addition,this paper analyzes the existing problems in Jointown’s working capital management and provides according suggestions.Besides introduction and conclusion,this paper main body part includes three chapters: firstly,the second chapter introduces the characteristics and two common operation modes of O2 O mode and analyzes how O2 O mode affects companies’ working capital management respectively from the perspective of element and channel respectively.On the basis of that,this paper puts forward combining the two working capital management evaluation system,as the evaluation framework for case analysis.Secondly,the third chapter analyzes the background of the O2 O application of Jointown,and sorts out the development process and application strategy of its O2 O mode.And then the paper analyzes the changes of working capital in various elements in the O2 O application,evaluates the working capital management performance of whole operating activity from the perspective of channels,and finally analyze the problems in Jointown’s working capital management with the consideration of different working capital elements have different impact on the working capital performance in procurement and sales channels.In chapter four,the paper puts forward according suggestions to solve the existing problems and improve Jointown’s working capital management.This paper finds that because of the different impact that O2 O mode impose on the various working capital elements and working capital elements on the working capital management in channels,the O2 O application may cause opposite influence on enterprise’s working capital management in different channels.The case analysis finds out that O2 O application improves working capital efficiency in procurement while reduce that in the sales channel.As a whole,the working capital efficiency of Jointown decreased slightly.Thus,this paper summarizes the problems of Jointown’s working capital management including insufficient online transactions,imperfect receivables management and sever occupation of suppliers’ capital.Finally this paper puts forward according suggestions as follows: expanding online transaction scale,improving receivables management and building loner-term cooperation with suppliers,hoping to further improve Jointown’s working capital management.This paper creatively combines the working capital management performance evaluation system in elements and channel perspective to evaluate the enterprise working capital management.This paper focuses on the effect on working capital management that application of O2 O mode imposes,and finds out the factors which affect Jointown’s overall working capital management,hoping to provide reference for other medicine distribution enterprises in O2 O application.In addition,this paper enriches case studies of O2 O application in medical circulation industry.