Research On Enterprise's Working Capital Management Based On OPM Strategy

The development of an enterprise is inseparable from sufficient and stable financial support.For the enterprise,whether it is to maintain normal business operations,achieve strategic goals,or transform and upgrade,it is a necessary prerequisite and guarantee.However,the development of many enterprises faces problems such as shortage of funds,limited financing channels,and low efficiency of capital utilization.These problems will limit the sustainable development of enterprises.Therefore,companies need to find a scientific and effective working capital management model to improve capital turnover efficiency and business performance.At present,some enterprises at home and abroad have begun to implement a new type of working capital management,namely the OPM strategy.The strategy can bring a large amount of working capital to the enterprise,effectively improve the capital supply problem of the enterprise,and reduce the financing cost,which is beneficial to the enterprise to increase its influence in the industry and the right to speak in the supply chain,so that it can occupy upstream and downstream enterprises without compensation.The funds and further expansion of scale and market share form a virtuous circle.However,what conditions are needed for enterprises to adopt the OPM strategy to effectively manage working capital has received extensive attention from the theoretical and practical circles.This paper selects the listed company “Foshan Haitian Flavoring and Food Company Ltd.” as a case to analyze its working capital management model based on OPM strategy.Firstly,it analyzes the scientific management of the supplier and procurement business of Haitian flavor industry,and has reached the payment system of “first-and-after-sales”;and the effective support to distributors to achieve the “first-in-after-after-stock” collection system.Secondly,this paper analyzes the working capital management of Haitian flavor industry from three aspects of procurement activities,production activities and sales activities,and compares it with the working capital management of other enterprises in the same industry.Third,it analyzes the financial ability of Haitian flavor industry to implement the OPM strategy and compare it with the same industry.Finally,it analyzes the risks of implementing OPM strategy in Haitian flavor industry,and proposes corresponding improvement suggestions for its risks.It also summarizes the conditions for implementing OPM strategy and provides reference for the management of working capital of other enterprises.Through the case study,this paper draws the following conclusions: First,Haitian flavor industry has obtained sufficient working capital through the implementation of OPM strategy for upstream and downstream enterprises,and effectively utilized funds to make the company bigger and stronger,and achieved good financial performance;Secondly,it analyzes the risks faced by Haitian flavor industry in implementing OPM strategy,and proposes targeted improvement suggestions.Thirdly,it summarizes the conditions and problems that enterprises should implement when implementing OPM strategy.Enterprises need to rationally consider whether to apply the OPM strategy,the degree and mode of application,and propose measures to prevent possible risks according to their actual conditions,and choose a working capital management model that suits them,thereby improving the operational capability and profitability of the enterprise.