Research On The Working Capital Management Of Yonghui Superstores From The Perspective Of Supply Chain

Good working capital management is vital to the survival and development of enterprises.In recent years,the rapid development of e-commerce has intensified the competition in the retail industry,and the development of retail enterprises has encountered bottlenecks.The working capital management has become the top priority of its business development.The retail enterprises urgently need to innovate working capital management mode and improve the efficiency of working capital management to strengthen their core competitiveness.The traditional working capital management method focuses on the source and allocation of funds and it mainly manages individual working capital items such as inventory and accounts receivable,which ignores the interconnection among these items and separates from the business process of enterprises.The traditional working capital management mode can no longer fully meet the needs of corporate fund management in the market environment where competition between individual enterprises is gradually shifting to competition in the supply chain.Therefore,the theory of working capital management based on supply chain arises at the historic moment.From the perspective of supply chain management,by optimizing the structure of supply chain and building a good supply chain relationship,and thereby promote the operational efficiency of supply chain and fully improve the working capital management efficiency of enterprises and further integrate finance and business,capital and operation.This concept of fund management breaks through the limitations of traditional working capital management research and provides a new perspective to solve problems,which has important practical significance.As the leading enterprise in China's chain retail industry,Yonghui superstores maintains high growth and steady expansion and stands out from many retail enterprises,which is attributed to its great efforts made in supply chain management and its excellent ability in working capital management.Therefore,this paper selects Yonghui superstores as the case study object and explores its working capital management mode from the perspective of supply chain management,which has representativeness and reference value.Firstly,this paper use the literature research method to sorts out the research results related to working capital management and supply chain management to clear the research direction;Then,the concepts of supply chain and working capital management is defined,and it analyzes the content,characteristics,and relevant theoretical basis of the supply chain-based workingcapital management from the theoretical level;After that,the case analysis method is used,based on introducing the basic situation of Yonghui superstores and its overall status of supply chain management and working capital,the working capital management strategies under the supply chain of Yonghui superstores are explained in detail,and then the comparative analysis method is used to evaluate its working capital management effect from the vertical and horizontal dimensions;Finally,the conclusions of the case analysis are drawn,and the implications which can be used as reference for retailers in the same industry are summarized from Yonghui superstores' working capital management based on supply chain.The source direct procurement mode and good supplier management of Yonghui superstores have improved its fund management efficiency in purchasing,and the efficient inventory circulation is achieved through refined inventory management and agile logistics.Moreover,the reasonable credit risk management and supply chain collaborative marketing mode have accelerated the capital turnover in marketing.In general,Yonghui superstores' working capital management mode based on supply chain produced positive effects and improved its fund management efficiency.The successful experience of Yonghui superstores can provide valuable implications for other retail enterprises' fund management.Firstly,participate in equity investment and attract investment to establish alliance with suppliers,and actively develop supply chain financing.Retail enterprises can be bound with high-quality suppliers by forming strategic alliances with suppliers,shorten the purchasing process and lower the purchasing costs,and obtain advantages of credit buying.Meanwhile,they can alleviate the suppliers' pressure on fund shortage and reduce the suppliers' cost of capital by developing supply chain financing,which is beneficial to strengthen their speaking right in purchasing and further obtain concessions in purchasing costs and payment days.Secondly,manage the inventory by information technology,and self-established logistics system combined with third-party logistics.For inventory management,the retail enterprises can use the Internet information technology to achieve information sharing so that the suppliers can get the inventory information and precisely forecast the demands and rapidly response to shortages,and then reduce the inventory levels in supply chain.According to their own situation,retail enterprises can choose to establish their own logistics system,or outsource to a high-quality third-party logistics platform,or use two types of distribution mode jointly to ensure the efficient turnover of inventory.Thirdly,cooperate with suppliersdeeply to establish a customer-oriented supply chain marketing mode.Relying on their own information advantage,retail enterprises can transfer customer information by information technology to effectively guide the R&D and production of suppliers,and the retailers' internal business arrangement and resource allocation of purchase,distribution,and sales can also be adjusted accordingly.Through the supply chain collaborative marketing mode,retail enterprises can provide products that meet consumer needs and effectively control the inventory level,and improve the overall operational efficiency of the supply chain.Finally,Enhance their own ability of working capital management,and reasonably occupy the upstream and downstream funds.Retail enterprises take many operational risks under the “Similar Financial Mode”.They should not rely too much on channel funds,and should pay attention to the long-term win-win cooperation between supply chain enterprises and maximize the overall benefits of the supply chain.Retail enterprises should improve operational efficiency and working capital management efficiency by enhancing their own capital management ability and optimizing supply chain management to gain long-term competitive advantage.