The Research On Working Capital Management Improvement Of Yixinda Corporation Based On Supply Chain

Working capital is the most dynamic part of enterprise cash flow,which is the basic guarantee for maintaining the operation of firms.In recent years,sometimes the phenomenon of corporate capital chain has broken down or bankruptcy has occurred because of badly working capital management.Thus most of small and medium-sized enterprises have paid more attention to improve the efficiency of working capital management.The traditional working capital oriented to the financial activities elements ignores the working capital elements and the interaction between each element and the whole,which cuts off the relationship between enterprise working capital management and enterprise business processes,making it difficult to help small and medium-sized enterprises to improve the efficiency of working capital management.Based on the concept of supply chain management,this paper studies the working capital management theories and methods of small and medium-sized enterprises and promotes the efficiency of enterprise working capital management by coordinating the interests of upstream and downstream enterprises and various departments within the enterprise.This research has certain theoretical and practical significance for small and medium-sized enterprises to improve their working capital management efficiency.This paper adopts three research methods: literature research,case analysis,and comparative analysis to develop a comprehensive and systematic analysis to study working capital management which just depends on the case of improvements of the Essence’s working capital management.First of all,this article combine the relevant literature at home and abroad to analyze the related theories of supply chain management,customer relationship management,channel management and working capital management,which will lay the theory basis for the research of working capital management with the supply chain of Yixinda.Then,the method of combining elements and channels is used to evaluate the current status of Yixinda’s working capital management from the two dimensions of working capital security and efficiency,and to analyze the problems and causes of its working capital management;Next,using the ideas of supply chain management theory,this paper proposed three specific suggestions for the improvement of Yixinda ’s working capital management,such as forming a supply chain strategic cooperation alliance,strengthening intra-enterprise collaboration,and introducing supply chain financing.Finally,to ensure the feasibility and effectiveness of improvement measures,the article also proposes safeguard measures from three aspects: implementing the working capital management concept based on the supply chain,promoting the relevant system of working capital management based on the supply chain,and building a highly integrated information system.This article is based on the practical problems existing in the working capital management of small and medium-sized enterprises in China,breaks through the traditional working capital management model which is oriented to elements,and introduce the perspective of supply chain management,and conducts theoretical research and practical discussion on ways to improve enterprise working capital management.This paper hopes to provide a reference for Yixinda and other enterprises on how to improve working capital management.