Research On Working Capital Management Performance Of Company A Based On Channel Management

With the rapid development of globalization,China has gradually become the mainstay of the global supply chain.And company A from the small factory of assembly accessories,after thirty years of ups and downs,finally developed into today’s world-renowned appliance brand,which is the result of its own efforts to develop,but also an important manifestation of China’s economic development.Company A as a representative of China’s household appliance manufacturing industry,its daily management and management experience can provide sufficient reference for other companies,and working capital as a key element to support the daily business activities of enterprises,its management performance can directly reflect the operation ability of enterprises.Based on the theory of channel management,working capital management theory and performance evaluation theory from the perspective of channel,this thesis evaluates the working capital management performance of company A by using fuzzy analytic hierarchy process(FAHP).Firstly,this thesis analyzes the current situation of working capital management of Company A from the perspective of channels,introduces the basic situation of Company A and the composition of working capital of its business activities from 2017 to 2020,and analyzes the management strategies of purchasing,production and sales channels of Company A and the financial indicators related to working capital management.Then,based on the understanding of the current situation of working capital management in each channel of Company A,this thesis selects important financial indicators in each channel to construct a fuzzy analytic hierarchy process(FAHP)model.Through this model,the working capital management performance of Company A as a whole and in each channel is quantitatively evaluated and analyzed.It is found that the comprehensive performance of working capital management in company A has reached the ’good’ level,and the performance of working capital management in various channels is also in the ’good’ level,but the performance evaluation of working capital management in production channels is slightly lower than that of procurement and sales channels.Finally,through the analysis of the comprehensive scores of each sub-index within the channel,this thesis finds that there are problems in the working capital management of Company A,such as the tension with the dealers,the serious backlog of raw materials and products,and the lack of sustainability in the transformation of the"New Retail" sales model.The reason is that there is a lack of effective communication between the channels of Company A,the low degree of product diversification,the contradiction between online and offline sales channels,the insufficient exploitation of the potential of online channels and the abuse of channel rights and dominant positions.It also puts forward that Company A should use information technology to transform into a flexible production model and actively promote the strategy of "diversified operation".In order to effectively improve the working capital management performance,it is necessary to build an equal and mutual trust channel relationship with distributors,deeply integrate online and offline sales channels,and develop overseas markets by implementing overseas mergers and acquisitions.The results show that the construction of working capital management performance evaluation system and the evaluation and analysis of working capital management performance from three aspects of procurement,production and sales can improve the applicability of working capital management performance evaluation to the household appliance manufacturing industry,and expand the research in this field to a certain extent,which can bring some thinking and reference for the improvement of working capital management performance of target companies and other household appliance manufacturing enterprises.