Research On Sany Heavy Industry’s Working Capital Management Under Digital Transformation

Working capital is an essential guarantee for maintaining the regular operation of an enterprise and runs through all links of the enterprise value chain.Through the continuous optimization of working capital,the enterprise can realize the effective allocation of resources,thereby bringing more value to the enterprise.The current domestic and international environment is becoming increasingly complex,the construction machinery industry is multiplying,and problems such as overcapacity,large inventory,and weak production have emerged one after another.The traditional working capital management model has also been significantly impacted.Enterprises urgently need to change the operating capital management model.As a result,many groups have implemented digital transformation and continuously improved the existing capital management model with the help of digital technology,which has dramatically enhanced the working capital management model.s efficiency.Sany Heavy Industry is a leading enterprise in my country’s construction machinery industry,and its digital transformation is relatively mature.This paper takes this as the research object to analyze its working capital management.First,sort out the domestic and foreign literature on digital transformation,working capital management,and combining the two.The analysis is based on customer relationship management,channel,and value chain theories.Secondly,it introduces the basic situation of Sany Heavy Industry,summarizes its digital development process,and analyzes its working capital situation from an overall level.Thirdly,it explores the operating capital management mode of Sany Heavy Industry under the digital transformation and evaluates the working capital from three aspects: liquidity,profitability,and risk.Finally,according to the analysis and evaluation,Sany Heavy Industry’s excellent experience is refined,and improvement suggestions are put forward for the areas that need to be optimized.Research shows that Sany Heavy Industry’s working capital management is a relatively successful case.Since the company established a digital transformation strategy in 2016,operating capital efficiency had been dramatically improved.Based on this,this paper extracts the excellent experience of Sany Heavy Industry: digital transformation reduces resource misallocation;new production methods improve efficiency and form a strategic cooperation system from upstream to downstream.However,there are still some problems in Sany Heavy Industry’s working capital management: the excessive occupation of suppliers’ funds,poor quality of cash recovery,and unreasonable working capital structure.Based on this,it puts forward optimization suggestions such as moderately sharing profits with suppliers,paying attention to accounts receivable management,strengthening risk management,and control of working capital.Through the analysis of Sany Heavy Industry’s working capital management under the digital transformation,it can provide a certain reference for other enterprises in the industry to change their working capital management mode.