Research On Working Capital Management Of Retail Enterprises Based On OPM Strategy

Working capital is the lifeblood of an enterprise’s survival and development,and runs through the entire business process of an enterprise.As an industry that requires extremely high working capital among many industries,the retail industry requires fast capital circulation.Once the capital is returned slowly,it may cause the business process to be disconnected due to the lag of capital in some business processes.Once working capital management cannot be carried out effectively,retail enterprises will face many problems in procurement,production and sales.Therefore,the importance of working capital management to retail enterprises is self-evident.In recent years,with the popularization of Internet technology,more and more industries have taken off with the help of the Internet,and retail enterprises have also been impacted by e-commerce.E-commerce preempts,inventory hoarding is serious,and the efficiency of working capital management is declining day by day.RAINBOW COMPANY was the first to successfully complete the transformation among traditional retail companies,and implemented measures such as supply chain upgrades,digital sales and experiential sales.Strengthening supply chain upgrade is to manage procurement channels,strengthening logistics channel construction is to manage production channels,and digital sales and experiential sales are to accelerate the working capital turnover of marketing channels.And behind this series of measures,strong financial support is needed.The OPM strategy’s role in the management of working capital is formally realized through various channels.Therefore,this paper analyzes the working capital management of Rainbow under the OPM strategy.Taking RAINBOW COMPANY as the research object,this paper evaluates RAINBOW COMPANY’s current working capital management status by using literature research method,case analysis research method and normative research method.Combined with the relevant knowledge of channel theory,this paper analyzes the working capital under the OPM strategy in detail.specific content of management.Then,according to a series of financial data and financial indicators,the performance of RAINBOW COMPANY’s working capital management is analyzed from its own vertical perspective and the horizontal perspective compared with other companies in the same industry.The study found that the OPM strategy can help improve the efficiency of RAINBOW COMPANY’s working capital management,but there are still many problems in RAINBOW COMPANY’s working capital management.For example,the risk of capital rupture caused by over-occupying the supplier’s loan and unable to repay the debt,poor inventory management,and lack of perfect logistics channels.In response to these problems,this paper suggests that RAINBOW COMPANY should adopt a flexible account period policy to manage accounts payable,strengthen inventory management,and establish its own and perfect logistics channels,in order to improve RAINBOW COMPANY’s working capital management performance,and help companies in the same industry.Provide some inspiration and reference.