Study On Working Capital Risk Prevention And Control Strategy Of SF Express Under Direct Operation Mode

As competition in the express delivery industry becomes more and more fierce,most express companies choose to operate in franchise mode for rapid expansion and accumulation of resources,while SF Holding chooses direct operation mode in the opposite direction.Direct sales mode is rarely used in express delivery enterprises.Its advantage is that the headquarters has a strong and powerful control force,which can achieve scale effect and strive for more long-term and high-quality development for enterprises.The disadvantage is that the early investment cost is huge,lack of efficiency,easy to lead to enterprise financial risk.As a representative enterprise of direct operation mode in express industry,SF Holding faces financial risks which are closely related to the direct operation mode.Working capital as the top priority of enterprise financial management,timely prevention and control of working capital risk,improve the efficiency of working capital,is conducive to promoting the maximization of enterprise value.Therefore,the strategy of working capital risk prevention and control under the direct operation mode is worth further study.In this paper,literature analysis,case analysis and comparative analysis are used,and based on strategic management theory and risk management theory,the working capital risk prevention and control of SF Holding under the direct operation mode is taken as the research objec In the process of the research,this paper firstly explores the advantages and limitations of SF Express direct operation mode based on the analysis method of strategic management.Then,the horizontal and vertical analysis of working capital risk management under the direct operation mode is carried out,focusing on the current situation of working capital before and after the novel coronavirus outbreak,and the comparison with YTO Express and Yunda Shares in the same industry is made to highlight the impact of the direct operation mode on the working capital of SF Express Holding under the general background.Based on this,we find out the risks of working capital and the causes of the risks,use the Fscore model to evaluate the working capital risks,and finally put forward constructive strategies for risk prevention and control.The main research conclusions of this paper are:First,under the mode of direct operation,the most significant characteristic that distinguishes SF Holding from other express delivery enterprises is that it buys a large number of fixed assets,achieves scale effect with a large amount of cost input in the early stage,and is committed to improving the service quality ofthe enterprise.Second,under the mode of direct operation,SF Holding’s current business structure is unreasonable and its high operating costs result in the decline of profitability.At the same time seriously affect the working capital of enterprises,resulting in the efficiency of working capital decline,there is a certain risk.Third,it puts forward relevant suggestions for SF Holding’s working capital risk prevention and control strategy: optimize the business structure and vigorously optimize the profit quality;Appropriately expand the scale and strictly control investment risks;Diversified financing,scientific management of debt structure;Improve turnover capacity,reasonable allocation of capital structure;Improve the management system,a large amount ofrecovery accounts receivable.This paper takes SF Holding,a leading enterprise in the express industry,as the research object,focusing on its working capital risk prevention and control strategy under the direct operation mode,hoping to provide reference for SF Holding and other enterprises in the same industry.