Research On The Working Capital Management Of Tianrun Dairy Based On Channel

Today,with the world economy becoming increasingly integrated,China has become part of the world’s economic supply chain.If enterprises want to be invincible in the future development,they must improve their working capital management.In recent years,the global economy has shown a gradual recession due to the spread of the epidemic,the whole environment is full of uncertainties,and domestic enterprises are also in internal and external difficulties.Therefore,it is particularly important to strengthen the management of working capital in order to gain a broader prospect in the future.By adopting a sound working capital management approach,the profitability of a company can be enhanced.Due to the nature of the dairy industry,it tends to be backed up by larger capital flows during its production operations.From this point of view,the systematic management of working capital in dairy companies is of great practical importance.There are many perspectives from researchers on working capital management.In the past,it was possible to analyse a company’s working capital in isolation,which would have left something to be desired.Now,as research gradually deepens,it is possible to combine working capital management with theories such as channel management and supply chain management,giving rise to working capital management based on a channel perspective.This is mainly to divide the business activities of enterprises into three channels,namely procurement channel,production channel and sales channel,and to analyse the working capital of each channel,which makes up for the deficiencies in the analysis of financial indicators of working capital management of enterprises in the past,and better achieves the integration of business and finance.This paper takes Tianrun Dairy as a case study,combines working capital management and related theories,and uses literature induction analysis,case study analysis and financial analysis to analyse and research the working capital management situation of the enterprise.From the perspective of Tianrun Dairy’s channels,the working capital management of each of the three channels is studied.At the same time,through the business cooperation between Tianrun Dairy and its upstream and downstream related companies,the problems and causes of working capital management are identified and targeted solutions are given.On this basis,the paper suggests that the company should establish a channel management business concept,strengthen information exchange within the company and communicate effectively with the upstream and downstream companies with which it cooperates,so as to ensure the smooth running of its business activities.The aim of this paper is to improve the working capital management of Tianrun Dairy,enhance the efficiency of working capital turnover,strengthen the cooperation relationship between the company and achieve the goal of improving the working capital management of the enterprise.