Managing Working Capital On The Base Of Business Process Management

Working capital is circulating blood for a company, and working capital management largely determines the existence and development of an enterprise. Larry. titman and Chars once investigated how CFOs at 1,000 public U.S.-headquartered companies allocated their working hours. The survey revealed the time that they spent on working capital management accounted for almost one-third. But on the contrary, in our country, we are late to research working capital management,fundamental and practical research are relatively few.Managing working capital on the base of business process is an innovative concept of working capital management. This paper combines business processes management and working capital management, to explore working capital management models on the base of business process management. There are six chapters in this paper. The first chapter is about the purpose and significance of the research, and present research review. The second chapter conducts a survey to reveal the efficiency of working capital management of Chinese Listed Companies of2007-2008 and summarize current situation of working capital management of Chinese Listed Companies. Besides, connecting the research of experts from abroad analyze the problems and origins of working capital management of Chinese Companies and discuss the necessity of managing working capital on the base of business process. The third chapter is business process management and supply chain management which are the theory of this paper. In the forth chapter, through establishing general model of business processes and working capital and establishing the model of business process cycle and working capital turnover period, the relationship between business process and working capital, and the relationship between business process cycle and operating capital turnover period have been analyzed to make an attempt to theoretically explain the working capital management mechanism on the base of business process. In the fifth chapter, by analyzing business processes of typical companies, the models of working capital management on the base of business process management can be concluded.The last chapter are conclusion, deficiency and prospect.This paper, based on problems of working capital management of Chinese companies, creatively puts forward the theory system of working capital management on the base of business process management which combines business processes management and supply chain management. That is significant to enhance working capital management level of enterprises and operation management, which is beneficially supplementary to the traditional theory of working capital management.