Establishing & Improving Of The Credit Management System In Xi'an Janssen Pharmaceutical Co. Ltd.

In recent years, with the economic of china developping fastly, the healthycare of people are taken into consideration, in the meantime, the pharmaceutical market growed very quickly, and the revenue and profit of pharmaceutical companies growed fastly, the pharmaceutical industry enter into a sunrise industry. Howerver, more than 15000 pharmaceutical companies extended the busiess quickly because of high profitability, compete with the same products in the pharmaceutical industry to have the big impact on the development of some medicine companies. A report showed that the profit ratio of pharmaceutical companies has decreased from 9.4% in 2003 to 7.98% in 2006 and accounted for 22% of medicine companies'profit were loss in 2006l, the loss reached RMB 4.5 billion. The pharmaceutical product seld in the hospital reached the lowest point….., and most of pharmaceutical companies have faced the difficult status including domestic companies and foreign companies. Xi'an Janssen Pharmaceutical company (XJP) is one of the first joint medicine companies which established in 1985 by stated-owned companies and Beglium Jassen, a companies of USA Johnson&Johnson. XJP has become the biggest joint medicine company in the foreign pharmaceutical industry. The products of XJP mainly seld through the medicine distributors, and the difficult and intensify competition in pharmaceutical have bring the potential credit risk for the credit sales of XJP, so XJP need to establish the credit management system to reduce the credit risk, increase the efficient of cash flow and support the sales.In this article, I applied many theories and practice of XJP credit management, At the first, I studied the full process credit management, then give tha finance tools to reduce the collection risk, through these study to introduce the XJP credit management system.As a staff of XJP, and a member of establishing the credit management system, I hope that some credit management skills or practice will helpful for establishing the credit risk management system for domestic pharmaceutical companies the future...