The Operating Strategy Of Working Capital Based On Channel Management

The management of working capital is essential in the enterprise. But its importance has not yet be widely recognized. The management of working capital is also concentrated in the control of accounts receivable and inventory by the majority of enterprises, which is defined in Financial Management working capital management and use of capital from a financial perspective concerns the process of raising and use of risk-benefit trade-off, focusing on the quantitative control of certain items of working capital is closely related to the research methods. This thesis holds that the study of working capital can be extended to business perspective, that is, from the entire process of purchase, production, sale to be concerned with the circulation of working capital, to explore how to speed up cash flow and reduce the level of capital occupancy through improving channel relationships and production methods in the course of business and develop the potential of capital by integration of financial management and business management.This thesis is divided into six chapters. The first chapter is introduction, it introduces the background and the purpose of the research. Chapter II defines the category of the working capital management, and sum up the current study situation, pointing out the shortcomings. Chapter III reclassifies working capital according channel from the perspective of channel management, in order to lay a theoretical foundation for the study. And it mainly analyses the influence which the key elements of the channel management exert on working capital management. Chapter IV expounds the new strategy which is different from traditional methods on the management of working capital, on the basis of mechanism which the key elements of the channel management exert on working capital management, combined with process of the production and operation of enterprises. It discusses how to improve the functioning of the process efficiency and reduce sedimentation of capital from the point of view on channel management. Chapter V tries to analyze two typical cases, included Hewlett-Packard company and haier company. The Chinese enterprises can learn from the reality of providing guidance through its relevant experience and inspiration . The final chapter for the conclusion, summarizes the work of this thesis and points out the limitations of the study.This thesis combines channel management with working capital management, seeking to establish new concept which is different from the traditionally financial concept of working capital management .It wants to promote the development of theory and methods about working capital management. From a financial point of view, the traditional way focuses on the holdings management, there is no concern about the working capital flow in the operation of enterprises in the specific process, and in the international financial crisis in the context of deepening, enterprises should spare no effort to pay attention to the daily operation and management of capital to improve operational efficiency in an all-round strengthening of the control of its own cash flow, avoiding poor-strand breaks leading to the enterprise find themselves in financial difficulties. In fact the effective management of working capital must be closely the operation of business processes and focus on the coordination of external relations. Business channels as a member of the social environment which is a network of relationships and channels of direct and indirect participants, as well as their resources relations, affect all aspects of channel members'ability. Starting from the relationship between the channels, combined with supply chain management, customer relationship management research, working capital will allow the operation of the process of more clearly showing the face for the people, and to estimate the efficiency and potential, servicing to maximize the value of enterprise better.