Riri Shun(Group) Working Capital Research Based On Business Process Management

Operating capital is the occupation of resources for a company, and the principle of operating capital management is the management and control of resource efficiency. Suited operating capital management is the main content of Financial Management, and the developing basis for an enterprise. Managing operating capital on the base of business process is an innovative concept, combining business process and operating capital situation of BCG (Business Circulation Group), it reveals the problems and causes in the company. At last the paper proposes solutions on the problems.The paper which combining theories of operating capital management and business processes management, discusses the relationship between operating capital turnover and business process cycle. Through empirical analysis on operating capital management of BCG based on business process, we find the reasons which cause the problems of BCG, such as matching problems between operating capital and target market, purchasing decisions and sales forecasting, capital management and extended eeceivables. The paper puts forward the concept of Operating unit, which is the main structure of business process, and Operating unit if significant to the budget of operating capital. Based on Operating unit and business process, the paper puts forward solutions containing Budget management, resources allocation, purchasing decisions and order forecasting, which solves the problems of operating capital management in BCG. The article is beneficially supplementary to our traditional theory of operating capital management.In the ending of the paper, combined with summary and outlook of operating capital management in BCG, conclusions are drawn. Operating capital management on the base of business process is theoretical extension of operating capital management, and practice of BCG is evidence and innovation of the theory. By studying operating capital management base on business process, BCG promots its management efficiency and Haier Group achieves its strategic objectives.