Research On The Working Capital Management Of Pharmaceutical Manufacturers In The Process Of Collective Operation

During2013the merger cases have reached103in pharmaceutical industry andbecomeing China’s fourth largest acquisitions industry.The pharmaceutical industry isdeveloping rapidly,and becoming stronger through mergers and acquisitions hasbecome the topic of the industry.In this background, pharmaceutical manufacturerswill presents the trend of collective operation further.This trend puts forward higherrequirements for business management,especially in terms of working capitalmanagement of companies.Enterprise Group’s capital movement involving multiplesubjects and all aspects of the internal group,as a result the enterprise group’s workingcapital management can not be confined in the financial field,it should combine withthe group’s characteristics and the group’s management activities.The capital operateson the supply chain, so the management of supply chain can not be ignored if wewant to improve the group’sworking capital management performance and it’s verynecessary to introduce the supply chain management into the study of the theenterprise groups.Through the review of the literature on the working capital management ofEnterprise Group as well as literature on supply chain oriented working capitalmanagement,we found that the current study of the supply chain oriented workingcapital management on enterprise group is inadequate.Therefore, this paper willbased on the combination of supply chain oriented working capital management andworking capital management of Enterprise Group to further explore working capitalmanagement of enterprise group.Firstly, the working capital management of S pharma group is studied.S pharmagroup is one of the representative pharma groups in the industry,In recent years it hasmerged a lot of pharma companys in the area of R&D, manufacturing, distribution and retail aspects,extending its industrial chain,and the integration of the Group’sresources has made this areas closely linked at the same time.After a preliminarystudy about the background and the process of S pharma Group’s collectiveoperation,this paper analyzes the performance of its working capital management inthree years time,and make an evaluation about S pharma group’s working capitalmanagement on this basis.Making analysis about the advantages and disadvantages ofS pharma group in the current working capital management. S pharma group’simplement of working capital management has brought a positive side especially onthe procurement channel and production channel which ahead of the industry’saverage.However, the working capital management of S pharma Group also existsinadequacies which need further improvement.On the basis of the analysis of S pharma Group’s working capital managementabove,this paper will introduce the theory of channel management,the theory ofcustomer relationship and the theory of supply chain management into the workingcapital management of enterprise groups in the process of collective operation.