A Research On The Working Capital Management In Purchasing Channel Of Suning Commerce Group

With the development of economy and the the increasing market competition currently, working capital management has been more important in the corporate finance.The situation of working capital management, not only affect the profitability and liquidity of enterprise directly,but also about its position in the market competition and even the survival. Therefore, how to improve the efficiency of working capital management has become the main content of financial management. Combination with the theory of channel management and the working capital management provides a new idea for this.It is more convenient to search for strategies in improving the efficiency of working capital management from a number of channels.Because of the purchasing channel connects suppliers directly, the situation of working capital management in purchasing channel has a significant impact on the value of enterprises and the whole supply chain. So, A research on the working capital management in purchasing channel has important theoretical value and practical significance.With the development of economy and the progress of society in recent years, retail chain companies of electrical appliance in China are developing rapidly with networks everywhere and huge capital investment.Part of these enterprises are in monopoly because of the size and strength. On the one hand, due to facing the terminal consumers directly, they can receive payments immediately after sales;On the other hand, their monopoly position determines that they have more power when face the small and medium-sized suppliers. They can be gainers through asking for a delay in payment.This asymmetry make them control the entire supply chain market, so that they can get a large number of planktonic cash through the occupation of funds from suppliers, which can be used to manage and expand.But does this business model have risk along with the short-term benefits? Whether this working capital management strategy in purchasing channel can gain long-term benefit? To answer these problems,this paper selects the typical case of electrical appliance retail-Suning Commerce Group to make comment on its working capital management in purchasing channel.This paper is divided into seven chapters using the normative research and case studies. The first chapter is introduction. It is mainly about the background and significance of the research.Besides, it makes a collection of literature on this issue in recent years and then make a comment.The second chapter is the theoretical knowledge. This article is based on the channel management theory, stakeholder theory and the supply chain finance. Therefore, this part is mainly about a review of these theories, and combining them with the working capital management. The third chapter is about the introduction of the Suning Commerce Group. After a brief review on its development history, it is about the current working capital management strategy in purchasing channel from the two aspects of mode of procurement and supplier relationship.The fourth chapter is performance and risk analysis on that procurement model affects the working capital management in purchasing channel of Suning Commerce Group. Based on the mechanism that procurement model influences working capital management in purchasing channel, make performance and risk analysis on its current purchasing mode. The fifth chapter is performance and risk analysis on that supplier relationship affects the working capital management in purchasing channel of Suning Commerce Group. Based on the mechanism that supplier relationship influences working capital management in purchasing channel, acquire data from its financial statements. And then make quantitative evaluation of its performance using the working capital management performance evaluation index.Next,there is analysis on its risk from two aspects of stakeholder and capital structure. The sixth chapter is recommendations for improvement on the working capital management in purchasing channel of Suning Commerce Group. On the basis of its problems, put forward some suggestions on not reasonable place.The seventh chapter is the conclusion of this paper.The main contribution of this paper is that it based on the theory of channel management as the theoretical foundation, and integrates the stakeholder theory, then selects the typical case of electrical appliance retail-Suning Commerce Group to make performance and risk analysis on its working capital management in purchasing channel.It has important theorical value and practical significance.