Research On Working Capital Management Of Construction Enterprises Based On Supply Chain

As the basis of the entire capital movement, working capital contributes to maintain the daily operation of a company. The comprehensive working capital refers to lots of uncertain factors, which means the working capital management could measure the company’s harmony and risk resistance capacity in the complicated competition environment. Recently, working capital has become more fragile in the construction enterprises with the intense competition and accidental factors. Hence, the construction enterprises should pay more attention to their working capital management. As the development of modern enterprise management, the new pattern, which combines supply chain management and working capital management bring new energy for companies.The paper aims to deep analysis the working capital management of company A, in order to figure out the potential issues; and then point out the optimized suggestions; accordingly, improve company’s profitability and risk resistance ability. Firstly, describing the current situations of company A’s in working capital management. Secondly, applying the theory of supply chain management to refine working capital, meanwhile evaluating the efficiency of working capital management based on two methods, one is based on working capital elements, and the other one is based on the each link of the supply chain under the working capital process. Thirdly, pointing out the potential issues and their reasons. Finally, giving some suggestions based on the current situations.In conclusion, the paper has addressed three links of company A’s supply chain based on its capital management. In each link, it has shown the optimized design and given some suggestions. Such as, the paper proposes that company A should optimize the scales and structure under the working capital process; meanwhile, they should enhance and ensure the safety of their capital chain; last but not least, they should strengthen their human resources and innovate their management system.The paper has addressed some fresh ideas, through researching and applying the supply chain management into the working capital management, it has deep analyzed the current situations of company A in working capital management; also it has made up the weakness of the traditional method, thus helping the other construction enterprises with their working capital management.