The Research On The Optimization Of Working Capital Management Of L Company On The Base Of Business Process

Human blood provides energy for its survival,and working capital is regarded as the blood of enterprises,thus we can see what role of working capital is playing in the process of enterprises' development.In the process of business development,enterprises should seize the external development opportunities and pay attention to their working capital management meanwhile,to support the healthy and sustainable development of enterprises.In recent years,affected by the slow overall recovery of the international economic situation,China's economic pressure and structural adjustment and other factors,China's economic growth shows a downward trend in general.In the period of that economy develops slowly,many enterprises become impoverished due to the capital chain rupture.Enterprises need to take more attention to the management of working capital in this period.From the perspective of financial management,managing the flow and allocation of fundsis working capital management.However in the practice,in order to achieve better management of working capital,enterprises should put the working capital management into the environment of the supply chain and combine it with business processes.In this way the problem ofworking capital management will be solved.Looking at domestic and foreign enterprises,many enterprises have improved their operating efficiency for playing emphasis on the establishment and improvement of their working capital management system.For example,DELL has used delayed production technology to improve its production process and Haier has carried out two large scaleoptimization of business process.These successful experiences of these well-known enterprises that making use of business process management to enhanceworking capital management efficiencies worth learning to other enterprises.The example of this article is L Company,which is a typical Kitchen appliance industry.This article will take research on how to improve the working capital management of L Company by optimizing its business processes.After overviews of some related contents of working capital management,supply chain managementand business process management and the working capital management system adopted by L company,the working capital of L company is reclassified in the light of three processes——purchasing,production and marketing.Using the annual financial report data from 2011 to 2015 of Lcompany,this paper analyzes the working capital management performance based on the factors and business processes respectively,so as to find out the existing problems of L company's working capital management and the causes of these problems.Thenbased upon the theory of supply chain management and business process management theory,this paper puts forward some suggestions to improve the working capital management of Lcompany from the perspective of business process optimization.