The Research On Working Capital Management Of H Corporation Based On Supply Chain

Working capital is crucial to the financial management of the company.In the fierce market competition environment,the turnover efficiency of working capital will affect the normal production and business activities of enterprises.Therefore,companies should pay full attention to the management of working capital.In the past,the management of working capital was only focused on the evaluation indicators of individual financial items,and it was difficult to adapt to the complex and volatile market environment.The research on the integration of supply chain management theory and working capital management has received extensive attention from the academic community.It focuses on how to deal with the relationships between companies on supply chain nodes and the optimization of the overall supply chain structure,and implements operations in the company’s production and operations.It proposes that companies should implement the concept of working capital management in production and operation which can comprehensively and systematically improve the company’s working capital management efficiency.The petroleum engineering industry in China has a fierce market competition.Therefore,working capital management is very important for petroleum engineering companies.This paper examines the company’s working capital management issues from the perspective of supply chain management.Firstly,this paper summarizes the development history of working capital management and theory of supply chain management by collecting and consulting literature;secondly,it analyzes the current working capital management of company H using the traditional operating funds management model which believes that the company’s current working capital management model has many deficiencies.Afterwards,we introduce the working capital management model from the perspective of supply chain and analyze the operating funds management performance of company H from the perspective of supply chain and put forward corresponding problems;Finally,from the perspective of supply chain,we put forward suggestions and safety precautions for the improvement of company H’s working capital management issues.This paper has obtained the following conclusions:Firstly,company H’s current working capital management methods is relatively backward,it’s necessary to introduce the working capital evaluation index from the perspective of the supply chain:working capital turnover period in procurement,working capital turnover period in construction,working capital turnover period in collection.This is a breakthrough to the traditional working capital management performance evaluation system;Secondly,aiming at the existing problems of company H’s working capital management from the perspective of supply chain,it proposes improvement proposals for procurement,construction and collection.The protection measures hope to provide some references for the petroleum engineering industry in China in improving the management of working capital.