Research On The Working Capital Management Of FAWCAR

Recently,the sales volume of automobiles ranks as among the most profitable industries.The growth of automobile industry cannot be separated from the synergetic development of upstream and downstream industry chains.This paper finds out FAWCAR's problems on the preparation of dimensions,inventory capital cash flow occupancy,bank acceptance,through the analysis of its working capital,especially by the analysis of channel-based working capital management and industry chain.It also devotes to discover the reason why FAWCAR failed to provide OEM financing support to the financing demand of industry chain,on the background of synergetic development of industry chains.In view of the problems above,firstly,proposes the improvement in working capital funds of FAWCAR,the cash flow statement "receivable" dimension,takes the OTD improvement plan and putting forward a reasonable bank draft interest free period;secondly,to the dealer's financing needs,presents the establishment of dealer financing network,reducing dealer financing pressure;thirdly,according to the supplier's financing needs,suggests the establishment of supplier financial sharing platform to support supplying financing;finally,creates “Partner Support Fund”,invested by the FAWCAR staff independently,to form employees and partners(distributors,suppliers)business stickiness.To achieve the above schemes,the author needs the support from the enterprise organizational structure,project management,IT system.He puts forward the implementation of security of automobile industry chain collaboration of FAWCAR capital management under the background of countermeasures from these aspects,such as the establishment of FAWCAR industry chain,collaborative financial working group,setting up OTD improvement projects in the financial platform;supplier sharing process,need to achieve full line operation;in the process of creating “partner support fund”,mobilization,publicizing are needed.The coordinated development of the automobile industry chain should receive the support of the vehicle manufacturers-core enterprises in the industrial chain to assume some responsibility.When it comes to the influencing the development of the automobile industry chain working capital,automobile industry chain should be "win-win".