Study On Optimization Of Cash Flow Managment Of Company A's Supply Chain

With today's accelerated development of economic globalization,It is obvious that the traditional management model has been too slow and inefficient and it is being phased out in the rapid development of enterprises.Therefore,it has been replaced by a new management theory based on the development of information technology,namely supply chain management.In supply chain management,the use of capital flow,information flow and schedule is the key issues determining the success of supply chain management.Therefore,these issues have become the main issues to be researched by enterprises.However,as the government puts forward the "The Belt and Road Initiative" and " Asian Infrastructure Investment Bank",therefore a large number of talented people pour into the entrepreneurial tide,there are many excellent start-up companies in China an most of the founders of these companies are very ideal,ambitious,full of technical background and so on.But for a start-up company in this kind,it can not get the support of relevant resources in a short time owing to their shortage of products and lack of market recognition,among which the most important related resources is capital.Simply speaking,the first thing these start-ups need to do is to broaden sources of income and reduce expenditure under this background,namely how to use cash flow well and how to manage cash flow well.In the operation of a company,cash flow is involved in many aspects,including the deepest and most extensive in the supply chain,because the cash flow goes throughout the process of logistics,information flow and capital flow in the supply chain all the time.This paper is written on this background.Firstly,according to the industry environment of Company A and the operation status of supply chain for the time being,it is found in this paper that there are many problems in cash flow management of Company A in the early stage of its start-up.The equipment produced by Company A is relatively high-end at the technical level,but the cost is also relatively high,therefore the cash flow gap in need is also very large.The research finds that Company A has many problems in cash flow management within the management of supply chain,for example,managers' weak management ability,information systems being not in place due to the problems involved in inadequate management,the lack of planning management,account management and material price system in the supply chain,etc.,the cash flow operation of Company A is difficult in the operation process,and even leads to the breakdown of cash flow.Secondly,according to the problems found in Company A,I visited some enterprises similar to Company A,discussed their cash flow operation in supply chain,and also visited the managers of various departments of Company A to understand the difficulties and their demands.Finally,according to the specific situation of Company A and on the basis of supply chain and cash flow management,Company A decides to optimize it in four dimensions,namely optimizing the calculation method of supplier's account cycle,payment of arrears to suppliers,ERP system,as well as production plan and procurement outsourcing/procurement budget/supplier's sourcing,etcIn the process of optimization,this paper solves the problems of process management and data collection of Company A,making the cash flow problem in supply chain operation clear gradually.In this process,the waste of resources and poor management in supply chain are also gradually highlighted and cash flow has also been effectively controlled in supply chain operation,and there will be no longer sudden rupture problem.It is found from all the papers and related works that there are very few descriptions of cash flow optimization management in enterprise supply chain;Moreover,the research on cash flow optimization in supply chain management of large companies has little reference significance for start-ups owing to their different environments.This paper can be used as a reference for start-ups in cash flow management in supply chain operation.