Study On The Improvement Of Working Capital Management Of Tianrun Dairy Co., Ltd. From The Perspective Of Supply Chain

Working capital has the strongest liquidity among all assets of an enterprise,which is of great significance to the survival and development of an enterprise.In the increasingly fierce market competition,working capital management has gradually become the focus of enterprise financial management.The research on working capital management under the traditional mode tends to focus on the management of internal risk and capital efficiency,focusing on the management of individual funds but ignoring the change of overall funds,focusing on the static ratio but ignoring the dynamic changes.Thus,it gradually loses touch with the business process of enterprises,which cannot meet the needs of the development of practice.With the development of supply chain theory,it is an inevitable trend to integrate supply chain management with working capital management.In this mode,the study of working capital is no longer confined to the enterprise,but the supply chain as a whole.It no longer just focus on the financial level,but the financial level and business level.Based on the theory of working capital management,the theory of supply chain management and the theory of working capital management,this paper,taking Tianrun dairy industry as the research object,studies the constituent elements of working capital of Tianrun Dairy on the analysis of the overall situation of working capital of Tianrun Dairy.The paper analyzes the allocation of working capital of Tianrun Dairy from three aspects(i.e.procurement,production and marketing),and compares it with Yili Stock,the leading dairy company in the industry,by using the performance evaluation index of working capital management.It is found that Tianrun Dairy has some current situation in working capital management,such as unreasonable working capital allocation and weak working capital turnover,which make the enterprise face some financial risks.Based on further analysis of relevant data of Tianrun dairy and Yili group and their industry mean value,the problems and the root cause of working capital management in Tianrun dairy are summarized.The problems in the purchasing process are mainly due to the limited supply of self-owned milk,low efficiency of raw material inventory management and accounts payable turnover days are slightly longer.The problems in the production process are mainly due to the lack of investment in product research and development and the non-standard management of current payments.The problems in marketing are mainlydue to the unbalanced distribution of sales market,the long period of accounts receivable and the need to strengthen customer relationship management.Based on the perspective of supply chain,this paper combines with the specific conditions of Tianrun Dairy Industry.From three stages: procurement,production and marketing,it puts forward the followings: the diversification and expansion of milk sources,the informationization of procurement management,the management of suppliers,the increased investment in product research and development innovation,more attention to technological innovation in production,procedure-based current account management,balanced development of the national sales network,more management of receivable accounts and a good cooperative relationship with customers and other countermeasures.It also puts forward the corresponding security measures,aimed at improving the working capital management situation of Tianrun Dairy,and then the overall performance of Tianrun Dairy,thus providing a reference for relevant enterprises working capital management.