Research On Working Capital Management Of A Retail Enterprise Based On Supply Chain

In recent years,China’s commercial retail industry has been facing challenges and pressures from the booming e-commerce trading market,with less and less development space.The market competition between traditional retail industries has also become increasingly fierce.In response to this competitive pattern,the commercial retail industry has also begun to enter the operation track of e-commerce online stores on the one hand,and on the other hand,it has increased the layout of traditional market stores to seize effective market share,which has led to the expansion of the business scale of the commercial retail industry,but the operating efficiency continues to decline or even loss,and the efficiency of working capital continues to decline.With the increasing risk of economic downturn in China and the combined impact of epidemic factors,it is even worse for the commercial retail industry.With the change of the market environment,although retail enterprises are constantly adjusting their business strategies,trying to improve the efficiency of working capital,reduce costs and increase efficiency,they eventually lost money due to poor results,and were warned by the CSRC to suspend trading.This requires standing on the supply chain dimension,reflecting on the decline of enterprise operating efficiency and exploring the root causes of the low efficiency of working capital,and putting forward effective coping strategies and plans,so that enterprises can get rid of operational and financial difficulties.This thesis takes A company,a large retail enterprise of wholesale and retail household appliances,as the research object,to analyze the current situation of supply chain and working capital management of A retail enterprise,and on this basis,build an evaluation model of working capital efficiency and evaluate working capital efficiency of A enterprise.By comparing the relevant indicators of working capital efficiency of A enterprise with the retail industry,it is found that the working capital management level of A enterprise is low,The internal and external supply chain costs remain high.Research has found that A retail enterprise has been occupying suppliers’ accounts receivable for a long time without compensation,leading to significant short-term debt repayment risks for the enterprise;There are too many physical stores set up to increase market share,resulting in an extended turnover period of goods;The low efficiency of supply chain organization leads to severe inventory backlog,which makes it difficult for enterprises to turn over funds and continuously increases borrowing,resulting in a vicious cycle of multiple factors.According to the goal of supply chain management to control costs and improve efficiency,a series of measures to improve the efficiency of working capital are proposed: greatly reduce physical stores and make major physical stores into scene oriented commodity experience stores;Establish online platform specialty stores where customers can purchase offline products at online prices;Compress warehouse and inventory quantities,optimize supplier strategic partnerships,and adopt a logistics management model that connects brand suppliers to end consumers.Analyzing the working capital management of Enterprise A from the perspective of supply chain not only helps to improve the working capital management level of Enterprise A,but also provides new working capital management ideas for other companies in the industry.