Research On The Working Capital Management Of Jiuzhoutong Based On The Channel Perspectiv

Economic globalization is driving the rapid growth of the world economy,while helping to expand the reach and scope of all businesses,cash transfers in enterprises are also becoming increasingly frequent,and the working capital and its management throughout the production and operation of enterprises are more and more important.In recent years,as the shortcomings of traditional working capital management research methods,such as lack of consistency and integrity,have become increasingly apparent,the need to introduce new perspectives into working capital management research has become increasingly important.Against this backdrop,a channel-based approach to working capital management has emerged that integrates supply chain management and other theories.It is favored by scholars because it complements the shortcomings of traditional approaches to working capital management and at the same time can contribute to further optimization of a company’s management structure.As the link between drug production and drug market,drug distribution plays an important role in the sustainable development of China’s drug market,as new healthcare reforms develop and the industry’s room for survival and development continues to shrink,studying the working capital management of industry companies from a distribution channel perspective,identifying problems,analyzing their causes,and proposing appropriate optimization measures will help ensure the healthy development of pharmaceutical trade companies and help the industry as a whole develop at a high level.In this paper,Jointown,a representative private company in the pharmaceutical distribution sector,was selected as the subject of study,and its working capital management was studied from a channel perspective using case studies,qualitative and quantitative analysis.Based on the analysis of the Jointown’s working capital management policies and underlying working capital position,the article conducts an in-depth study on the current situation of working capital management in procurement,production,marketing and finance channels through a vertical comparison of relevant financial indicators of the enterprise from 2017 to 2021 and a horizontal comparison with Shanghai Pharmaceutical and Huadong Medicine,respectively,then based on the results of the above analysis,article identifies and summarizes that the working capital management of Jointown has the problems of over-utilization of suppliers’ funds in the procurement channel,slow turnover of other receivables in the production channel,low level of finished goods inventory management and significant decrease in the efficiency of accounts receivable management in the marketing channel,and over-reliance on short-term borrowing in the financial management channel,and analyse the causes of problems in the context of the industry and the company’s business strategy,then in order to improve the working capital management level of enterprises and help them achieve better development,the working capital management countermeasures of each channel are proposed,for example,Jointown’s procurement channel needs to strengthen the maintenance of good relations with suppliers and formulate scientific and reasonable procurement plans,etc.Working capital management protection strategies are proposed at the overall level,such as strengthening the connection between business and finance,etc,and it is also hoped that they can serve as a model for other enterprises in the same industry and promote the healthy development of the pharmaceutical industry.