Research On Improvement Strategy Of Jieshite Working Capital Management From The Channel Perspective

The normal operation of an enterprise cannot be separated from the support of funds.The operation process of working capital runs through the entire business process of the enterprise,ensuring the development of the enterprise.However,facing the ever-changing market environment and the innovation of various management methods,the traditional static working capital management model cannot meet the needs of the current dynamic management.The main way to create value for the development of enterprises is to combine the working capital management with the market environment and the specific situation of the upstream and downstream of the enterprise,and make the working capital management closely follow the business operation process of the enterprise through the reasonable integration of resources,while paying attention to the coordination of external relations.Jieshite logistics company is one of the representatives of many rapidly developing logistics trade enterprises in China.The prosperity of the logistics trade industry has intensified market competition in recent years.However,the characteristics of transportation and trade business,such as many circulation links,capital intensive and large amount,extensive management and so on,leading to more problems in managing funds.In this paper,the working capital of Jieshite logistics company is analyzed in detail.By comparing the two logistics trading shareholder companies,the current working capital management of Jieshite company is controlled from a single financial management aspect,and the scope of analysis is extended to the overall operation management of the company.The problems about current working capital management of Jieshite company are analyzed from four aspects:profitability,liquidity,risk and financial flexibility.Furthermore,it is concluded that the classification and strategy of the working capital management of Jieshite company are unreasonable,resulting in the low efficiency.This study proposes the combination of working capital management and channel theory.From the channel perspective,the working capital management combined with the characteristics of logistics trading companies is divided into procurement activities,marketing activities and financial management activities,and the improvement strategy of working capital sharing is constructed.Meanwhile,in order to ensure the smooth implementation of the improvement strategy,the management,system and human resources also need to be improved.From the perspective of channel,the managing working capital can link all business of Jieshite company,and the operation process of working capital can be showed clearly.Furthermore,it can judge and tap the efficiency and potential of working capital operation,and provide the best quality services for the company to realize enterprise value.