Research On BYM’s Working Capital Management Based On Channel Theory

Scientific management of working capital is crucial to the overall operation of an enterprise.The market environment of dairy industry is complex and the monopoly of large dairy enterprises is serious.Many small and medium-sized enterprises achieve scale benefits through expanding business types,which brings a large amount of working capital flow.In this case,enterprises need to carry out reasonable management of working capital to ensure the sustainable development of enterprises.At present,the traditional working capital management method has some disadvantages.In the background of dairy enterprises’ increasing business types and frequent fund flow,the research on the working capital management of dairy enterprises is of great significance for the dairy industry as a whole to find a more appropriate working capital management method and improve the efficiency of working capital management.This paper takes BYM as the research enterprise.From the perspective of channels,it adopts the case study method to study BYM’s working capital management.Based on the working capital management background of the dairy industry,it summarizes the literature at home and abroad,and on the basis of the relevant theories of working capital management,the case study is conducted.Firstly,the working capital management status of BYM is analyzed.Secondly,it evaluates the working capital management performance in the three channels of purchase,production and sales.Finally,it finds that the problems in BYM’s working capital management mainly include: Firstly,high proportion of dairy raw material inventory;Secondly,excessive use of upstream capital by purchase channel;Thirdly,large proportion of other payables by production channel;Fourthly,poor recovery of payment by sales channel.The reasons for the problems are as follows: Firstly,the awareness of inventory management of purchase channel is weak;Secondly,purchase channel does not establish a friendly relationship with the suppliers;Thirdly,the management of current funds in production channel is chaotic;Fourthly,credit policy in sales channel is loose.In view of the above problems and reasons,the paper puts forward suggestions from purchase,production and sales channels respectively for BYM’s working capital management.