Research On The Working Capital Management Of A Frozen Food Enterprise Based On Supply Chain Perspective

In the last few years,with the progressive development of China’s frozen foods market,competition among enterprises in the frozen food industry has intensified,but due to the product attributes of frozen food,its product homogeneity is high,each frozen food enterprise gradually loses its bargaining power for upstream suppliers and downstream distributors,and gradually relaxes its credit policy for upstream and downstream enterprises,resulting in a large number of accounts receivable,prepaid accounts,etc.,which take up a large amount of enterprise working capital and affect enterprise operating efficiency.As a result,the working capital management of quick-frozen food enterprises is urgently studied.However,the traditional working capital management model is usually element-based,focusing on the analysis of the internal financial situation of the enterprise,focusing on the ratio of financial data in the static situation,ignoring its dynamic relationship with the process of the enterprise,which is not suitable for frozen food enterprises to meet the needs of market competition.At the same time,because the procurement,production and sales activities of frozen food enterprises are very frequent,and their business activities can form a more complete supply chain,therefore,this paper introduces the supply chain perspective to start the study of working capital management of frozen food enterprises.This paper takes A frozen food enterprise as the research object,firstly,we analyze the current situation of A frozen food enterprise’s working capital management in terms of enterprise’s financial situation,working capital management structure and traditional element-based working capital management method,and find that the traditional working capital management method cannot effectively analyze the specific problems of enterprise’s working capital management.Secondly,we introduce the supply chain perspective to reclassify the working capital of A frozen food enterprise and reanalyze the working capital management of the enterprise based on the supply chain link.After the analysis,the following problems exist in the working capital management of A frozen food enterprise: the procurement process occupies too much capital from upstream suppliers,the procurement model and procurement process are relatively backward,and there is a lack of stable supplier cooperation relationship;the production process adopts an unreasonable production model and a high percentage of bad debts in other accounts receivable;the sales process has insufficient accounts receivable management ability and a single sales channel.Finally,based on the above problems,this paper proposes the following optimized countermeasures and safeguards for the working capital management of A frozen food enterprise from the perspective of the supply chain: the procurement link reduces the occupancy of upstream capital,makes reasonable use of commercial credit,adopts the JIT procurement model,optimizes the procurement process,and selects high-quality and stable suppliers and cooperates to establish strategic alliances;the production link adjusts the production mode of the enterprise in line with the trend and adopts the production model combining pull production The production link adjusts the production mode of the enterprise,adopts the production model combining pull production and batch customization,and standardizes the management of other correspondence and regular verification;the sales link strengthens the management of accounts receivable,and strengthens the construction of e-commerce channels to broaden the sales channels;the strategic level suggests making a supply chain-oriented management system and realizing the safeguards of internal and external information sharing of the enterprise.This paper studies the working capital management of A frozen food enterprise from the perspective of supply chain,and hopes that the proposed measures can help A frozen food enterprise to effectively solve its working capital management problems,and also hopes that this paper can help and draw reference to the working capital management of other enterprises in the frozen food industry.