Accounts Receivable Risk Management in Jiuzhou Tong: A Macro-Micro Combined Perspective

Risk Management of Accounts Receivable in Jiuzhou Tong

Abstract: Accounts receivable are the monetary funds that an enterprise is expected to receive from its customers in the future as a result of selling goods. They are a crucial form of liquid assets for enterprises and have a strong impact on their short-term debt-paying ability. Domestic research on accounts receivable risk management in enterprises has formed a corresponding theoretical system, but this system only analyzes accounts receivable risk management from a specific micro perspective and has certain limitations. It has not combined macro and micro perspectives to further study and analyze the entire process of accounts receivable risk management before, during, and after the event, which is not conducive to enterprises conducting systematic, comprehensive, and complete accounts receivable risk management. In recent years, due to intensified competition in the pharmaceutical industry, the industry has made credit sales its main sales method. Although the sales scale of enterprises has expanded with credit sales, many problems have emerged due to accounts receivable. Reasonable and scientific management of accounts receivable can improve competitiveness, reduce operational risk, increase the turnover rate of funds, and increase profit margins. However, due to the problem of many enterprises not attaching importance to accounts receivable management and the imperfect pharmaceutical management system in China, accounts receivable issues have plagued many pharmaceutical companies.

Therefore, this article intends to use Jiuzhou Tong Pharmaceutical Group Co., Ltd. as an example to study a new macro-micro combined perspective of the entire process of accounts receivable risk management before, during, and after the event. By studying and analyzing the current situation of accounts receivable risk management at home and abroad, the types of accounts receivable risks and their influencing factors, a complete, systematic, and comprehensive macro-micro combined framework for accounts receivable risk management before, during, and after the event (hereinafter referred to as APRM framework) has been established. The framework considers economic factors such as the macro national economy, fixed asset investment, and residents' consumption levels, as well as national credit mechanisms, legal environments, industry competition, industry indicators, and the awareness of accounts receivable risk management of micro-enterprises. This new APRM framework is used to study and analyze the accounts receivable risk management of the company. In the case study, this article analyzes the causes of accounts receivable risk in Jiuzhou Tong from macro, medium, and micro perspectives, based on the APRM framework, and divides accounts receivable risk management control into three stages: before, during, and after the event. Measures to strengthen the entire process of accounts receivable risk management in Jiuzhou Tong are proposed to facilitate more comprehensive and systematic prevention of accounts receivable risks.

Keywords: accounts receivable; enterprise credit risk management; whole-process credit risk management; macro-micro combination; pharmaceutical distribution enterprises; Jiuzhou Tong.