Struggle to Balance: Supply Chain Practices of China Resources Henan Pharmaceutical Company (A)

Xiande Zhao (First Author), Feng Yu (Participant Author), Liang Wang (Participant Author)

Research output: Other contributionCase Studies

Abstract

This case consists of Case (A) and Case (B). In Case (A), as a distributor, CR Henan Pharmaceutical Company suffered from a big problem in cash cycle, which resulted from short accounts payable turnover period, unsatisfactory inventory and long short accounts receivable turnover period in its supply chain. CR Henan Pharmaceutical Company was thinking about how to improve this unfavorable situation from the perspective of management. In Case (B), CR Henan Pharmaceutical Company developed a Balanced Gross Margin Model and SVC system, which improved its cash cycle significantly by performance appraisal, operation monitoring, self-motivation and supply chain finance.
Original languageEnglish
Number of pages16
Publication statusPublished - 26 Aug 2017

Case number

OMS-17-464

Case normative number

OMS-17-464-CE

Case type

Field

Update date

2017-09-21

Published by

China Europe International Business School

Keywords

  • Supply Chain Finance
  • Supply Chain Management
  • cash cycle period
  • cost accounting
  • performance appraisal

Case studies discipline

  • Accounting
  • Operations & Management Science
  • Finance

Case studies industry

  • Transportation and Warehousing
  • Wholesale Trade
  • Health Care Services

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