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

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.