Efficiency, Power, and Risk in the Supply Chain: An Analysis of Working Capital Management of Haday Co. Ltd

Xiangxian Zhu ()
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Xiangxian Zhu: Guangzhou Huamei International School

A chapter in Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026), 2026, pp 86-93 from Springer

Abstract: Abstract This study evaluates the working capital management efficiency of Foshan Haday Flavouring & Food Co., Ltd., from a supply chain perspective for the period 2019-2023. Taking Haday as a case study and using financial ratio analysis, it is found that the company’s market dominance results in a consistently negative Cash Conversion Cycle and high economic efficiency. This is accomplished by extending the terms of payment made to suppliers (leading to a high Days Payables Outstanding or DPO) and enforcing cash-on-delivery with distributors (leading to a low Days Sales Outstanding or DSO). However, this power-centric model conceals significant risks, such as excessive inventory in the distribution channel. Such excessive inventory distorts market demand signals and shifts financial pressure to the company’s downstream distributors. For sustainable development, this study suggests adopting supply chain finance tools (e.g., reverse factoring) and establishing a unified digital platform to align the interests of all stakeholders and enhance the resilience of the value chain.

Keywords: Supply Chain Management; Working Capital Management; Cash Conversion Cycle; Efficiency Analysis; Systemic Risk (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-642-5_10

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