Characteristics of the formation of working capital management policy providing production and sales process

Economy and management of the enterprise

Nowadays, the development of the domestic industry is the main task of an economic strategy of the country. The development of processing industries that include the enterprises of timber processing complex has to become the key issue. The improvement of the management of the working capital that serves the production and marketing process of the industrial enterprise is one of the essential problems of the modern production management. The article focuses on the peculiarities of the implementation of the production and marketing activities causing the necessity to develop a new mechanism of the performance management of limited reverse resources to receive the highest economic results from all financial and economic activities. The existing approaches to the development of the management policy are outlined. However, each individual enterprise has to form an individual technique (tools and methods) in the developing situation. The authors show that the previous methods of the working capital management of manufacturing enterprises (rationing) in a modern unstable and unpredictable economy do not work successfully. It is noted that the exiting methods, used by western companies and economists, cannot be effectively implemented in the current business environment. Therefore, under present circumstances it is necessary to provide the enterprises with some operational adaptation ways of the regulation of ensuring production and marketing process with current assets. It is essential for each enterprise to develop the working capital management policy individually. Only its own resources and interests should guide it. The authors draw a conclusion that the duration of the turnover used for the working capital and the established profitability at every stage and in general for PSP should act as the performance criteria of an adopted policy of the working capital management.