Cash Distribution Network Optimization
Correctly managing the cash supply chain in your ATM and Branch network, and accurately forecasting cash requirements can be difficult, time consuming, error prone and expensive. Before you embark on an expensive and time consuming “cash transformation” project, consider Perativ. This dynamic, automated SaaS platform will eliminate data lags, provide you with enhanced cash data, dramatically reduce your idle cash and give you visibility into all the components of your cash ecosystem and positioning you for further cash transformation thereafter.
Ensuring adequate cash in ATMs and Branches to meet customer demand cannot be compromised. However, to achieve this cost effectively is very difficult. In order to optimize cash in a bank’s distribution network, two things must happen. First, float must be minimized by eliminating idle cash. The cash buffers throughout a bank’s cash supply chain are one of the main reasons costs of handling cash remain so high. The second necessity for cash optimization is automation and integration of the four core functions at the heart of cash distribution that exist within the bank. The data lags that exist across these interrelated, yet unintegrated functions help to drive cash processing and distribution costs up.
Most banks use cash forecasting software and set at least 3 key cash forecasting objectives:
- Avoid cash out situations - Ensure enough cash at each distribution point
- Minimize CIT costs for loads and returns
- Minimize idle cash required to deliver forecasted cash
However, these cash forecasting objectives CANNOT BE ACHIEVED BY CASH FORECASTING.
Cash forecasting is just one of the four core operating areas within the bank that are necessary to achieve these objectives. Optimizing cash forecasting alone will help but it cannot bring cash supply chain network costs down substantially. To achieve breakthrough results and achieve these objectives, banks’ cash management software should address the entire cash cycle, automating and integrating the four core functions: load compliance, treasury reconciliation, cash forecasting, and bulk cash ordering. The Perativ cash optimization solution automates and integrates these functions, supporting your teams and creating a synergistic system.