ATM Cash Management: Driving more profitability from the same business Presented by: Mike Plante, Head of Business Development Daniel Cramer, Senior Analyst Presentation Overview 1) Introduction 2)
Download ReportTranscript ATM Cash Management: Driving more profitability from the same business Presented by: Mike Plante, Head of Business Development Daniel Cramer, Senior Analyst Presentation Overview 1) Introduction 2)
Slide 1
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 2
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 3
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 4
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 5
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 6
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 7
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 8
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 9
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 10
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 11
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 12
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 13
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 14
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 15
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 16
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 17
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 18
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 19
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 20
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 21
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 22
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 23
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 24
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 25
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 26
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 27
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 28
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 29
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 30
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 31
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 32
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 33
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 34
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 35
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 36
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 37
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 38
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 39
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 40
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 41
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 42
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 43
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 44
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 2
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 3
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 4
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 5
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 6
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 7
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 8
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 9
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 10
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 11
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 12
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 13
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 14
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 15
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 16
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 17
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 18
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 19
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 20
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 21
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 22
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 23
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 24
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 25
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 26
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 27
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 28
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 29
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 30
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 31
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 32
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 33
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 34
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 35
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 36
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 37
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 38
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 39
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 40
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 41
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 42
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 43
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk
Slide 44
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Presentation Overview
1) Introduction
2) Cash Management Cycle
3) Case Study: Bank
4) Case Study: Independent ATM Deployer
5) Key Points
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst
Introduction
About CMS
1991
Industries we
work with
CMS was founded
ATMs
Skilled
team of consultants &
mathematicians
Foreign Currency
Financial Institutions
Vaults
Cash
ordered/sold by
our systems
every year
$56BN
20,000
Sites managed
including
FX bureaux, ATMs,
vaults, banks & shops.
CMS manage sites across
28 Countries
Introduction
Interest Rates
Supply Chain Constraints
Operation Choke Point
EMV
Cash Management
Savings
Phone Card Revenue
DCC Revenue
Cash management will be the single biggest impact you can have on
your business in 2015.
ATM Fixed Costs
Staff
Equipment
& Software
Processing
Fees
Maintenance
Rent
Utilities
Comms
Insurance
Security
Intelligent cash management allows you to turn
your cash supply chain into a variable cost.
Cash
Management?
Industry Benchmarking
Comparing costs against your peers isn’t the right way to
benchmark your business…
Gain a
competitive
advantage
Cash Cycle Management
Cash Cycle Management
Forecasting
Traditional approach
Cash Cycle Management
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Forecasting
Forecasting
Bank
Cash
Center
Cash
Center
Rebanking targets
Residual costs
Replenishment
Residual
ATM
Cassette
management
Lead time analysis
Bank
Forecasting
Bank
Cash
Center
Cash
Center
Global withdrawal
limits
Replenishment
Lead times
Residual
ATM
Cash costs
Depot-by-Depot Performance
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Service level
agreements
Emergency cash
replenishments policy
Depot-by-depot
performance levels
Replenishment
Lead times
Residual
ATM
Recycling
Single ATM Schedule Comparison
Replenishment
Forecasting
Schedule Options
Bank
Cash
Center
Cash
Center
Performance
management
Prices per visit
Route management
Replenishment
Simulations to
optimize schedules
Residual
ATM
Time windows
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Cash
Center
Cash
Center
Availability levels
Volatility of demand
Proximity to
alternatives
Replenishment
Risk policy
Residual
ATM
Denomination
profile
Residual
Forecasting
Bank
Example Residuals Reduction
Cash
Center
Cash
Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
ATM
Collection profiles
Cash Center
Forecasting
Bank
Cash
Center
Cash
Center
Reconciliation
Cassette
management/auditing
Replenishment
Cost of residuals
Residual
ATM
Lead time analysis
Areas of Control
Forecasting
Bank
Forecasting
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: Bank
Case Study: Bank
The
Business
•
Mid-sized US bank
•
Fully outsourced armored transport
(multiple carriers)
•
The
Challenges
Internal cash management solution in place
High transport costs - Current solution does not
seek out cost savings and efficiencies.
Case Study: Bank
Scheduling Improvements
Simulate
Armored
Carriers
Simulate and model
scheduling options
Demand
Cross-reference scheduling
options with demand
Work with armored carriers to
implement most efficient option
Rank
Rank options by cost
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$1/1/2014
2/1/2014
3/1/2014
Replenishment
Reduce bandwidth issues
4/1/2014
5/1/2014
6/1/2014
Withdrawal Demand
Improve delivery success rates
7/1/2014
Case Study: Bank
Outcomes
Balance reductions of
30.5%
Total supply chain
cost savings of
27.8%
Increased profitability
of operation
Case Study: Bank
Monitoring
Intelligent scheduling is a continuous process
Depots & Routes
Demand
$60,000
$50,000
$40,000
$30,000
100%
98%
96%
94%
92%
90%
$20,000
$10,000
88%
86%
84%
$-
82%
80%
Depot 1 Depot 2 Depot 3 Depot 4 Depot 5 Depot 6 Depot 7 Depot 8
Evolving simulations for changing
demand profiles and constraints
Armored transport monitoring and
reaction. Depot and route service
level monitoring
Case Study:
Independent ATM Deployer
Case Study: IAD
The
Business
The
Challenges
•
100 ATMs
•
Internal Armored Transport
•
Limited Cash Supply
•
Cost of Cash: 10%
Wanted to reduce costs, grow
network without extending line of
credit and increasing staff levels
Case Study: IAD
Forecasting
Bank
The Before and
After of Supply
Chain
Optimization
Cash
Center
Cash
Center
Replenishment
Residual
ATM
Case Study: IAD
Forecasting
Before
Forecasting
Bank
Forecasting the day before
After
Cash
Center
Cash
Center
Daily reforecasting to monitor demand
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: All Supply Chain Costs
ATM
Case Study: IAD
Bank
Before
Going multiple times a week wasting time
and money
After
Forecasting
Bank
Cash
Center
Cash
Center
Designated days with optimized withdrawal
amounts
Impact
Efficiency Increases
Cost Savings: Note Supply
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Forecasting
Bank
Excessive amounts withdrawn and lack of
robust processes
After
Cash
Center
Cash
Center
Excess reduced; Process implemented
Impact
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Replenishment
Residual
ATM
Case Study: IAD
Replenishment
Before
No clear indication of when the next
replenishment would take place
After
Forecasting
Bank
Cash
Center
Cash
Center
Replenishment on optimum route and with
more advanced notice
Impact
Replenishment
Residual
Efficiency Increases
Cost Savings: Armored Transport
ATM
Case Study: IAD
ATM
Before
Forecasting
Bank
Excess cash in ATM – High average balance
After
Cash
Center
Cash
Center
ATM average balance reduced
Impact
Replenishment
Residual
Balance Reductions
Cost Savings: Interest & Insurance
ATM
Case Study: IAD
Residual
Before
Excessive residuals
After
Forecasting
Bank
Cash
Center
Cash
Center
Optimized residuals for each ATM
Impact
Balance Reductions
Cost Savings: Banking & Interest
Replenishment
Residual
ATM
Case Study: IAD
Cash Center
Before
Lack of accurate reconciliation process
After
Forecasting
Bank
Cash
Center
Cash
Center
Robust and transparent reconciliation process
Impact
Time Savings
Efficiency Increases
Replenishment
Residual
ATM
Case Study: IAD
Balances
Costs
Efficiency
Balance reductions of
Cost savings of
Load reductions of
36.0%
35.2%
34.0%
Pre cash management
Post cash management
Savings (%)
Reductions
Balances
$848,908
$543,300
36%
$305,607
Costs
$141,227
$91,512
35%
$49,715
Loads
5,564
3,672
34%
1,892
Optimization = A Platform for Growth
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
$900,000
Cash Resource
$800,000
Additional capital
for 49 ATMs
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Pre-Cash Management
Post-Cash Management
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
6,000
Armored Transport Constraint
5,000
Optimized
replenishment
schedule allowing
bandwidth for 45
ATMs
4,000
3,000
2,000
1,000
Pre-Cash Management
Post-Cash Management
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of
$250,000
Key Points to Take Away
Key Points to Take Away
Cash management is far more than forecasting. Look at each element in isolation
Create individual profiles for each machine in your network
Use simulation techniques to stress test your supply chain
Cash management should be one of the key driver s for profitability!
Thank You
If you would like to speak to CMS about this presentation or about the Free CMS Cost of Cash Audit,
please contact Mike Plante, Head of Business Development:
US
t. +1 312-288-8431
[email protected]
www.cms-cashmanagement.com
UK
t. +44 (0) 1925 420 781
[email protected]
www.cashmanagement.co.uk