Your Cash Management Arrangements Shouldn’t Be Swept Under the Rug, Here’s Why…

10th April 2018
George Willis
George Willis

While it’s true that cash volumes are (slowly) falling in many countries around the world, the hysteria surrounding the “death of cash” is an overplayed narrative that is more hype than actual substance. Cash volumes remain high overall around the world, and cash continues to be a widely-used, and valued, form of consumer payment.

The industry must stop discussing whether cash is here to stay, and focus on helping merchants to optimize and improve their arrangements. Too often in the merchant community the focus remains firmly on cards and optimizing the high fees associated with accepting them, but in reality, getting your cash arrangements right presents just as much of a cost saving opportunity for the merchant community.

At CMSPI, we help merchants optimize their cash management by holistically reviewing cash arrangements. We assess current processes – providing visibility and analysis into the savings and opportunities for efficiency at each site in a merchant’s network. We work with merchants to implement arrangements that consider their unique operational processes, and balance costs, cash-flow and risk management.

That being said, changing your cash arrangements is a complex task which takes coordination and careful management of multiple areas of your supply chain. We’ve compiled a list of three key questions for merchants to consider before starting any optimization projects.



1. Do you understand your industry’s unique requirements?

It’s important to fully understand the needs of your business and the industry you operate in as each industry has its own unique complexities. Supermarkets, for example, have very different cash management requirements compared to hotels. Restaurants have to take into account employee tips, some stores have ATMs within the building, and high-volume stores may use cash recyclers or other cash office technology solutions. Ensure your suppliers are communicating with you on a regular basis and that they understand the complex needs of your business.



2. Are you up to date with key industry changes?

The cash industry is a fast-faced environment and it can be hard to stay up to date with all the changes. Remaining informed on issues including: rising fixed cost of cash collections, declining cash volumes, bank branch closures, mergers and acquisitions, and new product offerings, will ensure you are best-placed to make strategic decisions about your arrangements. At CMSPI we provide ongoing monitoring and support, and our consultants will ensure you remain informed of any changes in the industry that may affect you.



3. Do you have the internal resource and knowledge?

You may want to consider using an external consultancy to review your cash management. Cash arrangements across a vast nationwide estate are complex. The internal resource and scientific analysis required to individually assess each site in your network can be too time-consuming and complex for internal teams to tackle. At CMSPI, we use our knowledge and economies of scale to implement market-leading, scientific arrangements for our clients. You retain executive control throughout the project, but we require minimal resource from you and your team.

In Summary

The industry must stop debating whether cash is here to stay and start improving capabilities and offerings to merchants instead. In the far distant future cash may indeed become a rarely used form of consumer payment, replaced by cards, mobile wallets and other alternative payment methods. But, until that day, merchants need to carefully consider their cash arrangements on a regular basis to ensure they remain competitive and market-leading. Armored transport providers, banks, ATMs and cash office technology suppliers are continually improving and extending their product offerings, so what might not have been possible (or was too cost prohibitive) may become a feasible solution for your business in the next 3-6 months. Stay up to date, monitor your arrangements closely, and don’t be afraid to ask for expert advice.

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