International Shoe Store
This client engaged with CMSPI to conduct a complete review of its payments arrangements across its card processing, armored transport, cash processing, DCC and tax-free shopping cost lines.
This client is an international corporation that owns and operates a chain of over 1,500 shoe and accessory stores in multiple countries, serving more than 200 million customers every year.
Following a successful project reviewing its European payments processes, this client re-engaged with CMSPI to assess the effectiveness of its armored transport arrangements in the US. The client was confined within a long-term contract with their incumbent vendor and therefore any improvements CMSPI were to make had to be done so within the existing agreement.
CMSPI analyzed all available cash collection data, including; cash collection costs, contract commercial terms, daily cash takings, safe limits, current collection and delivery schedule and insurance/safe limits. CMSPI utilized its proprietary Pinpoint:Cash software suite to review over 120 different cash collection options for each site, taking into account risk, cash profiles and other factors. Combining the analysis output and CMSPI’s extensive market knowledge, CMSPI was able to assess the effectiveness of the client’s commercial arrangements and collection and delivery profile, benchmarked against its peers and advising on industry best practice.
CMSPI presented the client with a number of different schedule options to give differing balances of cost vs cash flow vs risk. The schedule agreed reduced the overall budget by over 20% while at the same time reducing the time it took for cash to be credited to the bank. These cost savings and cash flow improvements were able to be attained within the initial requirements outlined by the client, i.e. within the current contract and with minimal disruption to the client’s operational arrangements.
Following the project completion, I have to admit I was surprised at how much CMSPI were able to do, mid-contract, and we are really delighted with the results they achieved for us. We have some significant cost reductions without us having to make any major changes operationally or with supplier relationships. Thanks to Elley and Rob and the team for their expertise and I’m sure we will be working with them again in future!