Supermarket Chain

This client engaged CMSPI to perform a holistic review of the processes associated with accepting cash and checks, change ordering and the management of cash recycling on site.

This client is a U.S. supermarket chain with over 150 full-service stores, many with gas stations, situated across a number of north eastern states.

This client engaged CMSPI to perform a holistic review of the processes associated with accepting cash and checks, change ordering and the management of cash recycling on site.

Following an initial consultation with this client to scope the requirements of the project, CMSPI consultants visited a number of it’s stores to observe the merchant’s cash and check handling processes and also had in depth conversations with head office personnel about the on-site and head office procedures. The CMSPI team then began an in-depth analysis of the client’s data, including cash takings, cash recycling, banking information and armored transport supplier information in order to build up a profile of the client’s true requirements.

CMSPI’s analysis identified opportunities to improve the efficiency within the client’s operational processes, contractual arrangements and pricing.

CMSPI Solution

Using its proprietary Pinpoint:Cash software suite, CMSPI assessed the end-to-end cash procedures, both internal and external, on a site-by-site basis. This exercise enabled CMSPI to review all the dynamics that influenced the sites’ cash supply chain, including; cash takings, checks cashed, safe limits, people/resource, cash office capacity, cash takings, location, accessibility, risk, interest rates, min/max collections, non-collection days, settlement cycles and indemnity charging structures among others. Once CMSPI had a clear view of the potential areas for improvement within the client’s cash supply chain, our consultants presented a suite of options based to balance cost, cash flow and risk.

CMSPI’s granular analysis provided the client with an unbundled view of its true cost of cash on an individual site by site basis. Based on the data that Pinpoint:Cash provided, CMSPI consultants were then able to interpret the results and confidentially benchmark the information provided against its wider client base. CMSPI’s consultants then made recommendations as to the best route to proceed to achieve significant cost reductions and improved internal and external operational processes.

The project delivered a 30% reduction in armored transport costs, with potential for further reductions as the client and CMSPI continue to work together to optimize arrangements over the contract term. Additionally, the client has benefited from an average cash balance increase of $5 million, with potential for further improvement through best-practice reconciliation arrangements and utilization of an intelligent CMSPI cash ordering tool.

Quick facts about the project

30

Percentage reduction in costs associated with armored cash collections

5

Average cash balance increase of $5 million

0

No additional risk following rescheduling exercise

I would like to thank CMSPI for their work across both our cash and cards supply chains that have resulted in significant 6 figure annual savings to date. CMSPI has very professional and highly responsive staff that is a pleasure to work with. I would recommend other retailers to engage with the CMSPI team to review their payments arrangements as the results of CMSPI's work exceeded our expectations across all areas.

Read what our clients have to say