1. Driving more profitability from the same business
ATM Cash Management:
Driving more profitability from the same business
Presented by:
Mike Plante, Head of Business Development
Daniel Cramer, Senior Analyst

2. 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

3. Introduction

4. 1991 20,000 28 Countries About CMS $56BN
CMS was founded
20,000
Sites managed including
FX bureaux, ATMs, vaults, banks & shops.
Industries we work with
$56BN
Cash ordered/sold by our systems every year
ATMs
Foreign Currency
Financial Institutions
Vaults
Skilled
team of consultants & mathematicians
CMS manage sites across
28 Countries

5. The Assumption: The cash supply chain is a series of fixed costs
Introduction
Interest Rates
Operation Choke Point
Supply Chain Constraints
EMV
Cash Management Savings
Phone Card Revenue
DCC Revenue
With the cost of EMV and the potential for rises in interest rates, revenue streams such as DCC and phone cards won’t make up for the expense.
You have to look to your cost base: Identify costs that ATM deployers cannot alter.
Assumptions are made that cash management is a fixed cost; more intelligent cash management will adjust it to a variable cost.
Aim: Maximum availability at lowest possible cost
The Assumption: The cash supply chain is a series of fixed costs
Reality: Intelligent cash management allows you to turn your supply chain into a variable cost
Cash management will be the single biggest impact you can have on your business in 2015.

6. The Assumption: The cash supply chain is a series of fixed costs
ATM Fixed Costs
Processing
Fees
Staff
Equipment & Software
Maintenance
Comms
Rent
Insurance
Intelligent cash management allows you to turn your cash supply chain into a variable cost.
Cash
Management?
Utilities
Security
With the cost of EMV and the potential for rises in interest rates, revenue streams such as DCC and phone cards won’t make up for the expense.
You have to look to your cost base: Identify costs that ATM deployers cannot alter.
Assumptions are made that cash management is a fixed cost; more intelligent cash management will adjust it to a variable cost.
Aim: Maximum availability at lowest possible cost
The Assumption: The cash supply chain is a series of fixed costs
Reality: Intelligent cash management allows you to turn your supply chain into a variable cost

7. Gain a competitive advantage
Industry Benchmarking
Comparing costs against your peers isn’t the right way to benchmark your business…
Gain a competitive advantage

8. Cash Cycle Management

9. Cash Cycle Management
Forecasting
Traditional approach

10. Cash Cycle Management Forecasting Bank Cash Center Replenishment
ATM
Residual

11. Forecasting Forecasting Bank Cash Center Cash Center Rebanking targets
Residual costs
Replenishment
Cassette management
Residual
Lead time analysis
ATM

12. Global withdrawal limits
Bank
Forecasting
Bank
Cash Center
Cash Center
Global withdrawal limits
Replenishment
Lead times
Residual
Cash costs
ATM

13. Cash Center Depot-by-depot performance levels Forecasting Bank
Service level agreements
Cash Center
Cash Center
Emergency cash replenishments policy
Depot-by-depot performance levels
Replenishment
Lead times
Residual
Recycling
ATM

14. Replenishment Forecasting Bank Performance management Cash Center
Single ATM Schedule Comparison
Schedule Options
Simulations to optimize schedules
Replenishment
Forecasting
Bank
Performance
management
Cash Center
Cash Center
Prices per visit
Route management
Traditionally replenishment schedules are based on a 7 day cycle. What you really want is a schedule with greater flexibility.
How can you forecast effectively when you don’t have a schedule? Proper schedule is vital to effective cash management
Replenishment
Simulations to optimize schedules
Residual
Time windows
ATM

15. Proximity to alternatives
ATM
Type of ATM/site
Capacity
Forecasting
Bank
Availability levels
Cash Center
Cash Center
Volatility of demand
Proximity to alternatives
Replenishment
Risk policy
Residual
Denomination profile
ATM

16. Residual Forecasting Bank Cash Center Cash Center Replenishment
Example Residuals Reduction
Residual analysis
Residual
Forecasting
Bank
Cash Center
Cash Center
Residual analysis
ATM balance
Replenishment
Price per visit
Residual
Collection profiles
ATM

17. Cassette management/auditing
Cash Center
Forecasting
Bank
Cash Center
Cash Center
Reconciliation
Cassette management/auditing
Replenishment
Cost of residuals
Residual
Lead time analysis
ATM

18. Areas of Control Forecasting Reduce your overall cost of cash
Bank
Cash Center
Replenishment
ATM
Residual
Forecasting
Reduce your overall cost of cash
Improve operational processes and remove unnecessary administration work
Maximise cash availability
Reduce cash balances
Improve supplier service levels
Alleviate the daily demands & pressures placed upon internal staff

19. Case Study: Bank

20. Case Study: Bank Mid-sized US bank
Fully outsourced armored transport (multiple carriers)
Internal cash management solution in place
The Business
High transport costs - Current solution does not seek out cost savings and efficiencies.
The
Challenges

21. Case Study: Bank Scheduling Improvements Rank Simulate Armored
Simulate and model
scheduling options
Simulate
Work with armored carriers to implement most efficient option
Armored
Carriers
Cross-reference scheduling options with demand
Demand
Rank options by cost
Rank

22. Scheduling in line with demand
Case Study: Bank
Intelligent Scheduling
Scheduling in line with demand
Reduce bandwidth issues
Improve delivery success rates

23. Case Study: Bank Outcomes Increased profitability of operation
Balance reductions of 30.5%
Total supply chain cost savings of 27.8%
Increased profitability of operation

24. Case Study: Bank Monitoring
Intelligent scheduling is a continuous process
Evolving simulations for changing demand profiles and constraints
Armored transport monitoring and reaction. Depot and route service level monitoring

25. Independent ATM Deployer
Case Study:
Independent ATM Deployer

26. Case Study: IAD 100 ATMs Internal Armored Transport
Limited Cash Supply
Cost of Cash: 10%
The Business
Wanted to reduce costs, grow network without extending line of credit and increasing staff levels
The
Challenges

27. Case Study: IAD The Before and After of Supply Chain Optimization
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
The Before and After of Supply Chain Optimization

28. Case Study: IAD Forecasting Before After Impact
Forecasting the day before
Before
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
Daily reforecasting to monitor demand
After
Balance Reductions
Cost Savings: All Supply Chain Costs
Impact

29. Case Study: IAD Bank Before After Impact
Going multiple times a week wasting time
and money
Before
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
Designated days with optimized withdrawal
amounts
After
Efficiency Increases
Cost Savings: Note Supply
Impact

30. Case Study: IAD Cash Center Before After Impact
Excessive amounts withdrawn and lack of
robust processes
Before
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
Excess reduced; Process implemented
After
Balance Reductions | Time Savings
Cost Savings: All Supply Chain Costs
Impact

31. Case Study: IAD Replenishment Before After Impact
No clear indication of when the next
replenishment would take place
Before
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
Replenishment on optimum route and with
more advanced notice
After
Efficiency Increases
Cost Savings: Armored Transport
Impact

32. Case Study: IAD ATM Before After Impact
Excess cash in ATM – High average balance
Before
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
ATM average balance reduced
After
Balance Reductions
Cost Savings: Interest & Insurance
Impact

33. Case Study: IAD Residual Before After Impact Excessive residuals
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
Optimized residuals for each ATM
After
Balance Reductions
Cost Savings: Banking & Interest
Impact

34. Case Study: IAD Cash Center Before After Impact
Lack of accurate reconciliation process
Before
Forecasting
Bank
Cash Center
Replenishment
ATM
Residual
Robust and transparent reconciliation process
After
Time Savings
Efficiency Increases
Impact

35. Case Study: IAD 36.0% 35.2% 34.0% Balances Costs Efficiency
Balance reductions of
36.0%
Costs
Cost savings of
35.2%
Efficiency
Load reductions of
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

36. Optimization = A Platform for Growth

37. Platform for Growth Cash Resource
An efficient cash cycle will enable network growth within existing constraints
Cash Resource
Additional capital for 49 ATMs
Sample data requirements
ATM details (location, name, security limits, customer account)
Daily ATM withdrawals by ATM for 12 months
Replenishment amount, by date, for the past 12 months
Current scheduled replenishment days
Lead time from ordering to replenishment
Daily cash balances by ATM for 12 months
Costs:
Cost per ATM replenishment (scheduled and emergency fill)
Cost for note supply
Cost of rebanking
Interest costs
Desirable but not essential:
Global level cash in network
Monthly armored transport budget
Monthly banking budget

38. Armored Transport Constraint
Platform for Growth
An efficient cash cycle will enable network growth within existing constraints
Armored Transport Constraint
Optimized replenishment schedule allowing bandwidth for 45 ATMs
Sample data requirements
ATM details (location, name, security limits, customer account)
Daily ATM withdrawals by ATM for 12 months
Replenishment amount, by date, for the past 12 months
Current scheduled replenishment days
Lead time from ordering to replenishment
Daily cash balances by ATM for 12 months
Costs:
Cost per ATM replenishment (scheduled and emergency fill)
Cost for note supply
Cost of rebanking
Interest costs
Desirable but not essential:
Global level cash in network
Monthly armored transport budget
Monthly banking budget

39. Interest Rates
Stress-testing for the impact of interest rate rises should be a priority

40. Interest Rates
Stress-testing for the impact of interest rate rises should be a priority

41. Interest Rates
Stress-testing for the impact of interest rate rises should be a priority
Potential savings of $250,000

42. Key Points to Take Away

43. 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
Sample data requirements
ATM details (location, name, security limits, customer account)
Daily ATM withdrawals by ATM for 12 months
Replenishment amount, by date, for the past 12 months
Current scheduled replenishment days
Lead time from ordering to replenishment
Daily cash balances by ATM for 12 months
Costs:
Cost per ATM replenishment (scheduled and emergency fill)
Cost for note supply
Cost of rebanking
Interest costs
Desirable but not essential:
Global level cash in network
Monthly armored transport budget
Monthly banking budget
Cash management should be one of the key driver s for profitability!

44. please contact Mike Plante, Head of Business Development:
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: UK
t. +44 (0) US t