"The Redbridge teams have been instrumental in helping us identify the optimal TMS set-up. Additionally their cash management expertise has helped us achieve significant rationalisation and fee savings. "
Engagement overview
- Perform a 360-degree diagnostic of treasury activities to co-build the roadmap for the next 3 to 5 years
- Challenge the TMS setup, to ensure that the solution in place will be able to support the Treasury department in its future needs and challenges
- Assess and optimise the cash management services and fees charged by 5 global banks
Objectives
- Identify initiatives that will enable the Treasury department to go “from good to great” and organise their implementation timeline
- Bring expertise to assess the current TMS capabilities and evaluate other TMS options for providing a higher level of service
- Enhance visibility on volumes and fees for each bank and review current market practices and explore innovative service offerings
- Design and implement a fee optimisation strategy while maintaining strong relationships with banks
Results
- Determined short to long-term initiatives supported by a global return on investment calculation
- Conducted a comparative analysis of TMS suppliers, securing subsequent negotiations and implementation plan
- Engaged in bilateral negotiations, resulting in a high six-figure total savings number for the duration of contracts
- Obtained competitive offerings from incumbent banks, including on new and innovative services to support Alcon’s 3-to-5-year roadmap
Methodology
- Thematic workshops covering each angle of the Treasury department’s duties, mobilising peers’ practices and leveraging the existing setup
- Calculation of a Return on Investment by scenario to present an exhaustive view of the gains and costs that could be expected
- A challenging RFP process allowing a granular assessment of TMS’ capabilities
- Full assessment and mapping of banking services, including volumes and pricing, coupled with a thorough review of the fees charged over the last 6 months
- Support provided to Alcon’s treasury team during the decision-making process and negotiations with banks
Value added by Redbridge
- Comprehensive understanding of treasury activities and ability to contextualise them in comparison to similar companies
- Knowledge of the upcoming banking practices and regulations and the newest innovations to develop a sustainable roadmap
- Maintained a neutral position regarding TMS Solutions, providing a fair and competitive assessment
- Supported Alcon in collecting all data from banks in scope and performed a rigorous assessment to map and estimate cash management costs by bank
- Provided in-depth knowledge of market prices and banking best practices across services and countries
- Continued to support Alcon during negotiations, resulting in outcomes aligned with initial estimates, and preserving long-term relationships