"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.