"Redbridge has helped us realize savings on our key banking partnerships while also enhancing service efficiency to optimize our cash management process."
Engagement overview
- Mission – assess and optimize the fees charged by several global relationship cash management banks
- Scope: Europe, North America and Latin America (across 28 countries and 15 currencies)
Objectives
- Improve and refine visibility on volumes and banking fees per bank
- Review current market practices and innovative service offerings
- Design and implement the right optimization strategy
- Maintain strong relationships with banks while achieving savings
Results
- Conducted bilateral negotiations with the banks leading to recurring annual savings of 13% on the negotiated scope, through interaction with major banks in 14 countries
- Additional improvements achieved through an in-depth review of Avery Dennison’s services (dormant accounts, Lockboxes, unused reporting, etc.)
- Better visibility and monitoring of fees going forward on clearly agreed price catalogues
Methodology
- Full mapping and audit of existing perimeter banking services including volumes and pricing
- Detailed benchmark for all means of payments and services, aiming achievable levels in line with relevant market practice
- Accompany treasury team in their reflection and analysis during bank discussions and negotiations
- Implementation with each bank of recurrent reporting on volumes managed and fees charged
Value added by Redbridge
- Collect all the data from banks until complete exhaustiveness on agreed scope
- Rigorous diagnosis process to map and reconstitute cash management costs per bank
- In-depth knowledge of market prices and banking best practices across services and countries
- Supported Avery Dennison for balanced and considerate negotiations with banks to safeguard long-term relationships but also benefit from best conditions for each service type
- Full client support until documentation signing