"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.