"Redbridge has been instrumental in making the cash management banking fees we pay on a global basis more transparent and, in North America, optimizing our fee schedule and costs while preserving our strong relationship with our banks. "
Engagement overview
- Use HawkeyeBSB to analyze and monitor cash management fees covering four global banks and 450 bank accounts, with a total of 64 bank-country combinations
- Assess and optimize the cash management services provided by, and fees charged by, the group’s primary banking partner for the US and Canada
- Harmonize pricing across all accounts
Objectives
- Make the banking services used by the group and the related costs more transparent and improve head office’s understanding of them. Also monitor whether the banks have been applying the correct fees
- Review current cash management market practices and any innovative service offerings. Use our expertise to determine whether the current services and fees are competitive within the current banking environment
- Design and implement a fee optimization strategy while maintaining a strong relationship with the group’s primary banking partner
Results
- Detailed insight into the overall charges paid to each bank at the group level and identification of billing discrepancies, which were then corrected
- In North America, bilateral negotiation with the group’s primary banking partner led to significant savings over the duration of the contract. Harmonized pricing, ensuring the group had a clear view of its future banking fees
- Primary banking partner agreed to a five-year contract, cementing their relationship for the foreseeable future
Methodology
- Automatic integration of bank files in our HawkeyeBSB tool
- The tool reconciles the bank codes and the tariff grids whatever the bank account, the bank or the country in question. HawkeyeBSB automatically points out differences between expected and invoiced charges so that any undue charges can be recovered
- In North America, we fully assessed and mapped the group’s banking services, including volumes and pricing, coupled with a thorough review of the fees charged over the audit period
- Provided support to Kuehne+Nagel’s treasury team during the decision-making process and throughout negotiations with the primary banking partner.
Value added by Redbridge
- Provided a transparent, easy-to-use and user-friendly tool. Ability to make comparisons by bank, country, subsidiary and product
- Expertise in mapping the group’s services with industry standards.
- In North America, helped Kuehne+Nagel collect data from its primary banking partner and mapped and estimated cash management costs. Provided in-depth knowledge of market prices and banking best practices across services.
- Provided ongoing support to Kuehne+Nagel during negotiations, the outcome of which was in line with initial estimates, while preserving long-standing relationships.