"Redbridge helped us to revisit, understand and optimize our cash management services and bank fees but also to get up to speed with the latest offerings and revitalize certain banking relationships."
Engagement overview
- Mission: Diagnostic and optimization of cash management services utilized and the related bank fees.
- Scope: Louis Dreyfus Company’s four main US cash management banks.
Objectives
- Refine visibility on volumes and banking fees per bank;
- Revisit current market practices across banking partners and types of services
- Design and implement the right optimization strategy;
- Preserve the structurally symbiotic relationship of a commodity trader with its banks;
Results
- Reduction of bank fees associated to cash management services by 19%,
- Reinforced a competitive and updated service offering from incumbent banks;
- Obtained competitive conditions on electronic disbursements, particularly domestic wires, ACH services, and file-based transmissions.
- 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
- Assistance to collect all the data with banks until complete exhaustiveness;
- Rigorous diagnosis process to map and reconstitute cash management costs per bank;
- Strong knowledge of market prices and banks’ best practices and capabilities across services and countries;
- Provided coaching to support balanced and strategic bank negotiations, ensuring long-term relationship management while securing optimal conditions across service types
- Full client support and analysis until documentation signing.