"Redbridge helped us optimize our cash management fees and generate significant value for our treasury function. The project revitalized our key banking relationships"
Assignment overview
- Assess and optimize the cash management fees charged by six global banks
- Scope: Europe and North America (across 24 countries and 10 currencies)
Objectives
- Improve visibility on volumes and fees for each bank
- Perform a sanity check on charges over the past 12 months
- Review current market practices and innovative service offerings
- Design and implement a fee optimization strategy
- Maintain strong relationships with banks
Results
- Conducted bilateral negotiations with the banks leading to a recurring annual savings of 17%
- Added seven figure overall value to Unilever’s bottom line
- Provided potential ways to optimize unchecked service items such as payment cards and earnings credit rate (ECR)
- Obtained competitive offerings from incumbent banks, even on new and innovative services
- Ensured better visibility and monitoring of fees going forward by implementing agreed-upon pricing grids
Methodology
- Full assessment and mapping of banking services, including volumes and pricing, coupled with a thorough review of the fees charged over the last 12 months
- Detailed benchmark of all payments and services (including payment cards and ECR)
- Support provided to Unilever’s treasury team during the decision-making process and negotiations with banks
Value added by Redbridge
- Helped collect all the data from the banks
- Conducted 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
- Supported Unilever during extensive negotiations with banks to safeguard long-term relationships
- Provided full support to Unilever until new pricing schemes were implemented