Avery Dennison

Avery Dennison Optimizes Cash Management and Bank Fees

Mission

• 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

Redbridge’ s Added Value

• 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