"Partnering with Redbridge allowed us to optimize our banking services and align our terms with competitive market standards. Their strategic negotiation and data-driven approach, specialist experience and tools delivered measurable results and lasting value for our cash management services."
Challenge
Couche-Tard, a rapidly growing leader in the convenience store industry, needed a detailed assessment of their current banking conditions to uncover any underutilized services or inefficiencies and ensure that their cash management pricing and earnings credit rate (ECR) were aligned with market standards. A series of significant recent acquisitions combined with organic growth raised the importance of creating visibility & optimizing these cash management areas. The complexity of banking services across their businesses & banking partners required a partner who had the data, experience and expertise to accurately benchmark & analyze their current cash management set up.
Solution
Couche-Tard partnered with Redbridge to conduct an assessment of their cash management fees by benchmarking them against current market practices. Redbridge also reviewed the company’s cash management services to identify any underutilized areas or areas that could be optimized. Further, Redbridge supported Couche-Tard in renegotiating terms with both existing and potential new banks, as well as supporting the structured assessment and comparison of bank proposals.
Results
The collaboration with Redbridge led to significant treasury enhancements for Couche-Tard. The company achieved a substantial reduction in cash management costs, which was particularly positive given the challenge associated with renegotiating depository services. Additionally, Couche-Tard secured improvements in their ECR of several percentage points. Through strategic bank fee & yield negotiations, Couche-Tard successfully cut their out-of-pocket bank fees by half, streamlined their financial operations & enhanced overall efficiency.