Louis Dreyfus Company

LDC Optimizes U.S. Cash Management and Cuts Bank Fees by 19% With Redbridge

Louis Dreyfus Company is a global merchant and processor of agricultural commodities with substantial treasury activity across the United States. As transaction volumes and service usage evolved across four core banking partners, LDC initiated a structured diagnostic of its U.S. cash management services and related bank fees. In partnership with Redbridge, the company recalibrated pricing, strengthened fee visibility, and secured a 19% reduction in cash management costs while reinforcing key banking relationships.

Challenge

LDC’s U.S. treasury operations relied on four primary cash management banks supporting electronic disbursements, ACH services, domestic wires, reporting tools, and file-based transmissions. Over time, service utilization had expanded in line with operational demands, yet pricing structures and fee visibility had not been comprehensively revisited.

Treasury leadership sought refined transparency into volumes and associated bank charges across institutions. The company required a consolidated and disciplined view of its cost base, alongside a structured assessment of whether current pricing reflected prevailing market practice. At the same time, LDC needed to preserve the structurally symbiotic relationships that underpin a global commodity trading model.

Solution

LDC launched a structured diagnostic initiative and partnered with Redbridge to conduct a Full Mapping and Audit of Banking Services, consolidating transaction volumes, service utilization, and pricing schedules across its four principal U.S. banks. Redbridge worked closely with treasury and banking counterparts to collect and reconcile data until a complete and exhaustive perimeter of services and fees had been established. This diagnostic created a clear baseline of cash management costs by institution and service category.

Building on this foundation, the engagement introduced a Detailed Market Benchmark Across Payment Instruments and Services, covering domestic wires, ACH transactions, and file-based transmission capabilities. Redbridge calibrated achievable pricing levels aligned with relevant market practice and the company’s transaction profile. This benchmarking framework provided LDC with objective reference points to assess pricing competitiveness across incumbent banks.

Armed with structured data and market comparables, LDC engaged its banking partners in disciplined pricing discussions. Redbridge provided analytical support and negotiation coaching, helping treasury leadership balance competitive repricing objectives with long-term relationship management. The engagement emphasized maintaining strategic banking stability while securing optimized conditions across service categories.

To institutionalize pricing discipline beyond the renegotiation phase, LDC implemented a Recurring Reporting Mechanism on Volumes and Fees with each bank. Clearly defined price catalogues were formalized, enabling systematic monitoring of transaction volumes and associated charges going forward.

Results

19% Reduction in U.S. Bank Fees

The structured diagnostic and negotiation process resulted in a 19% reduction in bank fees associated with U.S. cash management services. Savings were achieved across multiple service categories, reflecting broad repricing rather than isolated fee adjustments.

Competitive Conditions Secured Across Electronic Disbursement Services

LDC obtained competitive pricing on key electronic payment instruments, particularly domestic wires, ACH services, and file-based transmission channels. These conditions aligned service pricing more closely with market standards while preserving continuity with incumbent providers.

Reinforced and Updated Service Offering from Incumbent Banks

The benchmarking process prompted incumbent banks to revisit and refine their service propositions. As pricing discussions progressed, banks updated elements of their offering to remain competitive within LDC’s framework. This strengthened the overall competitiveness of the existing banking network without structural disruption.

Improved Fee Visibility and Ongoing Monitoring Across Treasury Operations

The implementation of recurring reporting and clearly agreed price catalogues enhanced fee transparency across all four institutions. Treasury gained improved visibility into volumes and associated charges, reducing the risk of future pricing drift and enabling disciplined ongoing oversight.

Strengthened Governance Across LDC’s U.S. Cash Management Framework

Beyond immediate cost reduction, the engagement reinforced a more structured approach to cash management governance. LDC now operates with documented pricing baselines, systematic monitoring, and a clearer understanding of market positioning. This strengthened the company’s ability to manage banking relationships strategically while maintaining the stability essential to its trading operations.