Louis Dreyfus Company

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

Mission

• Diagnostic and optimization of cash management services utilized and the related bank fees
• Targeting 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