Overview
- Bank Relationship Management Insight, Cash Management North America
Objectives
- Audit the current cash management organization, services in place, and bank charges
- Strengthen and maintain the existing bank relationships
- Negotiate an optimized fee structure without undergoing a structured RFP process
Results
- Greater than 50% fee reduction
- Standardized pricing across legal entities
- Implementation of ECR in Canada and increased yield in the US
- Reporting synchronized from multiple file types to a single file type into the TMS
- $10,000 in bank billing errors recovered
Methodology
- Extensive interview and discovery process of legacy bank relationships and cash management processes for each division and treasury team
- Communication of audit findings into a formal report provided to the bank for discussion and action
- New conditions and service changes monitored for 12 months to confirm accuracy of newly agreed pricing and yield conditions
Value Added by Redbridge
- Substantial savings through the combination of service changes, ECR, and reduced pricing
- Information reporting differences between divisions prompted internal efforts to leverage existing tools and reduce cost of daily reporting to TMS
- Volume inquiries led to resolution of reporting issues for Canadian, Singapore, and India bank accounts
- Account and billing structure rationalization led to closure of dormant accounts, improved cash pooling, and simplified billing