Circumstances change over time that determine your goals, and lost opportunities can emerge as a result. The negative impact and expense from lost opportunities are hard to track, yet they are all too real. For example, having too little cash can mean you miss out on the opportunity to minimize armored car deliveries, thus saving on transportation costs. On the contrary, having excess cash equates to large amounts of money sitting idle when it could have been reinvested to create a profit.
How do you avoid opportunity lost when it comes to cash in your financial institution?
“The key is to have the exact amount of cash when and where you need it, and avoid having too much where you don't,” says Kelly MacConnell, Vice President of Business Development at logicpath. “Balancing both is the key to success.”
However, it is not as simple as it sounds. Overall, Branch Managers still spend a significant amount of time calculating actual cash usage at each cash point manually through spreadsheets and often times end up with errors. We suggest having an effective cash management plan in place that includes the use of cash forecasting software. A cash forecasting software such as logicpath’s C3 Financial calculates how much cash you actually need at each cash point based on historical data combined with real-time cash usage. This forecasting methodology ensures you do not encounter these kinds of missed opportunities in the future and also enables you to successfully balance your cash inventory precisely with minimal effort from your team.
To learn more about where to look for waste and areas of improvement in the cash supply chain, click the link the link below to download our new e-book, “The 7 Areas of Waste That are Killing Your Bank’s Efficiency.”