If we’ve learned anything over the last few months, it is that the least expected can easily become reality and everything can change in an instant. In our previous post we talked a lot about the trends that should be evaluated when reviewing your cash supply chain and the processes surrounding your branch, ATM and vault cash inventory, but as we adjust to a “new normal” we are beginning to see that the previous trends may not always apply.
There is no way you can be 100 percent prepared, but we want to provide you with three tips that will help you prepare for the unexpected:
1. Be able to respond to new daily cash usage information and an uptick in demand
Make sure you have an effective way to track daily cash usage down to the denomination and be able to respond accordingly. If you are consistently ordering cash based on historic numbers and processes, you’ll have a hard time being responsive to any increase or decrease in your cash demand. The industry best practice is to use a forecasting software that updates daily to provide you with accurate usage numbers and proper guidance for your cash orders.
2. Have a process in place to switch to centralized ordering as necessary
At logicpath, we find that 50 percent of financial institutions order cash centrally, meaning one person manages all cash orders for all the branches and ATMs/ITMs, and the other 50 percent order their cash through a decentralized process, with each individual branch responsible for submitting their own cash orders. With staff absent and branches temporarily closing their doors during the COVID-19 pandemic and in the foreseeable future, it is critical that financial institutions have the ability to easily switch to a centralized ordering process to keep the cash supply chain running efficiently while still meeting the sudden fluctuations in customer demand.
3. Establish a way to quickly communicate with critical suppliers and order additional shipments of cash if necessary
One of the big challenges banks and credit unions experienced abruptly at the beginning of the COVID-19 pandemic was how to efficiently stock their in-lobby ATMs and ITMs that were normally stocked by the staff of the branch. Due to lobby closings, financial institutions had to respond by coordinating quickly with their armored car carriers and have them abruptly service the in-lobby ATMs/ITMs. Having a vault, ATM/ITM and device cash forecasting and inventory management software provides the benefit of integration with many of these critical suppliers, making communications easier and more efficient in the case of an emergency.
If you’d like more helpful inventory management tips, be sure to check out our new two-part webinar series, Cash Smarts, to learn more about how to implement a successful cash inventory system to reduce your excess cash in the branch without the fear of ever running out.