To wrap up our Smart Tips series we want to talk about the importance of implementing a review process for your cash supply chain and inventory management practices. A good review process is vital to your organization’s success and needs to be reviewed thoroughly before implementation begins. Below are some questions to ask your cash management team when thinking about your review process:
- Would a centralized or decentralized ordering process work best for the bank or credit union?
- Should each branch be ordering their own cash to the money supplier?
- Should an internal department approve cash orders?
- Should someone centrally place all orders on behalf of all branches and ATMs/ITMs?
Remember, it is important to schedule monthly meetings with all departments involved in the cash supply chain (risk, finance, retail and operations). All of these departments need to be aware of how each are involved in the cash supply chain to better optimize efficiency and processes. In these monthly meetings, make sure you evaluate and adjust the cash ordering process when needed. For example, we are currently seeing a lot of financial institutions rotate between centralized and decentralized ordering processes because banks and credit unions are having to temporarily close lobbies for sanitation and rely on armored car carriers to service ATMs. During these times where the branch is closed for cleaning, financial institutions are opting into a centralized ordering process and will go back to decentralized when they reopen.
To learn about more Smart Tips for managing your cash supply chain and inventory make sure to download our webinar, “Cash Smarts – Part 2.” Click below to download the webinar and continue to check out more Smart Tips on our blog.
