Logicpath Insights

One of the best practices for having optimal inventory levels is to regularly update your inventory expectations frequently. This means adjusting your targets and limits appropriately by reviewing your actual cash demand and usage. Often, cash inventory and supply chain processes and expectations go years without being updated. However, to truly optimize your processes, these expectations should be updated on a monthly basis, and even more often if there are significant changes to your cash supply chain or inventory like during the COVID-19 pandemic when cash demand was higher than normal.

Financial institutions use limits to manage their cash supply chain and inventory, however there are “do’s” and “don’ts” of setting limits that can drastically affect your success. Today, we will discuss best practices your bank or credit union can use to set limits appropriately.

Another one of the many consequences of the COVID-19 pandemic was the partial closure of the economy. Due to this partial closure, a nationwide coin shortage has developed because consumers are unable to spend their coins at local businesses that were temporarily closed or cut back on their operations. In addition, the U.S. Mint’s coin production also decreased at the beginning of the COVID-19 pandemic to keep employees safe. Additionally, we’ve seen an increase in online purchasing which yet again, leave coins out of the mix. All of these factors mean there are less coins now in circulation.

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.

This week, our smart tip focuses on awareness of trends in the demand for cash. While we have all witnessed the unexpected over the last few months and recognize the importance of being prepared for the unknown, it is even more critical to be aware of ongoing and predictable trends that impact your cash flow. Here are five tips to help your financial institution optimize their cash supply chain and inventory.

A good inventory system is important to any business' growth. For most industries, inventory ties up cash figuratively in products sitting on a shelf or in a warehouse. But for financial institutions, branch, ATM, vault and device cash is a financial institution’s inventory.

Inventory management isn’t just about food and sports equipment though, it’s also about cash. Logicpath has worked with thousands of branches and ATMs to help banks and credit unions create new inventory management practices that are helping them through the uncertainty of the COVID-19 pandemic.

A good inventory system is important to a business’ growth. A financial institution's inventory is the cash tied up in branch, ATM, vault and devices. Like any other business, not enough or too much inventory can be costly to the business and inhibit growth.

Research estimates that more than half of banks and credit unions have adopted a universal banker model in their branches as a part of their overall branch transformation strategy.

When people think about branch transformation, they think of the addition of new technology, devices, but often fail to think about software. In this blog, I will discuss three reasons institutions should consider a branch cash management software in their overall branch transformation strategy.