Logicpath Insights

Banks and credit unions have some of the most intricate supply chain systems in the world. The main driver for this is the increased use of sophisticated technology such as ATMs/ITMs, Video Tellers, Recyclers and Kiosks. Supply chain management (SCM), or inventory management is the process of sourcing materials that a business needs to create a product or service and deliver it to its customers.

Cloud-based software has become more cost-effective and has even helped remove monotonous day-to-day tasks and responsibilities from your team members as it applies to data collection and aggregation. Additionally, new technology has nearly eliminated the need for data scientist roles as the new technology empowers everyone to be able to understand, analyze and act on the data they are given. Now the tough question, how do you choose the right technology and cloud software to adopt? In this blog we will discuss five criteria you should look for in a cloud software.

In the last few blog posts we have discussed how cloud software has given community banks and credit unions increased accessibility to data. However, there are steps financial institutions need to take to ensure they are getting the highest quality of data out of their software through efficient processes.

Have you ever bought a new piece of helpful technology that sits unused despite there being a good reason to have purchased it? We’ve all been there. The same concept also applies to getting your team members to adopt a data informed mindset to make every data-driven initiative a success, and while you’re exploring cloud software applications to help manage data, provide reporting, cash forecasting, and more—it’s important to begin by thinking about the data itself. There are already well-defined strategies in place that you can use to ensure the process toward a data informed mindset and an operational structure are as efficient and easy to follow as possible.

As we discussed in our previous blog post, banks and credit unions now have access to more data than ever which can be used to make strategic business decisions. However, it is not uncommon for financial institutions to miss the opportunity to take advantage of their data due to a lack of the right mindset.

It is no secret that cloud software has been a game changer for many organizations across a multitude of industries including financial services. Today, cloud software has become affordable and more accessible to organizations of any size to leverage, but why is this important? Banks and credit unions are accumulating data more quickly than ever before due to the rapid advancement in technology. Financial institutions are now more empowered with data because of the easy access and usability of Excel and other cloud software applications.

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:

In this week’s blog post we want to discuss how to effectively review your target or limit performance to make sure your limits are set to optimize your cash inventory and ordering process.

One of the costliest areas in cash supply chain management for a bank or credit union is the expense associated with cash deposit and deliveries. In this blog post, we will be reccomending best practices that financial institutions should use to define their delivery schedules appropriately to optimize the cash supply chain and reduce deposit, delivery and holding costs.

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.