Originally published by Quantzig: Enhancing cash distribution with forecasts and levels for a retail bank

Introduction:

In an era of heightened competition and evolving customer expectations, retail banks face the dual challenge of enhancing service delivery while minimizing costs. This case study delves into how Quantzig partnered with a major Australian bank to optimize cash distribution across its branch and ATM networks, driving efficiency and profitability.

Client Overview:

The client, a leading Australian bank, sought to improve operational efficiency and service quality while reducing costs across its extensive network of branches and ATMs. Faced with the imperative to boost productivity and stay ahead of the curve, they turned to Quantzig for innovative solutions.

Business Challenge:

The client grappled with the perennial challenge of optimizing cash distribution to meet fluctuating demand levels at branches and ATMs. Balancing the need for adequate cash reserves with the imperative to minimize excess holdings posed a significant operational hurdle.

Quantzig's Solution:

Quantzig devised a comprehensive supply chain analytics solution tailored to the client's specific needs, addressing key pain points and unlocking hidden opportunities for efficiency gains. The solution comprised a three-point approach aimed at vault management, ATM and branch cash handling, and forecasting tools for cash demand.

Vault Management: Leveraging sophisticated forecasting techniques and time series analysis, Quantzig empowered the client to proactively manage cash holdings at vaults, optimizing inventory levels and minimizing shortages.

ATM and Branch Cash Handling: By adopting a proactive approach akin to vault management, Quantzig enabled the client to streamline cash management processes at ATMs and branches, ensuring optimal cash availability while minimizing excess holdings.

Forecasting Tools: Through advanced machine learning models, Quantzig provided the client with accurate forecasts of cash demand, enabling proactive planning and allocation of resources.

Impact Analysis:

Quantzig's supply chain analytics solution yielded tangible results for the client, including the introduction of a just-in-time (JIT) variable scheduling service for ATM servicing. This initiative led to significant cost savings while maximizing cash availability and profitability. By optimizing cash management processes and implementing straightforward solutions, the client achieved dynamic cash limits based on usage trends, minimized excess inventory, and enhanced overall operational efficiency.

Key Outcomes:

- Enhanced visibility into cash flows

- Analysis of daily, weekly, and monthly demand patterns

- Streamlined cash ordering processes

- Optimization of cash inventory management

Broad Perspective on Supply Chain Analytics in Retail Banking:

The successful implementation of Quantzig's supply chain analytics solution underscores the transformative potential of data-driven insights in optimizing cash distribution within retail banking networks. By integrating forecasting and inventory optimization models, banks can minimize idle cash levels, enhance customer service, and drive profitability.

Key Takeaways:

Quantzig's supply chain analytics solutions offer retail banks a strategic advantage by providing:

- Enhanced visibility and control over cash flows

- Proactive management of demand fluctuations

- Optimization of cash inventory management processes

- Streamlined cash ordering and distribution workflows

Conclusion:

In a rapidly evolving retail banking landscape, optimizing cash distribution is paramount to ensuring operational efficiency and maintaining customer satisfaction. Through strategic collaboration with Quantzig, the client was able to revolutionize its cash management practices, driving cost savings, and enhancing service delivery across its branch and ATM networks. As retail banks continue to navigate the challenges of an increasingly digital and competitive market, data-driven insights will remain indispensable in unlocking new avenues for growth and innovation.

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