Cash cycle standardization is efficient and brings environmental gains
Sustainability and efficiency are the concern of everyone involved in the cash cycle. Standardizing transport units can have a big impact in these areas as it has a positive impact on everything from automation to storage costs. Historically, many factors mitigated against standardization but now the benefits of standardization are clear beyond doubt.
G+D’s recent whitepaper ‘Cash cycle optimization and standardization’ explored the challenges and options that organizations encounter when applying standardization to banknote logistics. It found that the use of standardised transportation units, like NotaTracc® bank note trays, have the potential to have significant impact on efficiency, automation and sustainability across the cash cycle.
Other industries have successfully applied standardized transportation units to their logistics and achieved significant efficiencies. This is not currently the case in the banknote cycle where there are additional complexities, including security and the different priorities of players in the market. However, there are strong drivers for cash to be more environmentally sustainable and more cost-effective which mean that standardization is more and more attractive.
Standardization can be implemented in different ways, depending on the primary goal. These goals can include:
- Increased automation
- Increased sustainability
- Higher transport volumes
- Increased storage capacity
The goals are not mutually exclusive, but solutions will tend to be more effective at achieving some goals better than others.
Standardization goes beyond trays
NotaTracc® trays are the cornerstone from which further standardization and automation can be built but they are not the end of the story. G+D are developing a whole ecosystem which optimizes and automates the cash cycle as far as possible. This leads to faster processing times and less hands-on-cash (and therefore greater security).
NotaTracc® trays integrate with the NotaTracc® loading module which performs much of the job of the operator and eliminates the step of manually stacking, aligning, and feeding banknotes into a processing machine. This not only increases productivity by up to 20%, but also provides operators with more time to focus on value-added tasks such as doing a re-pass of banknotes and reducing the number of rejected banknotes in this case by 50%.
The integration of hardware with software creates further efficiencies and G+D can now offer fully automated vault-management systems. First implemented in Rwanda, the integrated system handles processing cash, finding counterfeits, bringing in new banknotes, and supplying the country with cash. The implementation of a new cash center with standardized cash boxes, intelligent robotic systems, and real-time inventory management control also allowed them to achieve a 300% increase in inventory.
Real world benefits
The benefits of standardization are not abstract and have already been realized by a number of financial institutions. For example:
- At NatWest, the use of standardized, using NotaTracc® trays coupled with automated loading modules have increased throughput by more than 20%, reduced waste and removed hands-on-cash processes.
- At the National Bank of Rwanda, the standardization of cash boxes and vault automation has tripled the bank’s capacity for banknote storage, increased security, saved operational costs and extended the lifetime of banknotes.
- At GSA/Loomis, standardizing on the use of NotaTracc® trays has brought internal efficiencies and enabled circulation of trays between partners. This has eliminated the transportation of cash in single-use plastic bags and cut the repacking and shipping of loose cash at transfer points.
What are the advantages of NotaTracc® solutions?
- Better sustainability: NotaTracc® solutions reduce packaging waste and improve the efficiency of transportation
- Automation of loading: NotaTracc® solutions allow for the faster loading of machines and a reduced number of manual interventions
- Automation of vault management: the complete end-to-end automation of vault management becomes possible with NotaTracc® solutions
Cash Cycle Standardization and Optimization
Learn how the standardization of transport units in the cash cycle directly determine the level of automation, the efficiency of banknote transportation, the optimized use of storage space, investments, and the effect on environmental sustainability.
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