The document discusses SAP's Currency Management and Optimization (CMO) solution. CMO helps banks manage their cash logistics more efficiently through features like demand forecasting, cash transportation optimization, and transparency into cash movements. It aims to reduce costs for banks by decreasing dormant cash levels, optimizing transportation, and integrating new business models. CMO provides benefits like cost savings of 5-30%, reduced business risks, and increased customer satisfaction through better service levels. It leverages SAP applications like Advanced Planning and Optimization for planning and SAP ERP for execution.
Agency Treasury Services (ATS) is a treasury management outsourcing provider that has been in business for 10 years. ATS offers a range of treasury services including cash management, liquidity management, interest rate management, and reporting. Clients can select individually which services they need. ATS works with clients to tailor solutions and manage risks. It seeks to provide transparent pricing and best execution of deals using multiple online dealing platforms and telephone. ATS monitors counterparty credit quality and adheres to client-mandated restrictions on counterparties and investments.
Banks must focus on measuring and optimizing customer lifecycle value (CLV) rather than just satisfying current needs. CLV considers both current and potential future value over a customer's lifetime. To do this, banks need to implement frameworks to accurately measure costs associated with each customer as well as their current, potential, and influencer value to properly segment and serve customers according to their total value. With CLV analysis, banks can improve profitability by focusing on high-value relationships and using influencer customers to promote additional sales.
1. The document provides steps to configure currencies, accounts, journals, partners and generate invoices in a dual currency Open ERP system.
2. Accounts are created with currencies assigned, and journals are configured with default debit and credit accounts.
3. Partners are added and assigned currencies, and customer invoices are generated showing totals in both the customer and company currencies.
The document discusses enterprise resource planning (ERP) systems and SAP, a popular ERP software. It notes that companies often have many disconnected software systems for different departments that make sharing information difficult. An ERP system integrates these systems to provide a single source of information. SAP is highlighted as the most widely used global ERP due to its comprehensive functionality, scalability, and proven track record of successful implementations. However, the document cautions that SAP projects can fail due to issues like improper implementation strategy, change management problems, or inadequate resources and expertise.
The document discusses SAP's organizational structure and hierarchy. It describes key organizational units like company code, sales organization, distribution channel, division, sales area, sales office, shipping point and plant. Company code is the smallest accounting unit, while sales organization represents the selling unit. Distribution channel represents how goods reach customers. The sales area is a combination of sales organization, distribution channel and division.
This document provides an introduction and agenda for an SAP training session. It discusses what SAP is as an ERP system, why companies use SAP, who the major players are in the ERP software market, and SAP's advantages in integration, multi-language support, and standardized business processes. The training methodology and documents are outlined. Finally, there is a discussion of practical tips and opportunities for questions.
The document provides an overview of SAP's financial modules, including Financial Accounting (FI), Controlling, and FSCM. It describes the key sub-modules and functions of FI such as General Ledger, Accounts Receivable, Accounts Payable, and Asset Accounting. It also explains the processes, master data, transactions, and reporting involved in each sub-module.
Study of cash management at standard chartered bankVishnu Prasad
Cash is vital for businesses to operate, like blood is for living organisms. However, cash flows in and out of businesses asynchronously, sometimes resulting in too much or too little cash. Effective cash management is needed to control cash movement and ensure sufficient availability to meet needs. Cash management services provided by banks include account reconciliation, automated clearing house transfers, balance reporting, cash concentration, lockbox services, sweep accounts, wire transfers and controlled disbursement to optimize cash utilization and flow. The primary goal of cash management is to maintain enough, but not too much, cash available when required.
Agency Treasury Services (ATS) is a treasury management outsourcing provider that has been in business for 10 years. ATS offers a range of treasury services including cash management, liquidity management, interest rate management, and reporting. Clients can select individually which services they need. ATS works with clients to tailor solutions and manage risks. It seeks to provide transparent pricing and best execution of deals using multiple online dealing platforms and telephone. ATS monitors counterparty credit quality and adheres to client-mandated restrictions on counterparties and investments.
Banks must focus on measuring and optimizing customer lifecycle value (CLV) rather than just satisfying current needs. CLV considers both current and potential future value over a customer's lifetime. To do this, banks need to implement frameworks to accurately measure costs associated with each customer as well as their current, potential, and influencer value to properly segment and serve customers according to their total value. With CLV analysis, banks can improve profitability by focusing on high-value relationships and using influencer customers to promote additional sales.
1. The document provides steps to configure currencies, accounts, journals, partners and generate invoices in a dual currency Open ERP system.
2. Accounts are created with currencies assigned, and journals are configured with default debit and credit accounts.
3. Partners are added and assigned currencies, and customer invoices are generated showing totals in both the customer and company currencies.
The document discusses enterprise resource planning (ERP) systems and SAP, a popular ERP software. It notes that companies often have many disconnected software systems for different departments that make sharing information difficult. An ERP system integrates these systems to provide a single source of information. SAP is highlighted as the most widely used global ERP due to its comprehensive functionality, scalability, and proven track record of successful implementations. However, the document cautions that SAP projects can fail due to issues like improper implementation strategy, change management problems, or inadequate resources and expertise.
The document discusses SAP's organizational structure and hierarchy. It describes key organizational units like company code, sales organization, distribution channel, division, sales area, sales office, shipping point and plant. Company code is the smallest accounting unit, while sales organization represents the selling unit. Distribution channel represents how goods reach customers. The sales area is a combination of sales organization, distribution channel and division.
This document provides an introduction and agenda for an SAP training session. It discusses what SAP is as an ERP system, why companies use SAP, who the major players are in the ERP software market, and SAP's advantages in integration, multi-language support, and standardized business processes. The training methodology and documents are outlined. Finally, there is a discussion of practical tips and opportunities for questions.
The document provides an overview of SAP's financial modules, including Financial Accounting (FI), Controlling, and FSCM. It describes the key sub-modules and functions of FI such as General Ledger, Accounts Receivable, Accounts Payable, and Asset Accounting. It also explains the processes, master data, transactions, and reporting involved in each sub-module.
Study of cash management at standard chartered bankVishnu Prasad
Cash is vital for businesses to operate, like blood is for living organisms. However, cash flows in and out of businesses asynchronously, sometimes resulting in too much or too little cash. Effective cash management is needed to control cash movement and ensure sufficient availability to meet needs. Cash management services provided by banks include account reconciliation, automated clearing house transfers, balance reporting, cash concentration, lockbox services, sweep accounts, wire transfers and controlled disbursement to optimize cash utilization and flow. The primary goal of cash management is to maintain enough, but not too much, cash available when required.
The document provides an overview of cash management services offered by banks to large corporate clients. It defines cash management and describes various cash management services including account reconciliation, payment services, collection services, liquidity management, clearing services and more. The purpose of cash management is to ensure efficient utilization and movement of cash resources through accurate forecasting and proper timing of cash inflows and outflows. Standard Chartered Bank offers a comprehensive suite of cash management services to corporate and institutional clients globally.
A study of cash management at standard chartered bankProjects Kart
The document is a project report submitted for a Bachelor of Business Administration degree. It examines cash management practices at Standard Chartered Bank. The report includes an introduction that defines cash management and describes Standard Chartered Bank's cash management services. It also includes sections on objectives, research methodology, literature review, industry profile, company profile, results and analysis, a case study, limitations, conclusions, and recommendations. The company profile section provides an overview of Standard Chartered Bank's history and products, with a focus on its cash management services.
The document discusses optimizing the cash replenishment strategy for ATM networks using data analytics and operations research techniques. It proposes a two-part solution: 1) Using time series analysis and forecasting to predict daily cash demands for each ATM. 2) Formulating the replenishment process as a vehicle routing problem to determine optimal routes from cash vaults to ATMs to minimize costs while ensuring ATMs don't run dry. Clustering algorithms and route optimization techniques are used to assign ATMs to routes served from one or more vaults each day. The approach aims to reduce total replenishment costs while improving customer satisfaction.
MCB is Pakistan's largest bank with over 1000 branches. The document discusses MCB's history, organizational hierarchy, operational and functional analysis, marketing analysis, SWOT analysis, problems faced and recommendations. It provides an overview of MCB since its founding in 1947 and nationalization in 1974, to its privatization in 1991 and current status as the top bank in Pakistan.
Traditionally, businesses have believed that
profits indicate success. While it is true that
profits are one of the key indicators of success, many are now starting to realize that there is something more fundamental to their very survival; and that is ‘cash’. ‘Cash is King’- And this holds true for every business irrespective
of its size. The availability of cash balances is a key determinant of a company’s competitive ability, because it provides the means to invest in people, technology, and other assets. Efficient Cash Management is therefore indispensable.
This document provides a summary of a presentation on the introduction to banking operations. It discusses key topics like the changing nature of banking operations, the importance of customer relationship management, the different types of products and services offered to customers, the role of technology in banking operations, the need for asset-liability management, electronic banking and e-banking in India. It provides details on various banking products, services, and operations and how technology has transformed the banking industry.
This document summarizes a case study of ATM fraud at a commercial bank in Pakistan called ACB Bank Limited. The researchers investigated a mapping flaw in the bank's ATM Controller software that allowed cardholders from other banks to fraudulently withdraw cash from ACB's ATMs, resulting in losses of over 21 million Pakistani rupees. The flaw converted rejection codes from other banks to an approval code, bypassing normal authorization checks. The study concluded the bank's internal controls failed to detect this software bug. It recommends stronger controls over payment systems and a review of fraud prevention strategies.
The document discusses cash management services provided by banks. It begins by defining cash management and listing common cash management services such as account reconciliation, automated clearing house payments, wire transfers, lockbox services and zero balance accounting. It then discusses the purpose of cash management, which includes eliminating idle cash balances, depositing collections timely, and properly timing disbursements. Finally, it provides an overview of cash management services at Standard Chartered Bank, including payments services, collection services, and liquidity management.
This document provides information about ATMs, including their history, structure, and uses. It discusses how ATMs work, allowing customers to access cash 24/7 without human intervention. The key components of an ATM are described as the processor, consumer interface panel, card reader, printers, dispenser, and depositor. Alternative uses of ATMs beyond cash withdrawal are also mentioned, such as depositing, checking balances, and transferring funds.
Building a network of mobile money agentsCamilo Tellez
This document is the first section of a handbook on building mobile money agent networks. It discusses different approaches to defining agent roles, with some networks assigning uniform roles to all agents while others differentiate roles. The most common roles involve registering customers, educating them, and facilitating cash-in/cash-out transactions, though these roles can be separated or combined in various ways. The handbook uses M-PESA in Kenya as an example of a uniform agent model and compares this to models used by other mobile money providers that differentiate agent roles.
building a network of mobile money agentsCamilo Tellez
This document summarizes key considerations for mobile network operators in building an effective network of agents to support their mobile money platforms. It discusses different agent models, including uniform models like M-PESA in Kenya as well as heterogeneous models that assign different roles or responsibilities to different agent types. The document also provides guidance on optimal network sizing at launch and during post-launch growth phases, as well as important criteria for recruiting and selecting high-quality agents.
The Transtrack CashWebCommunity software enables banks, cash-in-transit businesses, and retailers to efficiently manage cash logistics and processing. It provides modules for automating backend cash center and transportation processes, as well as communication between organizations. The open platform framework connects to third party systems, allowing customers to integrate existing investments. Transtrack aims to remain a leader in cash technology solutions by taking automation and connectivity to the next level through the CashWebCommunity.
Central Bank Digital Currencies (CBDCs) are being explored by central banks globally as interest in digital currencies grows. The document discusses key drivers for CBDCs including improving payment efficiencies, financial inclusion and enhancing monetary policy. It provides an overview of CBDC projects underway in various countries and regions, with China, Cambodia, the Bahamas, Eastern Caribbean and Nigeria having implemented live CBDCs. The models vary in terms of technology used, offline usability and transaction limits.
The payments landscape has changed significantly and bankers must adapt or be disintermediated by those changes. Check volume will continue to diminish, remote
deposit capture will continue to proliferate, and coin and currency are here to stay.
Online and mobile banking, coupled with increased ATM functionality, will drive consumer banking while non-bank payments and digital wallet services such as Apple Pay are becoming more widely accepted among both consumers and their financial institutions.
New regulations and increased regulatory scrutiny will continue to drive up banks’ costs, while new risks will necessitate improved governance, risk management,
automation, and compliance systems. Banks must re-engineer their commercial deposit products, operations, risk management and cost structures in order to remain competitive and profitable. All of this affects the way that businesses interface with their banks and the costs they bear as customers.
Cash management Optimization - The formula for drastically reducing cash mana...NEORIS
Cash management Optimization, The formula for drastically reducing cash management cost
Neoris Practical InSights
Manuel Hinojosa
Neoris Business Director
CMO decreases immobilized cash by 30-40% and reduces cash transport volume by 20%.
PowerPoint presentations from Fundación Capital's South-South Knowledge Exchange Forum, organized with support from IFAD "Leveraging Opportunities to Encourage Financial Inclusion"
The document discusses trends in corporate cash management services, including a shift towards electronic payments, digitization of checks, and strategic receivables management. It also covers managing risks and controls, and integrating cash, trade, liquidity and risk management. Key issues for corporate treasurers are discussed around visibility, optimized returns and control of funds.
This document discusses ways to reduce cash transportation costs. It begins by looking at why cash needs transporting and factors that increase transportation costs such as attacks on vehicles transporting cash. It then examines how technology can be used to track cash shipments in real-time and monitor driver behavior to improve efficiency. Finally, it explores future methods for reducing transportation costs such as automated bank machines that deposit cash directly and shopping malls that recycle cash on-site to eliminate risky transportation.
The document discusses conducting a cash optimization analysis for a financial institution. It would involve analyzing 90 days of transaction data from 90 ATMs and 10 branches to determine current cash management levels. It would then simulate cash levels if optimized tools and processes were used. A report would compare key metrics like ending cash balances and availability to optimal levels and industry benchmarks to quantify potential improvements. This would help the bank assess benefits before a potential cash optimization solution implementation.
The document provides an overview of cash management services offered by banks to large corporate clients. It defines cash management and describes various cash management services including account reconciliation, payment services, collection services, liquidity management, clearing services and more. The purpose of cash management is to ensure efficient utilization and movement of cash resources through accurate forecasting and proper timing of cash inflows and outflows. Standard Chartered Bank offers a comprehensive suite of cash management services to corporate and institutional clients globally.
A study of cash management at standard chartered bankProjects Kart
The document is a project report submitted for a Bachelor of Business Administration degree. It examines cash management practices at Standard Chartered Bank. The report includes an introduction that defines cash management and describes Standard Chartered Bank's cash management services. It also includes sections on objectives, research methodology, literature review, industry profile, company profile, results and analysis, a case study, limitations, conclusions, and recommendations. The company profile section provides an overview of Standard Chartered Bank's history and products, with a focus on its cash management services.
The document discusses optimizing the cash replenishment strategy for ATM networks using data analytics and operations research techniques. It proposes a two-part solution: 1) Using time series analysis and forecasting to predict daily cash demands for each ATM. 2) Formulating the replenishment process as a vehicle routing problem to determine optimal routes from cash vaults to ATMs to minimize costs while ensuring ATMs don't run dry. Clustering algorithms and route optimization techniques are used to assign ATMs to routes served from one or more vaults each day. The approach aims to reduce total replenishment costs while improving customer satisfaction.
MCB is Pakistan's largest bank with over 1000 branches. The document discusses MCB's history, organizational hierarchy, operational and functional analysis, marketing analysis, SWOT analysis, problems faced and recommendations. It provides an overview of MCB since its founding in 1947 and nationalization in 1974, to its privatization in 1991 and current status as the top bank in Pakistan.
Traditionally, businesses have believed that
profits indicate success. While it is true that
profits are one of the key indicators of success, many are now starting to realize that there is something more fundamental to their very survival; and that is ‘cash’. ‘Cash is King’- And this holds true for every business irrespective
of its size. The availability of cash balances is a key determinant of a company’s competitive ability, because it provides the means to invest in people, technology, and other assets. Efficient Cash Management is therefore indispensable.
This document provides a summary of a presentation on the introduction to banking operations. It discusses key topics like the changing nature of banking operations, the importance of customer relationship management, the different types of products and services offered to customers, the role of technology in banking operations, the need for asset-liability management, electronic banking and e-banking in India. It provides details on various banking products, services, and operations and how technology has transformed the banking industry.
This document summarizes a case study of ATM fraud at a commercial bank in Pakistan called ACB Bank Limited. The researchers investigated a mapping flaw in the bank's ATM Controller software that allowed cardholders from other banks to fraudulently withdraw cash from ACB's ATMs, resulting in losses of over 21 million Pakistani rupees. The flaw converted rejection codes from other banks to an approval code, bypassing normal authorization checks. The study concluded the bank's internal controls failed to detect this software bug. It recommends stronger controls over payment systems and a review of fraud prevention strategies.
The document discusses cash management services provided by banks. It begins by defining cash management and listing common cash management services such as account reconciliation, automated clearing house payments, wire transfers, lockbox services and zero balance accounting. It then discusses the purpose of cash management, which includes eliminating idle cash balances, depositing collections timely, and properly timing disbursements. Finally, it provides an overview of cash management services at Standard Chartered Bank, including payments services, collection services, and liquidity management.
This document provides information about ATMs, including their history, structure, and uses. It discusses how ATMs work, allowing customers to access cash 24/7 without human intervention. The key components of an ATM are described as the processor, consumer interface panel, card reader, printers, dispenser, and depositor. Alternative uses of ATMs beyond cash withdrawal are also mentioned, such as depositing, checking balances, and transferring funds.
Building a network of mobile money agentsCamilo Tellez
This document is the first section of a handbook on building mobile money agent networks. It discusses different approaches to defining agent roles, with some networks assigning uniform roles to all agents while others differentiate roles. The most common roles involve registering customers, educating them, and facilitating cash-in/cash-out transactions, though these roles can be separated or combined in various ways. The handbook uses M-PESA in Kenya as an example of a uniform agent model and compares this to models used by other mobile money providers that differentiate agent roles.
building a network of mobile money agentsCamilo Tellez
This document summarizes key considerations for mobile network operators in building an effective network of agents to support their mobile money platforms. It discusses different agent models, including uniform models like M-PESA in Kenya as well as heterogeneous models that assign different roles or responsibilities to different agent types. The document also provides guidance on optimal network sizing at launch and during post-launch growth phases, as well as important criteria for recruiting and selecting high-quality agents.
The Transtrack CashWebCommunity software enables banks, cash-in-transit businesses, and retailers to efficiently manage cash logistics and processing. It provides modules for automating backend cash center and transportation processes, as well as communication between organizations. The open platform framework connects to third party systems, allowing customers to integrate existing investments. Transtrack aims to remain a leader in cash technology solutions by taking automation and connectivity to the next level through the CashWebCommunity.
Central Bank Digital Currencies (CBDCs) are being explored by central banks globally as interest in digital currencies grows. The document discusses key drivers for CBDCs including improving payment efficiencies, financial inclusion and enhancing monetary policy. It provides an overview of CBDC projects underway in various countries and regions, with China, Cambodia, the Bahamas, Eastern Caribbean and Nigeria having implemented live CBDCs. The models vary in terms of technology used, offline usability and transaction limits.
The payments landscape has changed significantly and bankers must adapt or be disintermediated by those changes. Check volume will continue to diminish, remote
deposit capture will continue to proliferate, and coin and currency are here to stay.
Online and mobile banking, coupled with increased ATM functionality, will drive consumer banking while non-bank payments and digital wallet services such as Apple Pay are becoming more widely accepted among both consumers and their financial institutions.
New regulations and increased regulatory scrutiny will continue to drive up banks’ costs, while new risks will necessitate improved governance, risk management,
automation, and compliance systems. Banks must re-engineer their commercial deposit products, operations, risk management and cost structures in order to remain competitive and profitable. All of this affects the way that businesses interface with their banks and the costs they bear as customers.
Cash management Optimization - The formula for drastically reducing cash mana...NEORIS
Cash management Optimization, The formula for drastically reducing cash management cost
Neoris Practical InSights
Manuel Hinojosa
Neoris Business Director
CMO decreases immobilized cash by 30-40% and reduces cash transport volume by 20%.
PowerPoint presentations from Fundación Capital's South-South Knowledge Exchange Forum, organized with support from IFAD "Leveraging Opportunities to Encourage Financial Inclusion"
The document discusses trends in corporate cash management services, including a shift towards electronic payments, digitization of checks, and strategic receivables management. It also covers managing risks and controls, and integrating cash, trade, liquidity and risk management. Key issues for corporate treasurers are discussed around visibility, optimized returns and control of funds.
This document discusses ways to reduce cash transportation costs. It begins by looking at why cash needs transporting and factors that increase transportation costs such as attacks on vehicles transporting cash. It then examines how technology can be used to track cash shipments in real-time and monitor driver behavior to improve efficiency. Finally, it explores future methods for reducing transportation costs such as automated bank machines that deposit cash directly and shopping malls that recycle cash on-site to eliminate risky transportation.
The document discusses conducting a cash optimization analysis for a financial institution. It would involve analyzing 90 days of transaction data from 90 ATMs and 10 branches to determine current cash management levels. It would then simulate cash levels if optimized tools and processes were used. A report would compare key metrics like ending cash balances and availability to optimal levels and industry benchmarks to quantify potential improvements. This would help the bank assess benefits before a potential cash optimization solution implementation.
1. Currency Management &
Optimization (CMO)
Manage your Cash Logistics efficiently
Girish Nehete,
Business Development
Global Line of Business Banking, APJ
05th June 2008
3. SAP CMO enables banks to handle their cash
logistics more efficient
Key Priority:
Key Priority:
1.To reduce the cost of cash handling
1.To reduce the cost of cash handling
2.Mitigate business and transportation risk
2.Mitigate business and transportation risk
3.Integrate new business models to raise customer satisfaction.
3.Integrate new business models to raise customer satisfaction.
Central
Central
Bank
Bank
Cash Points:
Cash Points:
Cash Center Branches
Branches
Cash Center
ATMs
ATMs
4. Manifestation: Pain for a banks planning
department
Result: High levels of dormant cash and high cost of cash logistics
Heads of planning have no transparency into the processes of cash logistics and have
Pain
difficulties to predict the right amount of cash in the right place.
To reduce the cost of cash a bank needs to
have precise information on customers cash
demand in the future. Central
Central
Bank
Bank
To reduce dormant cash in ATM’s and vaults Cash Center
Cash Center
Cash Points:
Cash Points:
Branches
Branches
of a bank, currency has to be transferred ATMs
ATMs
timely and in the right amount.
Magnitude
To avoid expensive emergency cash
replenishment timely and adequate cash
supply is required
5. SAP CMO enables banks to handle their cash
logistics more efficient
SAP enables a bank to meet one of their
key priorities: To reduce the cost of cash and to mitigate
business and transportation risk, while integrating new business models
to raise customer satisfaction.
.
Save 5 – 30% of the total cost of Deliver complete transparency into all Reduction in number of armored cars
financial operations cash movements reduces the overall business risks
Banco Itaù
Brazil largest Bank
3,000 branches and 21,000 ATMs all over Brazil
Key benefits recognized
Significant reduction in dormant cash in ATMs and vaults
Save 15% of of the total cost of financial operations
Transparent processes allow to take strategic decision regarding cash logistics
Reduction of overall business risk
Direct impact on a banks bottom line
8. What is Currency Management & Optimization?
SAP Currency Management & Optimization supports the currency supply chain for banks –
SAP Currency Management & Optimization supports the currency supply chain for banks –
including:
including:
Forecasting cash requirements
Forecasting cash requirements Cash transportation order processing
Cash transportation order processing
Cash order automation and invoice
Cash order automation and invoice
Cash transportation optimization
Cash transportation optimization matching
matching
Central
Central
Bank
Bank
Cash Points:
Cash Points:
Cash Center Branches
Branches
Cash Center
ATMs
ATMs
9. Issue #1: Dormant cash
Banks treat currency as a commodity
Excess amount of cash held to satisfy customers demand
No forecast of currency demand
Banks are not aware of their cost of holding currency
No visibility of supply network
Control of cash replenishments sometimes with third parties
Banks have not yet centralized the process of currency management
A simple fact:
Current surveys estimate dormant cash level in ATMs
to be between 30 and 60%
10. Issue #2: Inefficient service provider
management
Supplier Negotiation
Banks have no global visibility on their transportation needs
Weak negotiation position with service providers
Order execution and management
Cash transports not optimized by third party providers
Banks match manually service orders with invoices / no integration
A simple fact:
26% of cost in cash logistics is related to cash handling
11. Issue #3: How to mitigate risk
Risk associated with the handling of currency
Embezzlement losses
Threat of robberies
Business risk
Threat of out of cash situations
A simple fact:
From 2000 to 2007 there was an increase of 25,1% in bank robberies in the US*
13. Conceptual structure
of the cash supply chain & solution scope
SAP Banking solution
$ Central bank
Account
Bank
Cash Management
& Optimization solution $
$/# CMO $/#
System
WTU
Cash Point
#
14. Process of Currency Management and
Optimization
Model of currency
Monitoring and managing supply chain
exceptions
5 1
Execute
transportation orders 4 2 Forecast of demand
5 1
3 4 2
Create global currency 3
distribution plan
15. Build a Model of the Currency Supply Chain
Flexible data model W32 W33 W34 W35 W36 W37 W38 W39 W40 W41
August September
Multiple dimensions in time, Time Series rio
d
Pe
locations and notes
Describing transportation
Location
routes, capacities and other
restrictions
Integrates basic business
Bills
logic ATMs and Agencies
Bills
5 1
4 2
3
16. Forecast of Demand
Versatile planning methods A
U Constant Causal Analysis
T
Combining different forecasting methods O
is improving forecast accuracy. M
A Trend
T
Best Pick functionality makes sure the E
suited forecast method is chosen. D
Season
(without trend)
P
Adding a casual analysis of factors like I
“day of week” and holidays will further C
K Trend - Season
enhance accuracy. Composite Forecast
B
E
S Others
T
5 1
4 2
3
17. Create Global Currency Distribution Plan
Supply Network Planning Demand
Planed
Adjusted Plan
Transports
Calculate amounts to be delivered to the Monday 65,000 200,000 200,000
locations
Tuesday 75,000 - -
Dynamic and multi stage safety stock
calculation based on target service level Wednesday 88,000 - -
Simulation and comprehensive tactical Thursday 95,000 200,000 250,000
planning of sourcing decisions Friday 90,000 - -
Optimization of transport loads by Saturday 91,000 150,000 125,000
considering constraints and penalties to
Sunday 50,000 - -
plan cash flow along the supply chain
Optimizes total process cost
5 1
4 2
3
18. Execute Transportation Orders
Integration into back end
5 1
Automated order generation
Electronic Data Interchange with suppliers
Automated matching orders to invoices 4 2
3
Delivery is Delivery of
scheduled money is
requested
Headquarter
Money
Money
Local Local
Received
Received ATM
Carrier Branch
Central- Vault loaded
Money
Money
bank pickup Money on
Money on
pickup
Route
Route
Execution & Monitoring
20. CMO Solution Components
Planning
SAP Advanced Planning and
Optimization
Execution
SAP ERP
Tracking
SAP Event Management
Monitoring
SAP Business Intelligence
Integrating
SAP NetWeaver
21. SAP Offering vs. “ATM Providers”
Only SAP is offering highly structured, traceable, standardized and fully integrated
Only SAP is offering highly structured, traceable, standardized and fully integrated
processes of cash logistics
processes of cash logistics
ATM Providers SAP Offering
Inventory management
Sophisticated demand planning -
Order processing
Order automation ( )
ATM monitoring ( )
Integration into back office -
Three-way order matching -
( ) Process is not executed in real time
23. CMO – Value Generation
Increase Increased cash availability
Revenue Increased service level
Increase
Profitability
Reduce transportation expenses
Reduce risk costs
Reduce Costs Reduce operational costs
Reduced contracting costs
Create Value
Reduce use
of Circulating Reduce cash inventory
Capital
Increase
ROA
Optimize
Optimize use of fixed assets
Use of Fixes (ATMs, Vehicles, etc..)
Assets
CMO is all about value generation
24. SAP Value Proposition Currency Management
Optimization for Banking
Key capabilities Value impact
Planning
Superior Demand Planning through sophisticated
forecast methods 1 Reduction of dormant cash up to
25%*
Optimized inventory management
Role based planning processes leveraging local
knowledge Reduction of currency logistic spend up
Execution 2 to 15-30% per year*
Transparent service provider management
Automated Procurement and Order Processing
Workflow based Invoice settlement Raise customer satisfaction through
3
Logistics route planning increase in service level
Integration
Full integration with ERP
Open infrastructure through SAP NetWeaver 4 Mitigation of overall business risk
Full regulatory compliance (e.g. SOX, IAS, BII)
Flexibility to adapt new business models
5 e.g. outsourcing / shared service center
*) Expert Estimation
28. Summary
SAP CMO enables a bank to meet one of their key priorities: To reduce the cost
of cash and to mitigate business and transportation risk, while integrating new
business models to raise customer satisfaction.
CMO is based on the best-in-class SCM application proven with 350+
customers in all industries
CMO has unique and highly sophisticated planning features like multi linear
regression.
CMO is a global integrated solution combining the power of SAP SCM for the
planning side and the robust execution side provided by SAP ERP for order
management, transport execution and invoice control.
CMO is fully enabled by SAP NetWeaver™ and takes all the benefits of the
Enterprise Service Architecture.