28 Jun 2019 | 11.58 am
G4S Helps Retailers Reduce Cash Management Costs
‘Between 5% and 15% of retail costs are cash management costs’
28 Jun 2019 | 11.58 am
More and more businesses are seeing the benefits of investing in intelligent cash solutions, explains Damian Young, Managing Director of G4S Cash Solutions Ireland
In an economy where cash is decreasing, cash management costs continues to be a significant proportion of overall costs in a business. More and more retailers are seeking ways to reduce this cost, as competition and market forces demand more efficiency to deliver the customer expectations.
Cash costs in the business do not solely reflect the cost of banking fees, but the wider costs in the business – the risk of cash leakage, back office cash management costs, theft, ‘cashing out’, cash delivery/collection and cash flow costs. In many businesses this can be up to 15% of total costs*.
While this is stark, losses in physical cash as a result of fraud and theft is significantly lower than losses resulting from virtual or cybercrime. According to a 2018 PWC report, 11% of businesses stated that the cost of cybercrime in their businesses was more than €4m, with 60% of Irish Businesses stating that they had suffered cybercrime in the last two years.
Intelligent Cash Solutions
Businesses are investing heavily in the prevention of cybercrime attacks, but businesses too are investing in reducing the cost of cash in their businesses. G4S Ireland has seen a marked increase in businesses investing in ‘Intelligent Cash Solutions’ designed to reduce risk of cash losses and save sizeable cash management costs, up to 70% in many businesses.
One of the many advantages of investing in Intelligent Cash Solutions is the ability to improve cash flow in the business. Cash flow remains the life blood of any business and more businesses fail because of cash flow issues than lack of sales.
Many businesses deposit their takings once or twice a week and as such are holding vital cash flow outside of their accounts. Getting automated credit for their cash on their premises is one of the key features of Intelligent Cash Solutions, which provides business owners with peace of mind and vital cash flow.
With cash point of sale transactions still accounting for 70% of the total number of transactions in Ireland, cash remains king and businesses need to invest in making this efficient. It is estimated that between 100 and 500 hours is consumed in cash management activities, which presents high costs and reduced time to be with customers. The efficiency drive many businesses are looking to execute reduces or even eliminates this overhead and allows the business to reinvest much needed resources to selling to its customers.
Unique Cash Management Solution
G4S has been at the centre of supporting businesses throughout Ireland with implementing Intelligent Cash Solutions. Our solution, Cash360, offers customers an end to end cash management solution that is unique in this market. The solution provides the technology, cash flow software, cash collection, cash processing and cash crediting for customers, thus removing a range of cash management overheads from the business.
One such customer, a large multi-store retailer, states: “Cash360 automation has greatly improved our cash flow and ability to reconcile both locally and centrally. The solution counts and reconciles cash, gives peace of mind for cash flow and the added benefit of improved cash security cannot be ignored. Additionally, the total system is a cost-effective way to deliver these benefits.” This is testament to the value of this solution in the business.
G4S Cash Solutions Ireland continues to invest in innovation and looks forward to continuing to support Irish businesses throughout the country.
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