The Evolution of Cash Management & Why the Future of Cash is Automated
January 9, 2019
Safety was and continues to be one of the biggest concerns in cash management. The concept of cash management equipment essentially started as a singular equipment, a drop safe, where employees manually deposited cash into a hard metal safe to prevent external robbery threat, has evolved into technology-driven devices saving businesses millions of dollars in shrinkage, labor costs, and operational inefficiencies.
Smart Safes were developed to be an electronic versions of a drop safe where bills are read, validated, and accounted for by what started as rudimentary on-device software. This basic technological feature ensures that employees are held responsible for what they deposit into the machine. So, while an employee could claim they dropped $2,000 into the drop safe without accountability, a Smart Safe electronically verifies that $2,000 was, in fact, received by the machine.
Smart Safes have evolved into an exponentially more powerful hardware with on-device software rivaling and complimenting POS systems.
Source: IHL Group
How Much Is Cash Really Costing You?
Source: IHL Group
Recyclers have taken the cash management evolution even farther. The function of the recycler took some of the basic principles of smart safes by keeping cash safe and accounting for cash deposits, but it also elevated the industry by introducing efficiency beyond what can be gained with employee cashroom training. The recycler conducted cash room functionalities, significantly reducing cash handling time as well as labor costs.
Labor efficiency is found when you move beyond the physical counting of cash to truly accounting for and optimizing the flow of cash through your business. An analogy would be taking 15 minutes to walk a mile versus taking 1 minute to drive that same mile. That’s what a recycler is doing - taking cash and analyzing the movement each bill and coin should make through an automated system.
A recycler’s powerful technology allows Big Box retailers that have multiple cashiers recieving their start tills and ensures they receive the correct amount of funds needed for the day’s work, in the shortest amount of time.
Labor efficiency is closely interconnected with cost efficiency. In addition to cashiers, back office employees, corporate employees, different functions within IT, loss prevention teams, the full gamut of operations, and treasury teams ---all benefit from the speed and accuracy in which recyclers efficiently process, account for, and report the usage of cash.
IT teams who used to scour an organization for information they needed from various incompatible sources can now get the information they need from a single system. Treasury teams who face high employee turn-overs and who must keep re-training employees on cash handling procedures – keeping the correct mix of notes in the till, keeping the correct stocks of cash for change, monitoring how much cash is coming in on certain dates (i.e. Black Friday Sale), and creating forecast models – save significantly in labor costs and overall operations costs.
The evolution of cash handling from a single equipment hardware to intelligent devices with automated software technology is where the future of cash management solutions is the future of the cash industry.
Cash is a Cross-functional Challenge & CashComplete™ is the Solution
Cash automation is for both the small business owner as well as the large global enterprise. Just as a small convenience store owner can log into a system and see in real time what is being processed in his/her POS and verify it against what has been received by the smart safe, or even the recycler – a global enterprise with hundreds or thousands of locations, can know exactly what’s going on at each store level, using accurate data, enabling them to make strategic decisions about how to operate their business more competitively.
The future of cash demands that businesses arm themselves with efficiency against encroaching competition by scrutinizing every area of the enterprise where cost savings can be made, and operational efficiencies can be put in place.
Don’t short change yourself with nothing less than a fully integrated, fully automated, cash management solution system.
Mery Vieira Marketing Manager, Americas