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Cash management revolution

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A global revolution in the way cash is handled is on the way for the world’s retailers.

After two years of research, consultation and development, G4S Cash Services has launched a suite of retail cash solutions designed to make notes and coins – already the most efficient payment method for retailers– even more profitable and secure.

The approach has been to produce an end-to-end process which minimises the need to handle the money while at the same time enhancing both security and transparency.

The main components of the new G4S solution are:

Pilot schemes have already been trialled successfully in the UK, the Netherlands and Finland and a worldwide roll-out of the offering is planned for 2008.

Darren Taylor, G4S Cash Services retail director who masterminded the evolution of the process, said:

“It started because our retail clients came to us and asked, as we were the experts in cash handling and the partner they trusted with their cash today, whether we could help them reduce the cost of using cash. Typically, retailers spend between 0.4 and 1.7 per cent of their turnover managing their cash processes, which can represent up to 25 per cent of their operating margin. That is a lot for a sector where margins are normally very tight.

"Leading retailers now acknowledge that only a partner who can deliver solutions across all parts of the payment cycle can maximise the value to them. Part solutions – such as just providing hardware into a retail store – deliver only a fraction of the potential savings and typically add in costs elsewhere for the retailer.

“Cash is, of course, already more cost efficient than electronic payments. The same transaction would cost a retailer 4.5 pence in total if the customer paid in cash, approximately 7 pence if it were a debit card payment and around 13 pence for a credit card payment.

“This new development from G4S makes card payments comparatively even more expensive to retailers than the current 50 per cent+ extra cost for debit cards and the 250 per cent+ extra cost of credit cards.

Taylor continues: “We have partnered with many of the global leaders in cash technology for hardware and developed optimum solutions utilising their technology competence and our unique knowledge.

“There was no existing software that would deliver the functionality and benefits we wanted for our customers so we developed a package from scratch with a leading specialist.

An end-to-end solution for the international market

“Our suite of solutions kicks in from the point of payment at the till and extends through all elements of the cash cycle to the point monies are deposited into the customer’s bank account. It is the first true end-to-end solution and we believe it will revolutionise the cash management industry for retailers.”

The G4S solution is so versatile that it will adapt to the needs of all retailers, whether they are fast food chains, petrol stations, convenience stores, specialist stores, supermarkets or department stores.

G4S has initially launched a number of solutions to meet the needs of different types and sizes of retail outlets. These solutions vary in functionality and capacity to accommodate the requirements of different retail formats. In addition to these initial solutions there is a pipeline of further solution offerings and additional value creating enhancements still to come.

For retailers, the cash solution starts with a short period of consultation and analysis. Then the saving starts – from day one. All the components are provided by G4S and no capital investment is required. “The retail cash solution is just the beginning. Our development plans are already looking at other areas, such as banking, gaming and leisure,” he adds.
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This page is an edited version of the article by Keith Blogg featured in the September 2007 edition of International.
Download the full article: application/pdf Cash management revolution
Each solution delivers four fundamental advantages:

Lower costs in cash management.


Labour and other costs, such as cash offices and air tube systems, are removed from the cash handling bill. Cashiers do not need to count at the end of the day and head cashiers do not need to fill seal bags or transport cases. Nor do they need to order any money. The internal risks inherent in handling cash are almost completely eliminated.

Improved cash flow/value management.


More efficient and secure cash handling results in a smaller need for float money. Data management can tell at any time how much money is in a store, giving the possibility of optimising its use. That means more cash can remain in the bank earning interest. In many markets the cash banked becomes available faster.

Loss reductions.


The significant losses which retailers experience on turnover is often reduced by between 50 and 100 per cent by G4S’s total management of the cash cycle. Many of the opportunities for staff fraud and miscounting are eliminated all together.

Improved management information.


G4S has developed a global software backbone to manage the information to and from the G4S cash management devices. By delivering  exactly the same solution with exactly the same process in any country the process provides standard reporting. This means, for example, that a director of a fast food chain can see how much has been taken in each store across Europe. Or a petrol company executive can see which five petrol stations lost the most money during the past week. “This is really powerful information which has not been so readily available before,” Taylor observes.
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