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Automated Storage and Retrieval System (AS/RS)
An integrated Cash Center design connects all functional areas including receiving and shipping, processing of deposits and order preparation, and storage in vaults. Warehouse automation comes along with an automated storage and retrieval system (AS/RS) for the vault to minimize required storage space and manual handling operations. The reduction in having hands on valuables prevents human errors and increases overall security level.
Requirements and benefits:
Introduction of packaging standards through standardized and tamper-proofed box-systems for banknotes and coins is necessary for automated vault systems. Standardized boxes supports intra-logistics inside the cash center, but also automated handover of shipments to/ from CiT transport.
Introduction of IT software tools for warehouse/ vault management systems interfacing the AS/ RS and processing systems. This enables an automated tracking & tracking and an instant inventory management.
Adjustments of process and security policies for cash centers, if manual processes are replaced by automation. For instance, regular manual audit of the complete vault inventory in 4-eyes principle can be adapted to random checks by category.
Blue Ocean strategy
Method to develop long-term profitable business models and processes. The idea is to focus on new or modified business areas (blue ocean) instead of competing in mature markets and business fields (red ocean). Target is to introduce advanced service portfolio by value innovation including optimized supply chain and cost structures resulting in additional customers, customer satisfaction and cost advantages against market followers.
Cash InfraPro adapts the strategy and methods to cash handling industry. Benefits of Blue Ocean workshops:
Business strategy plan that differentiates service portfolio from competition
Sales offering focused on customer needs and attractive pricing
Redefined organization roadmap and implementation plan
Cash inventories/ cash holdings
All time correct inventories for cash points are essential for advanced cash cycle management concepts, including cash forecasting, just-in-time delivery of cash shipments, “note held to order” (NHTO). All concepts aims to reduce cash holdings and linked capital within the cash cycle or for each cash point, e.g. ATMs, vaults, branches, cash centers.
Optimization of cash holdings needs mainly process adaptations in logistics at wholesale cycle and branch cycle level in conjunction with adequate software tools for planning and controlling of inventories.
Following concepts are in practical use:
Cash optimization for ATM networks with functionalities for cash monitoring, forecasting, planning and just-in-sequence delivery
Cash optimization for cash center/ branch networks, incl. “notes held to order” inventories for arrangements in which retail banks or CiTs manage cash on assignment or on behalf of Central Banks
ECI program: Initially introduced by the Federal Reserve Bank to optimize US currency holdings worldwide and to reduce connected investment costs for cash vaults. The currencies are transferred to the accounting system of the Central Bank, but physically held by a financial institution within its secured facility.
EDI communication for cash logistics
Competitive market advantages are connected to economies of scale within cash supply chain depending on automation and standardization. Advanced processes need organizational capabilities; especially in data analytics and data exchange to ensure interoperability between involved parties in cash cycle.
EDI standards consist of globally used auto-ID formats, barcodes/ RFID and EDI communication (XML messages) to operate the cash supply chain more secure and efficient. Sophisticated GS1 Standards for cash logistics supports cash supply chain with added value:
Automated cash order management (EDI communication for order to invoice processes in cash logistics)
Automated updating of tracking & tracing status related to shipments (EPCIS)
Automated handover procedures for cash shipments by electronic protocol (EDI messages of eProtocols)
Just-in-sequence delivery for ATM replenishments (ATM inventory report, ATM cassette identification and pooling by RFID or GS1 barcodes)
Authorization and access control of ATM/ vault by electronic locking systems (EDI messages for eLocks)
Standardized connectivity of cash processing systems to back office systems in cash centers (EDI guideline for cash handling machines)
IBNS technology for cash logistics
The intelligent banknote neutralization system (IBNS) is a security system for cash transport and storage which protects banknotes against unauthorized access to its content. In case of a detected attack all cash is marked from the system by permanent ink stain. Such marked/ neutralized banknotes are highly conspicuous and cannot be brought back into circulation easily. The effect is that IBNS protected cash makes stealing neutralized banknotes impractical, deterrent and uneconomical.
IBNS focuses on using technology to protect people, valuables and equipment whilst minimizing the use of weapons and armoured vehicles.
Tasks for implementation of IBNS technology:
Evaluate functional, technical, organizational and legal aspects for IBNS market deployment
Set up of implementation strategies related to best-in-class processes
Qualifications of IBNS solution suppliers
Adaptation to users environment including proof of concepts
Introduction of IBNS in continuing CiT, cash centers, ATM operations
Mobile banking is a term to refer to mobile payment systems that allows banking customers to conduct financial transactions through a mobile telecommunication device such as mobile phones, tablets or wearables. Mobile banking differs from cashless payment which involve the use of credit/ debit cards at the point of sales (POS) or ATM.
Mobile banking classifies in four inter-related concepts:
Mobile accounting and payment with mobile wallet apps
Mobile couponing and connected loyalty programs
Mobile brokerage/ transfer
Mobile financial information services
Emerging technologies, such as Near Field Communication (NFC) and additional functionalities of apps will achieve superior customer experience with bi-directional communications. Future task is to enable ATM and POS terminals as pass point between cash and cashless/ mobile infrastructure.
OR models for cash cycles
Operations Research (OR) modeling is a discipline to help in the decision making process. Emphasizing on human-technology interaction and its focus on practical applications, operations research is overlapping with other disciplines, notably industrial engineering and operations management.
Cash InfraPro uses operations research analytics in case of:
Financial optimization of business plans for new cash/ cashless infrastructure
Optimization models for cash center and warehouse processes, transportation services and supply chain management
Simulations for cash cycle policy models
Total Productive Maintenance (TPM)
Total Productive Maintenance is a standardized method in Lean Management with the aim to increase machine up-time and to reduce unplanned idleness to a minimum. One target is to make the machine operator in a cash center responsible for his machine/ equipment and to confer routine maintenance work to him. The TPM principles can be transferred also to cash center operations as well as trucks and ATM life cycle management.
Basis of TPM is the serviceability, maintainability, access and the easy setting up of machines and equipment in alliance with ongoing control of KPIs on regular basis. System availability, performance and quality can be defined and measured by Overall Equipment Efficiency (OEE).
Benefits resulting from TPM:
Improved availability/ up-time of machines and equipment, e.g. cash processing machines, trucks, ATMs
Improved working situation for operators and shop floor management
Ongoing control of machine/ ATM performance by OEE monitoring