Returnable cash boxes for optimizing the cash supply chain

Ideal packaging units are based on the dimensions of a banknote. These are packaged in defined aggregation levels, usually in packets/ straps of 100 and 10 straps per bundle (1,000 banknotes). These packaging units are standard at printing works and at central banks worldwide and are largely automated through banknote processing systems at packaging stage 1.

The next logical step towards further standardization in cash logistics is taking place at packaging level 2, which involves appropriate containers/ boxes for storage and transport of banknotes. However, this objective is opposed by the conflicting interests among the parties involved in the cash cycle. Such situation leads to a complex variety of packaging types and sizes for storage and transport units within each cash ecosystem. While printing plants often optimize their packaging process by using single-use cardboard boxes in its sizes ranging from 10 to 50 bundles; many commercial banks use a wide variety of safebags, pouches, boxes and containers, typically with a capacity ranging from 2 and 10 bundles. In addition, different ATM cassettes with the standard sizes of 2,000 to 2,500 banknotes are in use, as manufacturers also differentiate themselves through their ATM models and connected cassettes. Logistical perspectives that are elementary from the ground up in other industries are regularly not considered by the “professional cash handlers”.

Cash InfraPro’s assessments of cash centers at banks and cash-in-transit companies (CiT) have shown that these centers must manage no fewer than 15 to 40 different types and sizes of containers in their day-to-day operations. Each additional variant increases complexity costs disproportionately. It is therefore not surprising that CiT service providers consequently agree on the lowest common denominator, which is the safebag. This is a single-use product and an expensive approach in the long run; neither ecological sustainable nor in line with the requirements for process automation.

The Central Banks have the power to optimize the entire cash supply chain. They are the major intermediary and therefore play a key role in determining the efficiency of cash logistics by defining packaging units and delivery schedules. NCBs have generally an internal perspective to their processes, but it is necessary that they take a closer look at the cash logistics and considering the requirements of professional cash handlers for optimizing the cash cycle.

Generally, reusable and returnable containers must be the target of the optimization process. The returnable boxes circulate among professional cash handlers increasing efficiency and sustainability. Container pooling systems can be economically advantageous for NCBs, because they provide a closed-loop system in cash center networks with registered customers; and a cash box utilization rate of 90% or more can be achieved. This considers the environmental aspects of cash logistics as well.

The design and material selection for cash boxes should ensure a robust and dimensionally stable handling (with material of polypropylene in PP/HDPE), while also being stackable on top of one another and nestable inside one another. This function enables an optimization towards storage of empty boxes and the return of empty units to the printing plants in terms of less transports. A benefit for countries or regions that have their own printing plant.

A well-thought-out choice of packaging must consider banknotes and bundles in stage 1, in stage 2 the cash box and transport cart must be designed in a modular design regarding handling, sizing, and security functions. This coordinated design principle enables scalability across all banknote aggregation levels along the cash supply chain - from the printing plant through the central bank to the end customer. This allows banknotes to be efficiently stored, picked, and transported with minimized repackaging.

This approach is reached using a standardized cash box, customized to hold 10 bundles across all common currencies, measuring 500 x 400 x 220 mm. The cash box with one security seal can be integrated into the cash cycle without the need for additional opening, content checks, or repackaging for a seamlessly transfer between professional cash handlers, if the integrity of the cash box and seal is verified. Reducing duplicate process steps leads to greater efficiency in handling during receiving and shipping, processing and storage. The special design of the cash box, featuring a locking and sealing system of the box cover with one seal prevents tampering, avoids damage during transport, and protects the units from environmental factors such as moisture or dust.

Over the past decades, central banks have adopted a pallet-based logistics system optimized for bulk shipments. This system is well-suited for transporting banknotes and coins between production facilities and the NCBs, but it requires repackaging at central bank's cash centers on pallet as well as on box level. While the printing plant delivers mainly banknotes packed in cardboard or wooden boxes on a full pallet, containing at least 600,000 banknotes of a single denomination, the orders from banks for their branches typically consist of smaller units, often less than 10.000 banknotes per denomination.

An advanced logistics principle that is based on transport carts/ trolleys with integrated casters enable more flexible and faster handling processes in the cash center and facilitate transports between professional cash handlers. Trolleys equipped with 12 cash boxes and respective capacity of 120.000 banknotes, or alternatively, 28 cash trays with a capacity up to 84.000 notes have proven its effectiveness in cash logistics due to their size and design. They allow cash operators direct access to each individual cash box or cash tray of the trolley. This provided efficiency advantages in order picking at the cash center when comparing it to pallet logistics. Furthermore, the use of transport carts does not require any additional handling qualifications from employees; unlike the transport of pallets with forklifts, where a forklift operator’s license is mandatory. The design of trolleys - in terms of size and handling - requires less space for maneuvering in cash centers and vaults. This can be a particularly important factor in brownfield facilities where space is often limited.

 
1. The volume trap – procurement of too large containers

Standard industrial containers are often too large for banknotes and do not match bundle dimensions efficiently. This reduces packing density, creates multiple packing configurations, limits CCTV visibility, and increases the risk of errors.

Large containers also encourage overloading. A box holding 20 or more bundles can weigh over 25 kg. Such weights are not compliant to fulfill national health and safety regulations and international best practices. This applies to cash operations involving larger boxes weighing over 15kg, the handling of which requires additional lifting equipment and other workplace safety measures.

Recommendation: Use purpose-designed cash boxes with a maximum capacity of 10 bundles. A box measuring approximately 500 × 400 × 220 mm limits the total weight to about 14 kg and is suitable for both manual and automated handling.

 
2. Inconsistent packing patterns when containers are too large

Containers higher than 220 mm allow bundles to be arranged in multiple layers and configurations. Although operators may do this to reduce empty space, it weakens process consistency, visibility, and security.

Bundles should be packed in a standard single-layer pattern - ideally space utilization is two rows of five - with all labels facing upward. CCTV images and box data can then be stored in the Warehouse Management System (WMS) to identify and document packing errors.

With multilayer packing, lower bundles cannot be verified without completely unpacking the box, increasing inspection and processing time.
 

3. “Blind handovers” at responsibility transfer points

Scanning only the box ID at handover points does not confirm whether the seal is intact or has been replaced. Tampering may therefore remain undetected until the box reaches its destination. 

Recommendation: The workflow in the WMS should therefore ensure that during every handover and inventory check, the box-ID and the seal-ID must be scanned both together (double-check). 

Purpose-designed cash containers should preferably use one easily accessible security seal. Standard industry containers require two seals, making checks more complicated; particularly when boxes are stacked on pallets, a depalletizing is necessary to reach the rear seal.
 

4. Cash Center with pallet-logistics and forklift traffic in cash processing area

Pallet and forklift traffic increases accident risks, training requirements, and infrastructure costs. It also creates unnecessary handling because boxes must repeatedly be rearranged by route, customer, denomination, quality, or order.

Recommendation: Restrict forklifts and pallet handling to receiving and shipping areas. Within cash-processing and storage areas, use robust, purpose-designed trolleys for cash boxes, trays, and ATM cassettes.

A trolley-based system improves workplace safety, provides direct access to individual cash boxes, and increases operational flexibility and efficiency.

In modern logistics, the interplay between automation and the size of the cash box is the decisive factor for efficiency, space utilization, speed and throughput, as well as flexibility in accessing the units by operators and/or robots. Current state-of-technology enables an efficient and flexible handling of smaller containers tailored to banknote size and packaging, as is the case with the cash box for 10 bundles in dimensions of 500 x 400 x 220 mm.

Automation technologies that can be perfectly implemented for cash centers and printing plants enable high throughput of (smaller) cash boxes. The available technologies drive the engineering of automated vaults in storage and faster order fulfillment processes using appropriate WMS and handling systems such as automated storage and retrieval systems (ASRS)/ shuttles, trolley logistics, conveyor systems or autonomous mobile robots (AMR/AGV). All this contributes to improving the services level provided by NCBs and commercial banks’ cash centers. Central Banks can fulfill smaller order sizes from commercial banks faster and more flexible through implementing sufficient cash boxes and trolley logistics in combination with automation technology in their centers.

Please don't hesitate to contact us if you need more information or are interested in concepts to optimize your cash logistics.

Source:
Aedler/ ALS Logistic Solutions, Bito-Lagertechnik, Diebold Nixdorf, Giesecke & Devrient Currency Technology, Glory Global Solutions, K. Hartwall, NCR Atleos, Schoeller Allibert