The design of cash centers determines the efficiency of the entire cash supply chain. The installed processes and technologies must be adapted to the cash deposit and order volumes. The fluctuating demand in banknotes and coins during and after the coronavirus pandemic has made it clear that each organization of Central Banks, commercial banks and cash-in-transit companies (CiT) have to meet higher requirements for dynamic order processing in the future. Smaller order and deposit volumes in combination with reduced lead times pose new challenges for today's cash centers and transport organizations, for which traditional distribution models with pallet technology are not optimally prepared.
Automation and digitalization in logistics with increasing priority
Automated cash processing for banknotes and coins is installed in (almost) all cash centers worldwide. However, the Overall Equipment Efficiency (OEE) of the systems lags behind customer expectations, if 50% of the possible productivity often not being achieved. The most common reason is an inefficient logistics in the cash center caused by a high variety of non-standardized transport units with pallet or bulk container logistics, and an insufficient process support from a cash center management software/ Warehouse Management Software (WMS). Both are basic requirements for further process automation in cash centers.
The logistics requirements of fulfillment centers e.g. in e-commerce business have given new automation technology a real boost in the last 10 years, so that today cost-efficient vaults in the smallest spaces with high throughput demands are possible based on optimized cash boxes in conjunction with automated warehouse technology. Optimized cash boxes mean reusable containers in a tamper-proof design that are suitable for manual (with weight limit 15 kg) and automated handling. This enables highly flexible and fast processing of orders without having to repack the contents several times, as is common in cash logistics with larger boxes stored on pallets or in bulk container handling.
Future distribution centers will therefore be able to use improved automation technologies in logistics, for instance automated storage and retrieval systems (ASRS) and robotics can increase overall productivity in the cash center. This opens new opportunities for the development of advanced and sustainable cash supply chains as new cash center facilities or renovating existing ones can be deployed.
A tech-on-demand approach
All of this shows that the cash supply chain must follow a more flexible range of services in the future. The locations and design of the cash centers in conjunction with a dynamic transport organization are the elementary cost levers.
Forward-looking concepts will utilize the benefits of available technology:
- Hub-and-spoke distribution networks to shorten transportation routes between cash centers and regions with major population,
- Dynamic transport organization in relation to Transport Management Systems to achieve an optimized ATM replenishment, and supply of bank branches and retailers,
- Smaller transport units based on standardized and reusable cash boxes for storage and transport,
- Cash center with higher automated banknote and coin processing, supported by automated storage and retrieval systems/ ASRS that enable fast response times for orders,
- Modern cloud-based Order Management and Warehouse Management Systems that enable such efficient and fast processes at best cost.
