Case Study Summary

The Bank operated in multiple states with multiple armored carriers providing overlapping services. The objective was to consolidate the use of vendors through a  Request For Proposal (RFP) project and renegotiate contact terms to better serve the Bank's needs. To better equip the Bank's internal sourcing department, they solicited external subject matter experts to better facilitate the process.

The Client

Top 20 US Bank with a substantial regional, multiple state commercial cash business.

THE CHALLENGE

The Bank was aware that they had inefficiencies as a result of bank acquisitions and rapid expansion of treasury products requiring the services of third party armored carriers. Over time the business had been managed locally by state and needed to be assessed from an enterprise-wide perspective.

THE SOLUTION

DIG completed an in-depth data analysis and review of the Bank's currency usage for ATMs, Branches, Cash Vaults - both internal and external. The project included evaluating service contracts, service usage, and preparing and designing the RFP structure/questions, to ensure an accurate comparison of vendor submissions. DIG assisted the Bank through the vendor interviews, selection, and contract negotiations.

THE RESULTS

Through proper usage of services and vendor consolidation on a market by market basis, DIG was able to assist the Bank in developing a multi-year contract resulting in annual hard dollar savings of over $3 million per year and an additional soft dollar annual savings of over $2 million per year.