Why Retailers Are Having To Manage More Cash

In many parts of the world, central banks and retail banks have been pulling back from operational activities within the cash cycle.

This is no different in South Africa with the Central Bank implementing criteria that tend to push these operational services further along the cash cycle.

More and more cash is being recirculated away from banks and often in increasingly smaller cycles, such as inside an individual store. This has led to retailers having to dedicate more time, resources and money to managing cash.

MANUAL CASH HANDLING IS HURTING RETAILERS

Taking care of cash processes occupies shop staff before the start of business, during the day and after opening hours with tasks such as float preparation, till skimming and reconciliation.

This is hurting retailers for a number of reasons:

• There is a high risk of cash differences

• Cash-counting errors are hard and time-consuming to track

• There is a high level of staff and managerial involvement

• The risk of internal theft and in-store robbery is greater

HOW TO MAKE CASH MANAGEMENT MORE EFFICIENT

There are multiple costs for retailers involved with processing cash but these can be reduced.

Automated cash management cuts the time spent working with cash, lessens the number of cash-related procedures and limits the number of people required to be involved in cash processes.

Closed cash management, for example, is a method of combining front and back office systems which removes the necessity for cash to be handled manually by shop staff.

As well as the obvious security benefits, advantages include the elimination of cash differences, automatic reconciliation and the refocusing of resources on more value-driven activities.

Gunnebo has a range of cash handling systems that will assist retailers and are able to advise on the best solution for your retail environment.