Cash Management and logistics Planning

 

Cash management and logistics planning, that is required during the day is to be planned, and to ensure it is in clockwise precision, that cash is available during the requirement, and thus working in a creative, secretive guarded environment, cash management has always remained in the background even though sufficient cash may not be available during the period of stringent measures.

The secrecy of management of cash is that it should have sufficient requirement of cash available during any time of emergency. The transportation of cash is mainly divided into different requirements. The first requirement is that cash is transported from mints, where currency is printed by the Reserve Bank of India, offices, and chests, of the banks situated in different cities. A tier I city normally has around 15- 30 chests. The cash logistics have companies to transport these chests in phases, as these trucks carry full cash, and they are normally guarded by the Central and State security as they move around the country. It so happens the secrecy is kept to the maximum so that the driver of the logistic vehicle will not be able to know the contents of the vehicle, much of the secrecy is kept on the movement of the vehicle.

In the second phase that are in second and third parts, in which private logistics companies are engaged to move cash-transit it is that chests are shifted to bank branches, and bank replenishment that is the bank branches to Automatic Teller Machines. For cash-in-transit, the logistic company conveying cash rents out armored cars, along with the drivers, handlers, and security personnel, to the banks. The logistic vans carry cash from chests to various branches, as well as from the branches to the chests completing the day, and it is in the chests that cash is sorted into three categories: cash which has to put Automatic Teller Machines, and next cash which can be used for the counter, and the cash which is soiled and cannot be put to use, and put back for circulation, the logistic company takes the responsibility of the complete supply chain. The cash which has to be replenished, the logistics company are not hired or taken by the banks, but by usually Management Service Providers, which manage and maintain Automatic Teller Machines in the confined areas, with logistic support in the supply chain, on behalf of the banks and other financial services companies. There are requests to load a huge amount of cash by banks, to solve the logistic problems in supply chain, and for this purpose, an indent is issued to the logistic company to distribute the cash to the designated bank as per the requirement. The employees in the bank or concerned check their indent, against the logistic company, and the high-value cash are loaded in logistic vans, which transports the cash to the several Automatic Teller Machines, where the operations of cash transaction are bound to be taken as per requirement for the public.

A typical logistic built in a van, which has a well-built vault, and is covered with basic armor, which can carry, basically five working personnel, a set of handlers for handling the movement, and a set of security guards are part in logistic personnel team. The security personnel are hired as per requirement, and are hired as new personnel, and trained as per requirement, with use of necessary firearms, it is a rare phenomenon that ex-police, ex-military personnel are employed as a form of cost reduction for the logistic company or banks.

 On an average daily basis, the cash logistics company transports high value of cash worth nationwide. The logistic company also has its chests in various locations and as some of the foreign banks which do not have such facilities prefer to park their money in these chests available.