What is Cash Logistics?

Moving large amounts of cash – notes and coins – around the market is costly, inefficient, and risky. Today, there are three key issues facing the cash distribution industry.

  • Cash is here to stay

    Credit cards, smart cards, online and mobile e-payments. Despite predictions for the popular rise of these technologies, the reality is that the world’s oldest payment instrument– notes and coins – still thrives with more than US$4 trillion of M0 in circulation globally. And though it is largely invisible to the average tax payer, cash comes at a cost (0.4-1.5% of GDP) to economies worldwide today.

  • Increasing Costs of Cash

    Around the world, Central Banks are realising the costs of moving cash – and are moving to a role of only policymaking, while deregulating the physical cash handling. This means that the costs of moving, processing, and storing cash are now increasingly being borne by the private sector, who seek intelligent solutions to coordinate and control the new complexity of managing themselves.

  • Logistics Problem

    Cash logistics is in the intersection of a financial and a physical logistics problem, with unique challenges. Unlike moving milk or tomatos, cash is not consumed at the end of a linear chain – it simply circulates. Figuring out the right denomination amount, at the right place, and at the right time – to efficiently utilise your cash inventory, reduce excess movement, and minimise cost – presents millions of possible combinations.

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