Your Guide to Cash Supply Chain and Inventory Management


The Cash Supply Chain Game Has Changed. Do You Have the Tools To Manage It?


Did you know that credit unions and banks, not retailers, have one of the most complex supply chains? Specifically, I am referring to the cash supply chain.

When supply chains are dissected down to the granular level, overall cash supply chain management has a lot of moving parts. A main influencer is the increased use of more complex technology across the supply chain including ATMs, Video Tellers, Kiosks and Recyclers.





What is Cash Supply Chain Management (SCM)?

Banks and credit unions, not retailers, have some of the most intricate supply chain systems in the world. The main influencer is the increased use of more sophisticated technology such as ATMs, Video Tellers, Recyclers and Kiosks.

Supply chain management (SCM), or inventory management, is the process and activity of sourcing materials that an enterprise needs to create a product or service and deliver that product or service to its customers.




SCM applications are used by almost every other industry today. Banks and credit unions are behind the times regarding supply chain management. Retail products and currency move in a very similar way through the supply chain.

The image to the right depicts a box of cereal moving through the retail supply chain compared to currency moving through the bank supply chain.

The goal of SCM software and consulting is to improve supply chain performance. Timely and accurate supply chains allow businesses to order and ship only as much product that is needed for a given time period, with buffers. Effective supply chain systems help both suppliers and locations reduce excess inventory. This decreases the cost of producing, shipping, insuring, and storing product that is unused.


What is Happening in the Banking Industry Today?


Today, most banks and credit unions use a homegrown manual system to manage currency throughout the supply chain. To predict how much of each denomination a branch needs at each cash end point, the banking industry typically relies on static limits, manual excel spreadsheets, emails, gut feelings, fear of running out of cash and branch manager experience.

Additionally, a branch usually has a security limit set by the armored car carrier and bundle rules set by the money supplier. The end goal is to service customers, but not have too much sitting idle for security purposes. The bank must calculate the correct replenishment and delivery schedule based on all these factors. Additionally, each branch or ATM location has its own unique demands based on their cash technology including ATMs, ITMs, cash dispensing machines (CDMs), and recyclers, so each location needs to be calculated separately.

Based on data received from over 300 banks and credit unions with $300 Million to $50 Billion in assets, the complex technology numbers speak for themselves.


Departments in a bank are affected by supply chain management and often operate in silos because of the manual processes hiding inside the bank as shown in the graphic below.

Departments Impacted by the Cash Supply Chain



Bank cash supply chain management contains many moving processes. The image to the right shows the flow of cash through an entire network. There is a lot of equipment, services and processes required to distribute cash through the network.

Orders and deposits can occur with the central bank, the money supplier, internal/external vaults, ATMs, ITMs, and recyclers. Then the usage changes day over day by the merchants and customers' demand.

Many retail banks and credit unions have not effectively addressed the growing complexity of their devices and supply chain. Most financial institutions have 20-30% in excess cash across their branch, ATM, ITM, Vault and device network. Deloitte and Diebold Nixdorf have both reported that ATMs/ITMs have on average 40% excess cash. Additionally, most financial institutions have not maximized their effectiveness on armored courier services by calculating delivery cost vs. cash usage vs. carrying costs.


What Challenges are Banks and Credit Unions Facing in Cash Supply Chain Management Now?

There are many challenges currently facing banks and credit unions specifically as it relates to the COVID-19 Pandemic,

  • Ordering Cash Centrally
    • If a bank or credit union used to order cash through a decentralized ordering process, they are now having to switch to a centralized ordering process. This means one person is managing the cash orders for all branches and ATMs, which is recommended during this time of uncertainty when there may be branch and lobby closings, and staff that’s out sick
  • Filling their ATMs/ITMS
    • Many institutions are unable to measure or fill their onsite ATMs due to branch lobby closings caused by the pandemic. This has led the armored car carriers to have to step in and add these new fulfillments to their routes
  • Demand versus Usage – Increased Cash by 20%
    • More customers are stockpiling cash because they have a fear of running out. It has been reported by media outlets such as Forbes, that customers are withdrawing larger than normal amounts of cash by about 20%
  • Cash-In-Transit and Supply Chain Disruption
    • Depending on the armored car carrier, lead time and cash delivery frequencies are changing. It is important to be in touch with your armored car carrier and money supplier to ensure you are timing your deliveries correctly

This current pandemic has led many regulatory bodies including the FFIEC, FDIC, NCUA, OCC & Federal Reserve to update their recommendations for Business Continuity Planning (BCP) and Pandemic Planning for the first time in 13 years. That takes us back to before the 2008 financial crash. This updated guidance identifies the actions that financial institutions should take to minimize the potential adverse effects of a pandemic.

Updated Guidelines & How It Relates to the Supply Chain for Cash:

  • Communicating and coordinating with critical service providers and suppliers
    • Money suppliers and armored car carriers
  • Preparing for 40% of the workforce to be absentee
    • How to order cash based on data and analytics in the event that 40% of your branch, operations and finance staff is unable to work
  • The updated plans should consider customer/member reactions and ATM cash
    • ATM/ITM fulfillment in the event of a pandemic and lobby closings
  • Ongoing Oversight program to review and update the plan
    • Keeping up with current daily, monthly and quarterly cash usage to ensure you are prepared at anytime
COVID and Cash Presentation_Final-thumb

If you want to learn more about the updated pandemic planning guidelines and how to overcome cash supply chain management challeneges, check out our lastest webinar in partnership with Loomis: "Crisis Management and Cash: COVID-19 and Future Pandemic Planning."


Click Here to Download the Webinar

How does C3 Financial Help Financial Institutions Manage their Cash Supply Chain? 

C3 Financial is a cloud software solution which focuses on Cash Operations and Management and Process Enhancement and Cash Optimization.

  • Process Enhancement
    • Applies inventory management principles that improve overall cash operations and reduces cash time commitments by 80%
    • Allows for a centralized or de-centralized approach to cash ordering
  • Actionable Intelligence
    • Provides predictive analytics and forecasting for cash orders and deposits with a 95% accuracy
  • Cash Optimization
    • Reduces excess cash inventory by 20-30%
  • Real-Time Reporting
    • Provides analytics, reports and dashboards for audit controls and risk management
  • Flexible Design
    • Allows for multiple organizational structures and integrates with most teller platforms, money suppliers & armored cars

C3 Financial Highlights

  • Seven Cash End Points – Vaults, branches, tellers, ATMs, ITMs, CDMs, TCRs and kiosks
  • 23 Teller Platforms
  • 23 Denominations
  • 14 Money Suppliers
  • 7 Armored Car Carriers
  • Multiple Workflows
  • 40 Reports and dashboards

4 Key Takeaways

four keys

Learn More About C3 Financial


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Lake Trust Credit Union
Assets: $1.6 Billion
Lansing, MI

“Lake Trust Credit Union needed a streamlined and centralized cash ordering process for its branch employees…We sought a software solution that enabled one group to manage the branch cash ordering, not each individual branch. The charts and graphs easily identify peaks and valleys in the day-to-day branch ordering process."

HarborOne Bank
Assets: $2.9 Billion
Brockton, MA

“HarborOne Bank required a centralized solution to manage the bank’s expanded cash inventory in efforts to streamline operations and align all aspects of the bank’s cash management process…”

AltaOne Federal Credit Union
Assets: $636 Million
Ridgecrest, CA

"C3 Financial’s central requisition console and file extract feature for FedLine® Web enables AltaOne employees to receive and approve accurate order recommendations, then easily send all cash orders in one file for the credit union’s 12 branches and 15 ATMs directly to the Federal Reserve Bank.”

Queensborough National Bank & Trust
Assets: $1.1 Billion
Louisville, GA

“C3 Financial’s central requisition console to consolidate all of our cash orders for mass submission to our virtual vault with our armored car provider (Loomis).”

Randolph-Brooks Federal Credit Union
Assets: $7.1 Billion
Live Oak, TX

“To support this level of growth, we required centralized cash management software that enabled our personnel to meet and sustain our high levels of member service throughout our network. C3 Financial provides us with optimal cash inventory at all locations.”

The Farmers Bank
Assets: $551 Million
Frankfurt, IN

"Our team enjoys the ease of the ordering process, which allows them to quickly submit to the Federal Reserve Bank’s FedLine® Web. C3 Financial gives us a central location where all cash data is housed and a standard process across our entire branch footprint."

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Who is logicpath?

Founded in 2008 in Atlanta, Georgia by Douglas Ceto, logicpath has a client portfolio that expands across all 50 states and Canada. Logicpath is proud to have earned the trust of over 2,000+ banks and credit unions with asset sizes ranging from $18 million to $99 billion.

Learn more about our company here. 

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