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Cash Logix wanted to minimise industry cost by balancing the cost matrix which includes inventory holding costs, processing costs, transportation and source supply costs. Cash Logix also wanted to improve visibility across the cash wholesale network.

Business Situation

  • Cashlogix is a non-profit planning organisation established by the four major banks in SA to aid optimisation and cost management of cash holding and movements between the Reserve Bank and the banks.
  • Prior to establishing Cashlogix planning was done in Silos and de-centralised.
  • A business model change by the Reserve Bank meant that there was additional stock held by the industry.
  • Re-cycling and re-distribution of inventory to meet demand meant increased planning and transportation requirements.
  • Transportation requirements provided by a single supplier.

Transnova's Role

  • Spearheaded the setup and initial operation of Cashlogix as a standalone entity on behalf of the banks.
  • Define the supply chain organisational structure, staff and train all personnel for defined roles.
  • Developed and deployed demand and supply management and execution tools with analytic capabilities.
  • Deployed LeanLogistics TMS platform to improve transportation management and manage costs.
  • Introduced standard rate card and service level agreements with various transportation service providers.
  • Initially introduced on a lane based agreement, with future ability to validate and manage dedicated vehicles.

Client Impact

Goals

  • Minimise industry cost by balancing the cost matrix which includes inventory holding costs, processing costs, transportation and source supply costs.
  • Improve visibility across the cash wholesale network.

Achieved Benefits

  • Network visibility was provided to all relevant parties in the supply chain including the South African Reserve Bank, this included inventory visibility and tracking of key performance indicators related to network costs.
  • Realised a R184m savings in the first year of operation.
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Cash Logix Case Study

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By partnering with Transnova on your logistics optimisation journey, you will be engaging a truly emerging, majority black-owned company that has delivered over R350 million in savings to our clients and will always align to your strategic direction. Our team of supply chain experts would love to discuss your logistics challenges and help develop a custom solution that will enable you to unlock the latent value in your supply chain.

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