Challenge

A Fortune 50 department store’s treasury department was looking to reduce the interest cost on short-term loans that were needed to meet cash flow requirements. They knew that if they could predict the cash that was available to them between armored truck deposits, they could reduce the amount of loans they needed.

Solution

Our team members blended highly confidential (off-line) data concerning the armored car schedule with cash sales transaction (on-line) data to predict short-term daily cash deposits. The treasury department was also able to predict the available cash in the store vaults between pick-ups by the armored cars as well as the cash deposits for the armored car routes. 

Results

After the solution was implemented, the treasury department was able to reduce the amount of short-term loans they needed and consequently reduced their interest expense.

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