To address these challenges, in 2024, BMS sought to implement a best practice cash and liquidity management structure by issuing request for proposals (RFPs), with the focus on the US and Europe. The aim was to create a more efficient and cost-effective structure that would look to enhance control, reduce risk and maximise returns on its cash balances. Treasury partnered with the accounts payable (AP) team to centralise AP operations under one streamlined core process. Treasury led a comprehensive project to consolidate these operations, significantly reducing the number of e-banking portal instances and centralising system administration in the US. The projects were a collaborative effort involving the treasury team, PwC, J.P. Morgan, Citi, Deutsche Bank, BNP Paribas and various internal stakeholders. As a result of the RFP, BMS worked with Citi to implement a single entity multi-currency notional pool (MCNP) in London for its European operations. BMS set up additional currency header accounts and expanded the target balance structure resulting in 20 Citi header accounts with over 80 source accounts. BMS had multiple AP functions in Europe with multiple banking partners due to acquisitions and legacy processes. Additionally, BMS migrated its lockbox activity to one US banking partner reducing bank fees and speeding up access to its cash. The RFP process resulted in reduced cash management fees, harmonised FX spreads across all global banking partners and improved interest rates resulting in annualised savings of approximately US$6m.

“Throughout the RFP process we identified opportunities to reduce our e-banking platforms by centralising the global banking function to treasury and alleviating some of the work the local markets were doing related to bank account administration. We further optimised our already lean banking structure by closing over 60 additional bank accounts. The implementation of our new cash and liquidity management structure has transformed our treasury operations,” explains Sarah Johannesen, Senior Director, Cash Management, Banking and Treasury Operations.

As a result of the RFPs, BMS has enhanced its banking structure, reduced the number of bank accounts, decreased bank fees and obtained more favourable FX spreads on foreign currency payments. Most importantly, the company is now maximising the interest earned on its bank balances, enhancing its overall financial performance. The centralisation of AP has resulted in cost and time savings, along with the ability to close bank accounts. The centralisation of banking administration resulted in a reduction of bank fees by eliminating a large volume of different users and portals. This comprehensive solution has addressed the challenges BMS faced and positioned the company for continued success in managing its cash and liquidity.