Financial institutes, typically banks, that derive funding from the collection of cash deposits, could derive benefit from the research. In addition, companies who act as outsourced suppliers to such institutes, and therefore process cash deposits on behalf of the banks should derive a similar benefit. Notably, some financial institutes outsource their cash management services. The advantages of outsourcing, such as freeing up staff, and getting the organisation to focus on its core activities, has to be weighed against the challenges that it provides. Hines et al. (2000: 17) note that outsourcing often means a heavy reliance on third party for service, the reliance on third parties 7 for the managing of funds, as well as the risk of securing customer confidentiality. Referring to a survey done by Ernst and Young in 1999, Hines et al. (2000: 15) revealed that revenue from cash management had grown from $7 billion in 1993, to $10 billion in 1999. It would thus be hard to overstate the significance of this industry, or the importance of gaining a competitive advantage. This research aims to provide some guideline on how the banks could become more competitive through pricing and service without cross-subsidising their bulk cash processing divisions. Competitiveness, in turn, would be derived by improving productivity through the application and transfer of lean tools from manufacturing and the service industry. Although the lean approach is well established in the manufacturing sector and certain product-service sectors, evidence of lean in pure service environments is very limited (Piercy & Rich, 2009: 59). Cash centres have a unique combination of service and product environments in the sense that: (1) cash is the commodity and (2) the commodity received from customers is in a sense used as raw material to create products like floats, payrolls, and cash for ATMs. This research could therefore contribute to the way management views the suitability of lean production methodologies in the context of a part product and part service environment such as the cash centre.
|Smith, Ryan Erich
|Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences
|South African National ETD Portal
|Thesis, Masters, MBA
|xii, 130 leaves, pdf
|Nelson Mandela Metropolitan University
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