Enhancing the efficiency of retail cash handling processes at Amsterdam Airport Schiphol

Abstract

During the recent years, electronic payment methods have become more customary and in cases more preferable. Nevertheless, cash remains a popular form of payment due, inter alia, to its ubiquity. Large use of cash is associated with security issues, investment costs, logistics costs of transport and handling cash, personnel costs, and the like. To deal with these issues, many retailers have, to different extents, outsourced cash handling services to CiT companies. Kappe’ and Schiphol Airport Retail (SAR) are two retail groups functioning at a number of locations in Amsterdam Airport Schiphol. They currently outsource part of their cash handling services to ABN-AMRO and GWK-Travelex. This results in a further increase in costs incurred by Kappe’ and SAR. Consequently, enhancing the efficiency of money flow is of significant importance to both corporations. The aim of this research is to develop cash handling processes which can bring about a more efficiency. This is done firstly by conducting a literature review on the reasons behind large costs of cash handling for retailers. Then the current processes of cash handling at Kappe' and SAR are studied to explore their deficiencies. After that, alternatives (e.g. automation, joint cash office, clustering) which can bring about a more efficient cash handling process are proposed and assessed on criteria of interest to the problem owners (Kappe' and SAR). The implementation chapter is done for the selected alternative. In the next stage, the prudence of the selected processes is e-evaluated by using a multi-criteria analysis methodology and also based on the trends in customers’ use of cash in payments. Finally, given the findings of the research, recommendations are provided for future improvement in cash handling processes.