Search
 

Bronze AHA Winner in Cash Management

All Aboard With Centralized Collections: Amtrak

By staff Writer | Updated on November 01, 2010

The National Railroad Passenger Corp. (Amtrak) reorganized a decentralized collections system in which 215 stations nationwide used local depository accounts, together with coin and currency services, ordered their own banking supplies, sometimes used armored couriers to pick up deposits or sometimes let the station manager drive to a local branch with the deposit. The result was 145 separate accounts at 35 different banks, along with haphazard and usually overpriced use of banking services, bank supplies and couriers.

So treasury sent out a national RFP to banks and selected just two, Wells Fargo/Wachovia and J.P. Morgan. It did the same with courier services and picked one, Garda, then selected Transource/Harland Clarke as its sole provider of bank supplies. Now all 215 stations make their deposits at one of those banks, all but 19 get scheduled armored car pick-ups, and every station gets bank supplies from the chosen provider. Rather than being charged erratic retail rates, Amtrak pays consistent, negotiated wholesale rates for banking, courier services and supplies for a savings of more than $500,000 a year, reports Jeff Carnicelli, assistant treasurer and senior director of treasury operations. It also eliminated the frequent overdrafts or excess idle funds that resulted from the uncertainty as to how much cash was being held in local depository accounts.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.