Clamp Systems manufactures and distributes patented clamps to the major North American automobile manufacturers, OEM (original equipment manufacturers) and parts suppliers. Annual sales are approaching $20 million with 70% - 90% generated in the US and Mexico. There are 125 staff, including 25 regional sales representatives across Canada and the United States.

Issue

Canadian and US Dollar trade payments, plus regular payroll and expense disbursements across North America, result in high cheque volumes and administration costs.

Objective

Reduce accounts payables expenses and maximize cash flow and/ or trade discounts to improve cash position.

Minimize Cheque Issuance Costs
Reduce Number of Cheques Issued by 200 per month @ $6.00 net savings per cheque	$14,400/year

Reduce Working Capital Requirements
Annual Payables	$10 Million
Average Daily Payables	$25,000
Reduction in Working Capital required per day average payables extended	$25,000/year

Solutions

By automating payables processing cheque issuance costs can be significantly reduced. Using Scotia Comprehensive Payables to issue EFT, EDI payments and cheques provides improved payments control and reduced costs. Certainty of EFT and EDI payment delivery enables improved cash flow forecasting for better cash management. Batch processing of many payment items - including future dating of payments - reduces administrative time, eliminates early payments but enables maximum trade discounts or managed payment extensions.

Simply by having Scotiabank issue as few as 200 cheques from an electronic payments file to Canadian and US suppliers could result in savings of as much as $14,400 per year.

Estimate your cheque issuance costs with our Cheque Issuance Cost Model.