RadioShack

RadioShack Corporation Improves Transaction Management with ReconNET

Challenges

RadioShack has approximately 4,200 company-owned stores producing more than 5,000 transactions daily. Reconciliation systems and software were in place, but required 1-14 days for reconciliation as well as involvement from 126 district office locations. Bank account analysis fees were excessive, as a result of maintaining over 5,000 separate accounts.

Objectives

Based on the above challenges, senior management identified two areas requiring improvement:

• Streamline and simplify the daily reconciliation process by reducing manual effort and enhancing automated processes. This would allow centralization of the process and minimize district office involvement.
• Improve cash management by reducing the 5,000 bank accounts through consolidation.

Capabilities Provided

RadioShack selected ReconNET as their software solution for daily deposit verification and month-end reconciliation. They have since added disbursement, payroll and accounts payable reconciliation modules.

Proven Results

• Annual staffing costs have been reduced by $4 million.
• District personnel involvement in the process declined significantly.
• Efficiency improved by 90% by reducing reconciliation from two weeks to one day.
• By consolidating the reconciliation process, headcount for the entire company reconciliation effort was reduced by 75%.
• Approximately $1 million per year in reduced banking fees were realized almost immediately through bank account consolidations from 5,000 to 46.
• Another $100,000 was saved in postage fees in the first year by eliminating the need for deposit slips to be mailed to district offices.

To find out how you too can reduce costs, improve efficiency and gain insight into your banking relationships with ReconNET, contact Trintech today.

Published Friday, January 19th, 2007 at 3:22 pm and filed under ReconNET, Retail Specialty, Success Story Library.