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

182 Pages·2013·5.14 MB·English

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

Maryam Hashemi Ahmadi

Master Thesis (Public version)

August 2013
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Faculty of Technology, Policy and Management (TPM)
Jaffalaan 5
2628 BX Delft
The Netherlands
www.tbm.tudelft.nl
Schiphol Airport Retail B.V.
Snipweg 7
Snipweg 7
1118 DN Schiphol

The Netherlands
Kappe' International B.V.
Postbus 3065
2130 KB Hoofddorp
The Netherlands

Master: Management of Technology
Title: Enhancing the efficiency of retail cash handling
processes at Amsterdam Airport Schiphol

Author: M. Hashemi Ahmadi
Student Number: 4179927

August 2013
Date:

Graduation Committee:
Chair: Prof. dr. L. Tavasszy (TPM – TLO)
First Supervisor: Drs. R. van Duin (TPM – TLO)
Second Supervisor: Dr. H. Warmelink (TPM-POLG)
Third supervisor: Dr. Ir. S. Meijer (TPM-POLG)
External supervisor: P.J. Rozenberg (Schiphol Airport Retail)

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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 CiTI 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 re-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
possibilities of further improvement in cash handling processes.
Key words: Retailers’ costs of payment, Efficient cash handling processes, Activity-Based Costing,
Cash-in-Transit Company, Cash recycling, and Multi-Criteria Decision Making

I Cash in Transit
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Preface
The report at hand is the result of my graduation research project at Schiphol
Airport Retail (SAR) and Kappe' during the period between February 2013 and July 2013. With this
graduation thesis, I conclude my study in MSc. Management of Technology at Delft University of
Technology, the Netherlands. For the completion of this research, I am indebted to the priceless
guidance of my first supervisor Drs. Ron van Duin. I am as well grateful to Prof. Lorant Tavasszy and
Dr. Sebastiaan Meijer for their valuable feedback. I would also like to express my sincere gratitude to
Ms. Cindy Groothuizen, Mr. Casper Vos, Mr. Peter-Jan Rozenberg, and Mr. Jacques Parson from SAR
and Kappe' for their support and constructive comments.
I shall thank Baris Ozkale, my fellow intern at Schiphol, for having been notably cooperative. I would
also like to express my appreciation to Dr. Jafar Rezaei for his assistance in clarifying the non-familiar
aspects of the methodologies, and Mr. Yashar Araghi for his help with the complications of the
project.
Last but not least, I would like to take this opportunity to express my eternal gratitude to my mother,
father, uncle and brother for their unconditional love and support throughout the years. I am also
greatly thankful to my aunt, Zohreh, her lovely family, and my friends, Houriyeh, Nazpar, Shadi and
Mahtab for all their help and kindness.

Maryam Hashemi Ahmadi
August 2013

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Table of contents
ABSTRACT IV
PREFACE VI
Table of contents VIII
List of tables XII
List of charts XIV
List of figures XV
Glossary XVI
CHAPTER 1: INTRODUCTION
1.1.Research problem 2
1.1.1.Current procedure of cash handling 2
1.1.2.Problem formulation 3
1.2.Research objectives 4
1.3.Research scope 5
1.4.Research questions 5
1.5.Research methodology 7
1.6.Data collection 8
1.7.Research structure 8
Summation 10
CHAPTER 2:CASH PAYMENTS AND COSTS COMPONENTS IN CASH HANDLING PROCESSES
2.1. Popularity of cash 11
2.1.1. Popularity of cash among consumers 13
2.1.2. Acceptance of cash by retailers 13
2.2. Costs of cash payments 13
2.2.1. Consumers' costs of cash 14
2.2.2. Retailers' costs of cash 15
Summation 18
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CHAPTER 3:CURRENT CASH HANDLING PROCEDURES AT KAPPE’ AND SAR
1.1.Payment methods at Schiphol 21
1.2.Financial institutes at Schiphol 21
1.3.Map 21
1.4.Cash handling processes 22
1.4.1.Cash handling at Kappe's stores 22
1.4.1.1.Kappe's old system
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1.4.1.2.Kappe's new system
26
1.4.2.Cash handling at SAR’s stores 29
Summation 33
CHAPTER 4:SOURCES OF COSTS IN CURRENT CASH HANDLING PROCEDURES AT KAPPE'
AND SAR
4.1. Activity-Based Costing 35
4.1.1. Definition 35
4.1.2. Applications of ABC: motivation for choice of methodology 35
4.1.3. Stages of ABC 36
4.1.4. ABC for Kappe' 41
4.1.5. ABC for current system of SAR 41
4.2. Analysis of sources of costs 43
4.2.1. Sources of cost in Kappe's old system 43
4.2.2. Sources of cost in Kappe's new system 44
4.2.3. Sources of cost in SAR's current system 45
4.2.4. Comparison of current systems at Kappe' and SAR 46
4.3. Sensitivity analysis 46
Summation 48
CHAPTER 5:ASSESSMENT CRITERIA, AND BENCHMARKS
5.1. Stakeholder analysis 50
5.2. Assessment criteria 51
5.2.1. Criteria from the perspective of Kappe' and SAR 51
5.2.2. Employee requirements 53
5.2.3. Customer requirements 54
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