To get full visibility into the cash of its businesses—1,500 ad agencies worldwide—$12.5 billion Omnicom Group was bumping into limits. As recently as 2009, it had 3,600 accounts in 150 banks on six continents. Then treasury took steps to concentrate and mobilize more than 90% of non-restricted cash daily by using pools and sweeps. The company also centralized much of its cash management activity in a regional in-house banking structure that provided real-time visibility into all the included accounts. But balances in accounts outside that structure were revealed only at month-end.
“Without knowing those balances, we could not fully optimize our allocation of liquidity or quantify all our risk,” says Conor Leyden, project lead and managing director in Omnicom’s Dublin treasury center.