by Adolfo Jimenez, Manager - International Finance, Treasury, Campbell Soup Company
Campbell Soup Company has outsourced its day-to-day European treasury and cash management activities to an external provider for a number of years. Prompted by a change in our European cash management bank, we took the decision to review our outsourcing arrangements, resulting in a change of provider.
European cash management bank
Although we use local banks in each country, we have had a pooling structure in place for the past seven years, working with an overlay bank to centralise cash derived from the company’s European operations into accounts in London and Belgium, where the European shared service centre is located. While this arrangement has served us reasonably well, the costs of an overlay structure, on top of local banking fees, were becoming prohibitive and we decided to pursue a more efficient European cash management structure.
We had the ability to access our data directly via the web which gave far greater visibility then we had had in the past.
Our overlay bank also provided treasury outsourcing services to manage Campbell’s European treasury and cash management activities. Our original intention was to retain the bank’s services for treasury outsourcing but issue a request for proposal (RFP) for European cash pooling. We sent the RFP to four banks and having reviewed the alternative solutions and pricing, we decided to select a new European cash management bank.