Case studies: OME

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Leading organisations are undergoing OME restructuring programs to optimise value creation in their Asia operations. EY's OME practice helps organisations to realise this value.

Case studies: A global electronic chemicals and materials manufacturer

Our OME services

  • Design and implementation of a principal in the Netherlands with a Hong Kong branch structure managing their Asia operations. The scope included:
    • Initial feasibility to determine case for change
    • Design and implementation of the future state transactions,
      processes, roles and responsibilities for the new operating model
      through collaborative client workshops
    • Establishment of transfer pricing strategies and assistance in advance
      tax rulings and Bilateral Advance Pricing Agreements (APA)
  • Ongoing program management of the OME change program, with multiple workstreams

Positive results

  • Both operational and significant tax savings
  • Full integration of businesses across Asia

Case studies: A global manufacturer of food, home care and personal care products

Our OME services

  • Design and implementation of a Singapore principal with more than 800 personnel. The scope included:
    • Tax and operating model design across all functions
    • Identification of key operational and tax benefits and costs
    • Detailed operational blueprint including global process standardisation
      and harmonisation
    • Assistance in the conversion of manufacturing operations to contract manufacturers and distributors to limited risk distributors

Positive results

  • 40% operational benefits/60% tax benefits
  • Improved buying synergy and customer service

Case studies: A global electronic manufacturing services company

Our OME services

  • Design and implementation of a fully functional global principal hub in Singapore with a value-added service model to address domestic to domestic transactions in key locations. The scope included:
    • Strategic tax and transfer pricing support, including developing
      transfer pricing/APA strategy for Asia
    • Review of activities performed by the Singapore principal to meet
      Subpart F requirements
    • Review of operating structures, design and implementation of the hub

Positive results

  • Leveraged procurement spend
  • Tax incentives in Singapore, strong treaty network and free trade agreement benefits

Case studies: A global engineering solutions company

Our OME services

  • Design and implementation of a regional principal and invoicing entity in Singapore using a sales agency model. The scope included:
    • Centralised key functions including procurement, invoicing and
      demand planning, and harmonisation
    • Reduced transaction flow and costs via entity restructuring, reducing
      duplication of AR/AP
    • Establishment of a sales agency model with appropriate
      documentation, reducing permanent establishment risks

Positive results

  • Both operational and significant tax savings
  • Simplification of operations