How tax implications affect the supply chain operating model

 Insight 1

Geopolitical affairs are creating pressure to shift production from global to in-region, or even local.

Such changes have important supply chain and tax implications.

 Insight 2

Our experience shows that on average, tax-savvy companies can see a 10% to 20% reduction in duties and improve management of their effective tax rate.

 Insight 3

A tax-efficient, risk-mitigated supply can be a vital differentiator.

Gaining visibility across the entire supply chain is a critical first step.

 Insight 4

Consider new sourcing options and manufacturing footprints that mitigate risk regarding supply chain and tax implications.

Including nearshore or alternative locations.

 Insight 5

A careful evaluation of costs can be accomplished by using supply chain and global trade analytics.

These tools provide a holistic understanding of total landed cost, including customs duties, for product sourcing and manufacturing to serve each market.

 Insight 6

Companies can benefit by incorporating an operating model that manages tax with shared-service supply chain operations.

For instance, operating a principal company in a commercially friendly jurisdiction with efficient transfer pricing between affiliates.

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