Gartner Research

Optimize Your Supply Chain for Tax Efficiency to Support Growth and Manage Cost

Published: 19 October 2017

ID: G00300068

Analyst(s): Kamala Raman

Summary

Taxes and duties make up a significant element of total supply chain costs. Yet, few companies incorporate tax implications while designing supply chain network models. Supply chain leaders should use this research in optimizing the after-tax profits for the entire supply chain.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Incorporate Tax and Duty Rates in Network Optimization Models, Using Input From Trade Compliance and Finance
  • Optimize the Footprint for Total Supply Chain Costs, Including Taxes and Duties and Use Scenario Planning to Test Validity of the Solution
    • Including Duties and Taxes in Optimization Can Change Network Capacity Allocation
    • Customer-Location-Based Optimization
    • Logistics Cost Optimization in Brazil Given Changes in Tax Rates
  • Create a Reusable Design Process That Frames Scenarios for Analysis as Ground Realities Evolve Around the World

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