ABSTRACT

Bold supply chain initiatives are a proven way of reducing operational costs and increasing profits. But many initiatives fall short of their potential to maximize shareholder value. Organizations should consider viewing their supply chains from a tax-planning perspective. The opportunities are especially robust in the key supply chain activities of procurement, logistics, product life-cycle management and supply chain technology. Tax-Aligned Supply Chain (TASC) is a strategy for improving financial performance and competitiveness. This is achieved through the global optimization of the 'order-through-delivery' process across all the needs and costs of an organization, including tax and treasury. The sales strategy for the finished goods may involve the use of a buy/sell or limited-risk distributor. The management of Intellectual Property (IP) within a TASC strategy generally involves an intangible holding company to hold, develop and maintain valuable IP of the global organization.