Luxembourg

Tax Efficient Supply Chain Management (TESCM) 

TESCM integrates efficient supply chain design with tax optimization delivering significant increases in profits.

 

TESCM is based on the premise that incorporating the tax factor into supply chain structures (typically by optimizing the geographic location of the key supply chain functions, assets and risks) realizes substantial benefits, sometimes well beyond conventional operational savings on their own. TESCM, being a "substance based" approach, is currently especially topical as tax authorities are challenging traditional tax planning structures and products. At the same time, businesses are changing their operating models in response to the economic downturn and globalization challenges.

What's on your mind?

 

  • Do you want to minimize cash, costs and effective tax rates as well as risks across all tax types?
  • Do you need to drive cost reductions and operational efficiency through your supply chain?
  • Do you need to increase efficiency and effectiveness in the sourcing, manufacturing, sales, distribution and asset strategies by achieving structural supply chain change?
  • Is an effective postmerger or -acquisition integration required, or are you expanding into new markets or new channels?
  • Have there been planned and implemented enterprise-wide information systems?

 

Bringing you Peace of Mind

Global Network of TESCM specialists

KPMG offers you not only a global network, but a well-established international team of TESCM specialists who have a proven track record of implementing TESCM structures generating significant and sustaining operational and tax benefits for clients.

 

Integrated business approach

We provide the client with integrated business (including supply chain, organizational design and IT systems impact) and tax knowledge and insight that can help enable a bespoke and world class operating model that is flexible and scalable, including the identification of quick wins to help maximize investment return.

 

The essential step ahead

TESCM looks into the full Value Chain of a business. It is the integration of tax planning into business and value chain restructurings that may involve the relocation of assets, functions and risks across jurisdictions. Our focus is on assisting companies with larger-scale restructurings that require the skill sets from multiple service lines in Advisory and Tax. By providing tailored TESCM strategies to multinational groups, we remain at the forefront of technical development and thought leadership, having managed and delivered TESCM structures on a global basis for some of the world's largest and most complex multinational groups. In our projects we deliver tax savings in addition to the operational savings.

 

What's in it for you?

  • Increased profit after tax and therefore shareholder return above the line 
  • Improved supply chain management accessed through the creation of centrally controlled strategic and tactical operations
  • An ability to leverage procurement scale 
  • Improved tax risk management
  • Simplification of intra-group transactions
  • Best in class IP management
  • Improved paybacks for large scale supply chain and IT projects

Why KPMG?

KPMG takes an integrated approach, using its global network of Tax and Advisory specialists, with thorough knowledge and experience in working on TESCM projects together.

 

  • Our experience enables us to understand the practical issues faced by clients during a TESCM project, ensuring both local and cross border tax issues are properly addressed.
  • Our references speak for themselves: Numerous multinational clients saved significant sums due to our engagement.

Get in touch with KPMG

Contact

Philippe Neefs

Transfer Pricing Leader

Tel. +352 22 51 51 - 5531

philippe.neefs@kpmg.lu

 

Sophie Boulanger

Senior Tax Adviser

Tel. +352 22 51 51 - 5423

sophie.boulanger@kpmg.lu