Switzerland

Tax Efficient Supply Chain Management (TESCM) 

Heroimage TESCM

 

TESCM integrates efficient supply chain design with tax optimization delivering significant increases in profits. It is based on the premise that incorporating tax arbitrage into supply chain structures (typically by optimizing the geographic location of the key supply chain functions, assets and risks) realizes benefits well beyond conventional operational savings on their own.

It is based on the premise that incorporating tax arbitrage into supply chain structures (typically by optimizing the geographic location of the key supply chain functions, assets and risks) realizes benefits well beyond conventional operational savings on their own. TESCM 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.

 

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 worldclass operating model that is flexible and scalable, including the identification of quick wins to help maximize investment return.
 

The essential step ahead

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. We have delivered tax savings (to be added to operational savings) of €100 million a year in our most successful case so far.
 

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.

Reiner Denner

Reiner Denner

Partner, International Corporate Tax, Head of Basel Office

+41 58 249 42 40

Hartwig Hoffmann

Hartwig Hoffmann

Partner, Tax Management Services

+41 58 249 34 99

Supply Chain Management & Procurement

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With the increasing complexity and interconnectedness of the world economy, more adaptable and agile value chains are becoming a critical factor for long-term success.