News: New software helps optimise tax in the global supply chain
Businesses can operate at a lower cost by identifying
the tax optimal supply chain using new CAST Aurora software,
according to Barloworld Supply Chain Software (SCS).
Increased globalisation has resulted in businesses situating
different elements of the operation (such as manufacturing and
warehousing) across various geographical locations. CAST Aurora
supply chain modelling software has been developed by Barloworld SCS to help
businesses identify the most cost effective supply chain to
transport product around the world.
In parts of the world, for example in Brazil and India,
companies moving product from one area to another are required to
pay additional tax, based on how the product is moved.
CAST Aurora software helps to calculate the payable and
recoverable tax, to help a company optimise its supply chain
costs.
"One of the main challenges in designing a cost effective supply
chain across various countries is the tax differentials from one
location to another " says Fraser Ironside, Head of Strategic
Modelling at Barloworld SCS. "More businesses are beginning to use
CAST Aurora as an advanced software solution capable of considering
tax optimisation in order to identify the most cost effective
supply chain."
CAST Aurora software has been designed to assist with global
supply chain modelling and strategic network design and
optimisation. It is used to identify the optimal supply chain
configuration, calculating end-to-end supply chain costs and can
facilitate multi-time period network optimisation with mapping,
locations and road network databases for any combination of
countries. The advanced tax optimisation function is the latest
development, helping businesses to identify further cost
savings.
"Different tax set ups and trade agreements apply across
different countries, so the country the product is imported from
can make a noticeable difference to tax costs" adds Fraser. "Unlike
other supply chain software products that offer basic tax
calculations, CAST Aurora provides advanced functionality to help
optimise the balance of payable and recoverable tax."
A global high-tech electrical product manufacturing company has
recently used CAST Aurora to help identify its optimal routes to
market. With its manufacturing operation based in Asia and the
products' final destination in Latin America, the company required
a supply chain network design to include the best possible import
route.
"In this case, CAST Aurora was used to run scenarios that
assessed the import routes from Asia to Latin America via Miami and
Mexico, to ultimately identify the lowest total company cost
strategy" explains Fraser. "An 8% saving was identified for the
company, through identification of the optimal import gateway."
A webinar hosted by Fraser was recently attended by more than 50
leading supply chain professionals for some of the world's largest
brands on the subject of "
Identifying the tax optimal supply chain using CAST Aurora
strategic network design software" which is available to view
on the company's website (www.barloworldscs.com/home/media/media-archive.aspx).
Barloworld Supply Chain Software is a leading global supply
chain planning company, providing expertise, tools and solutions to
help companies optimise their network and inventory
performance.