Supply Chain Managers need to Balance the Goals of Tax-Effective supply chain management with the Organization’s Compliance Requirements

Many multinational organizations are embracing tax-effective supply chain management to reduce costs and increase margins. Supply chain managers need to understand the ramifications of their tax-based strategies when it involves the transfer of tangible and intangible goods to their own foreign subsidiaries or parent companies. Reducing taxes is a desirable outcome, but not when it runs afoul of related party transaction regulations.