When a U.S.-based company decided to move some of its people and manufacturing overseas, operations, supply chain issues, and local tax strategies all came into play.
Executives of a global manufacturer of precision technology solutions with locations in 30 countries realized that their business was improperly aligned with the realities of the current global market. Management was looking to optimize its business lines, improve its ability to integrate new acquisitions, and improve its organizational capabilities, with a specific eye on Asia.
Our first step was to set up an “Asia Day,” five hours of workshops for the client featuring advisors from Singapore, China, and the U.S. who discussed overall industry trends and strategies, operating model and supply chain trends, tax efficient strategies, legal entity structures, and shared service migration. The success of the workshop led to an initial high-level three-month engagement to assess the various ways for the client to approach an Asian-centric business transformation from both operational and supply chain tax efficiency perspectives.
The client is on its way to rationalizing its manufacturing footprint and reducing its overhead cost as its strategy to relocate manufacturing and shared services to lower-cost countries closer to its customers comes to fruition.