Value Chain Transformation

In today’s global economic environment companies are increasingly looking at their business models and actively revisiting their operational structures, processes, geographic footprint, and are realigning operations with their core competencies and growth expectations. Such evaluation is quickly becoming an essential first step in a process that seeks to align business strategy with operational models to stay ahead of the competition, increase shareholder value and bolster cash flow.

However, many multinational corporations (MNCs) are operating with tax structures that are not aligned with international business objectives and functions, resulting in tax inefficiencies. Given the impact of tax costs on corporate earnings, MNCs need to continually reevaluate their tax structure in light of operational or structural changes.

Value Chain Transformation

Implementing infrastructure processes and systems that improve your competitive profile can be a major challenge—especially when so many parameters, from technology to labor mobility to legislation, vary across jurisdictions. Value Chain Transformation (VCT) is designed to help MNCs transform the way they do business every step of the way, from initial strategy through final delivery, in a tax-advantaged manner.

VCT gathers together PwC’s deep experience in supply chain management, shared services and human resources with tax services in areas such as transfer pricing, commissionaire and agency structures, VAT and customs duties, to create an integrated best practices model for your value chain. The VCT team has experience in the implementation of centralized models that are designed to streamline operations, designate regional or global hubs, improve IP planning, establish shared services centers, manage post-merger integration and harmoninzation, and implement ERP and other operational systems.

To have a deeper discussion on how we can assist with any Phase of the VCT process, please contact the PwC’s Value Chain Transformation professionals to learn more.