Learn how leveraging strategic shoring can improve financial and operational performance through tax and trade planning.
Consider the tax implications of strategic shoring
Leveraging strategic shoring can offset significant investments and can have a major impact on profit and cash flow.
Strategic shoring, the shift in a supply chain's geographic footprint to encompass more countries closer to the US, Latin America, and Canada, can offer significant financial and operational benefits for companies seeking to bring their supply chains closer to home.
Our research reveals that tax and trade planning is a central consideration for companies considering strategic shoring. In a recent KPMG survey of 250 US executives, over half of the companies surveyed cite regulators and tax officials as significant influences on strategic shoring decisions, second only to shareholders1. Nearly two-thirds of companies consider indirect taxes, government grants and incentives, and transfer pricing rules at the outset of their strategic shoring decisions.
We recommend that companies adopt a "tax-first mindset" by integrating tax considerations into strategic decision-making to optimize their financial and operational performance.
The complexity and evolving nature of global supply chains leave little room for complacency where tax is involved.
Delve deeper into strategic shoring by getting closer to what makes it a viable strategy for supply chains.
At KPMG, we believe managing tax effectively means more than just complying with regulations. We can help you meet new challenges by offering experienced professionals, informed insights, and advanced technology to help make the tax function an integral part of your overall strategy. We bring deep tax experience, industry focus, and advanced technology to deliver results today and opportunities tomorrow.
The trade environment is constantly evolving, and keeping up regulatory changes, compliance requirements, and duty spend can be daunting. KPMG can help you close gaps and navigate complex situations with a range of services that help to address tax regulation, technology, and resourcing pain points.
When clients are faced with evolving customer behaviors, new and unexpected technologies, and shifting regulatory and tax policies, our multidisciplinary service can help create and preserve value through integrated tax and operational efficiencies.
As companies grow in complexity and across jurisdictions, transfer pricing challenges increase exponentially. We can help you navigate the complex transfer pricing tax landscape, and plan with confidence to prepare and respond to evolving tax laws, regulations, and economic pricing.
Strategic shoring is a major decision that requires careful planning, detailed analysis, and leveraging technology like AI, machine learning, and digital twins. Rely on KPMG Supply Chain Services for your strategic shoring move. Our proximity planning solutions are tailored to your needs, from supplier selection to tax guidance on prospective locations. Together, we can make the difference wherever you relocate your supply chain operations.
Sign up to receive newsletters on KPMG's latest research, analysis, news and events to help operations executives innovate.
We look forward to understanding how we can best support you.
