Tax : efficient supply chain management

Abstract

Supply chain management is a becoming increasingly important in today’s globalized markets. For manufacturing industry, the performance of industrial players is no longer determined solely by the characteristics of their products but lies on the effectiveness of the whole supply chain management. The measurement of supply chain efficiency can be based on several different metrics. In most cases, managing the trade-offs between costs and customer service level is the most common measure. Despite recent studies on the topic of tax efficient supply chain management, rarely is indirect tax a focus; yet there are huge potential to significantly improve the companies’ supply chain efficiency by combing indirect tax and supply chain management, especially the distribution network design given the nature of indirect tax. This paper aims to analyse the impact of indirect tax in the context of various distribution networks, to identify and prioritize trade-offs basis the existing supply chain management models from a manufacturing supply chain perspective.