As supply chain organizations maneuver in response to COVID-19 disruption, their assessments have laid bare vulnerabilities building for years. Economic nationalism, steadily accelerating since 2017, has eroded the pillars—tax policy among them—that anchored global supply chain models. In the “good old days,” globalism bestowed the luxury of designing supply chains around low labor costs and reliable transportation. There was little to no thought given to tax and trade consequences, because there were few to speak of for most businesses.
All that has changed, seemingly all at once. As protectionist tax and trade policies during the past few years began to stress supply chain operating models, they were noted with mild concern, but considered containable, like a rising body of water behind a dam. COVID-19 is the break in the dam—making the dangers of economic nationalism painfully visible to all, and sending all parties scrambling for high ground. Many businesses are in crisis mode, as they pivot to meet new customer demands and address short-term liquidity concerns. Supply chain and tax executives have realized they will need to work together closely, to return to former levels of profitability, and strategize for long term survival and resiliency.
Learn this paper about tax optimization as a value preservation imperative and agendas for now and later.
Critical short-term and long-term considerations for supply chain leaders in the wake of COVID-19
