Commercial rationalisation

Physical delivery of products to customers in the most cost efficient way is a challenge in a world where globalisation, international logistics, trade laws and tax regulations all have to be taken into account. Commercial rationalisation is our integrated solution that focuses on optimising physical flows of goods within the constraints set by a commercial organisation and its customers. Furthermore, commercial rationalisation assists you in the cost efficient structuring of international sales and marketing activities. We have helped clients increase sales by up to 10%, cut taxes by up to 40% and reduce warehousing & transportation costs by up to 50%.

Supply chain network modelling tool

We apply CAST dpm to make the complex calculations necessary to determine the optimal location for warehousing operations. CAST is a proven supply chain network modelling tool that balances out parameters such as transportation costs, warehousing & labour costs, local subsidies, available infrastructure and desired customer service levels. It enables global organisations to minimise supply chain costs and maximise demand fulfilment efficiency.

International taxes

Among the tax issues involved, an increasingly important issue is the international intra-group profit allocation to the participants in the group supply chain. What is the relative importance of demand creation versus demand fulfilment, where do marketing intangibles reside and who are the main market risk bearers? Answering these questions determines to a large extent the effective tax rate associated with the commercial activities. For indirect tax (VAT, customs etc.), we can help you with a correct translation of the physical supply chain model into the ERP system.