Sourcing & procurement

Restructuring the procurement function is in many cases a central step in a more encompassing supply chain transformation. A sustainable procurement strategy takes many issues into account. The total cost of ownership, continuity of supplies, strategic partnerships, environmental concerns, reputational risks and ethical issues all play an important role. PwC has developed a solution to establish cost and tax efficient procurement processes that takes all these issues into consideration. With our expertise, we have achieved cost savings of up to 10% of the total value of goods sourced.

Structuring operations and taxes

From a supply chain perspective, the optimum number of transactions is driven not only by an interest in minimising potential supply chain disruptions but also by maximising production and distribution capabilities and accountability across the value chain. We can support organisations in finding the best way to structure the entities who take part in the transfer of goods, the types and number of transactions required, etc. Next to the operational part of procurement, it is essential to take tax efficiency and tax compliance into account when structuring the physical flow of goods and the moment at which the legal title passes. Proper structuring will eliminate inefficiencies in terms of indirect tax compliance and tax cash flows.

After determining the overall structure, PwC can assist in translating the new business model into an aligned organisation structure with new procurement procedures, roles & responsibilities, and changing instructions regarding IT infrastructure.