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Week 7 Measurements in SC Performance & Influences

Week 7 Measurements in SC Performance & Influences

Q Discuss how regional and local tax strategy regarding property, value-added, inventory and income taxes can influence supply chain.

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Value-added taxes as well as property taxes increase and enhance the overall expenditures of the global organizations by influencing the supply chain to become more and more expensive. This is because in case of value-added taxes, there is the increase or the enhancement of cost of goods from receipt at a facility until the shipment of a particular good is based on the value added while the good remains with the facility for shipment. There could be several reasons for the addition of values (or money) for a particular product in the supply chain.