Tax aligned global supply chains

Abstract

Purpose – Both logisticians and tax lawyers design global supply chains – but based on different logics. If they do not align each other's perspectives, problems might occur in different areas. The purpose of this paper is to illustrate the impact the tax system could have on supply chain design, reflect (from both perspectives) on how the rules function, and propose a common communication platform for supply chain issues and tax issues.Design/methodology/approach – This interdisciplinary research is based on a systems approach, combining logistics system descriptions (based on interviews, workshops and company data) with legal analysis. Main principles of the tax system were applied to the system descriptions (the principle approach).Findings – Logistics and tax systems interact. Issues of implementing drop shipment in different global contexts are shown. One issue is cross‐border rerouting leading to unnecessary environmental impact. Hence interaction between the domains should be improved before starti...