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“Identifying opportunities for OPERATIONAL AND FISCAL OPTIMIZATION in your company”

Edson Gissoni and Marcelo Miraglia – Executive Partner and Partner at DMS PARTNERS

A significant number of companies in the manufacturing industry segment do not have an optimized production and distribution chain that allows them to capitalize in the best possible way, better operational and fiscal efficiency in their operations.

The operating models that exist today are often inefficient, generating a negative impact on quality and delays in manufactured products.

In a country with continental dimensions like Brazil, with different tax regimes and different tax benefits and incentives offered by some Federative Units, a careful assessment of potential fiscal/tax opportunities becomes an important factor for the success of companies.

Good operational and fiscal modeling, in addition to providing cost reduction and Quality improvement can become a critical competitive differentiator.

How is the process of identifying operational optimization opportunities and tax opportunities carried out?

By surveying the current operational flows of the various production units, focusing mainly on supply, manufacturing, billing and shipping structures, possible operational inefficiencies and potential opportunities for improvements are identified.

In parallel, the tax benefits currently used and which fiscal and tax assumptions will be used in the study in question are identified.

Considering the previously defined premises, the identification, evaluation and mapping of alternative states and/or regions where the fiscal/tax benefits are potentially greater/better than those currently used are carried out. If it is also of interest, the feasibility of operating in another country (e.g. Paraguay) is assessed.

Together with the client's leadership and based on the information and analysis generated in the previous steps, the best Operating Model and the best Tax Management Strategy to be implemented for the future success of the business and recommendations for its implementation are evaluated and identified.

Optionally, complete management can be offered for the implementation of the activities considered in the new recommended Operating and Fiscal Model.

In which situations should companies conduct a process to identify operational optimization opportunities and tax opportunities?

• When there is a perception that the Operating Model is not efficient, generating loss of quality and delays in the various stages of production and distribution.

• When the production and/or distribution chain is not optimized, generating costs unnecessary and operational and/or fiscal inefficiency.

• When there is poor use or lack of knowledge of potential benefits tax/tax.

• Loss of competitiveness compared to competitors

What are the main benefits of a process for identifying operational and fiscal optimization opportunities?

• Optimization of the company's operating model as a whole generating potential reducing costs and increasing operational efficiency.

• Better use of possible existing tax/tax benefits, generating possible improvements in cash flow and working capital.

• Transformation of fixed costs into variables.

• Optimization and rationalization of spaces in industrial plants and/or bases administrative.

What is the profile of companies that can benefit from this process?

• Companies with manufacturing units that produce products entirely or partially finished, where there is a large movement of materials and products between factories with products still in an intermediate phase, that is, semi-finished and which.

They also depend on certain production processes.

• Manufacturing industry in general.

How can DMS help?

• DMS Partners and its team of senior partners, coming from the most diverse segments of industries and with solid knowledge of operational processes and flows, as well as in the tax area, they have the necessary expertise to identify opportunities of improvements in the customer's operations model in order to provide them with no just better operational efficiency, but also fiscal/tax efficiency.

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