New software helps optimise tax in the global supply chain

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Businesses can operate at a lower cost by identifying the tax optimal supply chain using new CAST Aurora software, according to Barloworld Supply Chain Software (SCS).

Increased globalisation has resulted in businesses situating different elements of the operation (such as manufacturing and warehousing) across various geographical locations. CAST Aurora supply chain modelling software has been developed by Barloworld SCS to help businesses identify the most cost effective supply chain to transport product around the world.

In parts of the world, for example in Brazil and India, companies moving product from one area to another are required to pay additional tax, based on how the product is moved. CAST Aurora software helps to calculate the payable and recoverable tax, to help a company optimise its supply chain costs.

"One of the main challenges in designing a cost effective supply chain across various countries is the tax differentials from one location to another " says Fraser Ironside, Head of Strategic Modelling at Barloworld SCS. "More businesses are beginning to use CAST Aurora as an advanced software solution capable of considering tax optimisation in order to identify the most cost effective supply chain."

CAST Aurora software has been designed to assist with global supply chain modelling and strategic network design and optimisation.  It is used to identify the optimal supply chain configuration, calculating end-to-end supply chain costs and can facilitate multi-time period network optimisation with mapping, locations and road network databases for any combination of countries. The advanced tax optimisation function is the latest development, helping businesses to identify further cost savings.

"Different tax set ups and trade agreements apply across different countries, so the country the product is imported from can make a noticeable difference to tax costs" adds Fraser. "Unlike other supply chain software products that offer basic tax calculations, CAST Aurora provides advanced functionality to help optimise the balance of payable and recoverable tax."

A global high-tech electrical product manufacturing company has recently used CAST Aurora to help identify its optimal routes to market. With its manufacturing operation based in Asia and the products' final destination in Latin America, the company required a supply chain network design to include the best possible import route.

"In this case, CAST Aurora was used to run scenarios that assessed the import routes from Asia to Latin America via Miami and Mexico, to ultimately identify the lowest total company cost strategy" explains Fraser. "An 8% saving was identified for the company, through identification of the optimal import gateway."

A webinar hosted by Fraser was recently attended by more than 50 leading supply chain professionals for some of the world's largest brands on the subject of "Identifying the tax optimal supply chain using CAST Aurora strategic network design software" which is available to view on the company's website (

Barloworld Supply Chain Software is a leading global supply chain planning company, providing expertise, tools and solutions to help companies optimise their network and inventory performance.

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