Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications
(2022) In International Journal of Logistics 25(7). p.1067-1090- Abstract
- Multinational corporations (MNCs) are moving not only their headquarters but also their logistics operations to low-tax jurisdictions to minimise the tax burden. However, the logistics andfiscal domains are guided by different principles. This study aims to explore the cross-country implications of locating facilities in low-tax jurisdictions to takeadvantage of tax arbitrage. A single case study is developed, considering a fashion MNC that moved its European warehouse fromItaly to Switzerland. The study offers theoretical insights about cross-country logistics network reconfiguration, formalising three possible scenarios and deepening the related implications. A quantitative evaluation of those scenarios is proposed,... (More)
- Multinational corporations (MNCs) are moving not only their headquarters but also their logistics operations to low-tax jurisdictions to minimise the tax burden. However, the logistics andfiscal domains are guided by different principles. This study aims to explore the cross-country implications of locating facilities in low-tax jurisdictions to takeadvantage of tax arbitrage. A single case study is developed, considering a fashion MNC that moved its European warehouse fromItaly to Switzerland. The study offers theoretical insights about cross-country logistics network reconfiguration, formalising three possible scenarios and deepening the related implications. A quantitative evaluation of those scenarios is proposed, updating logistics cost items by including fiscal specifics and exploring the mutual interdependence between logistics and fiscal elements. To improve the study’s managerial contribution,the influence of contextual parameters is also investigated, showing that facility location for tax purposes does not necessarily lead to maximise net income after taxes. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/b7b0d1d9-7c2e-453e-9622-d555ac75244b
- author
- Prataviera, Lorenzo Bruno ; Norrman, Andreas LU and Melacini, Marco
- organization
- publishing date
- 2022
- type
- Contribution to journal
- publication status
- published
- subject
- keywords
- Global distribution networkdesign, duties, bondedwarehouse, after-tax profits, facility location
- in
- International Journal of Logistics
- volume
- 25
- issue
- 7
- pages
- 1067 - 1090
- publisher
- Taylor & Francis
- external identifiers
-
- scopus:85098555294
- ISSN
- 1367-5567
- DOI
- 10.1080/13675567.2020.1869192
- language
- English
- LU publication?
- yes
- id
- b7b0d1d9-7c2e-453e-9622-d555ac75244b
- date added to LUP
- 2021-01-13 12:28:28
- date last changed
- 2023-03-07 19:34:53
@article{b7b0d1d9-7c2e-453e-9622-d555ac75244b,
abstract = {{Multinational corporations (MNCs) are moving not only their headquarters but also their logistics operations to low-tax jurisdictions to minimise the tax burden. However, the logistics andfiscal domains are guided by different principles. This study aims to explore the cross-country implications of locating facilities in low-tax jurisdictions to takeadvantage of tax arbitrage. A single case study is developed, considering a fashion MNC that moved its European warehouse fromItaly to Switzerland. The study offers theoretical insights about cross-country logistics network reconfiguration, formalising three possible scenarios and deepening the related implications. A quantitative evaluation of those scenarios is proposed, updating logistics cost items by including fiscal specifics and exploring the mutual interdependence between logistics and fiscal elements. To improve the study’s managerial contribution,the influence of contextual parameters is also investigated, showing that facility location for tax purposes does not necessarily lead to maximise net income after taxes.}},
author = {{Prataviera, Lorenzo Bruno and Norrman, Andreas and Melacini, Marco}},
issn = {{1367-5567}},
keywords = {{Global distribution networkdesign; duties; bondedwarehouse; after-tax profits; facility location}},
language = {{eng}},
number = {{7}},
pages = {{1067--1090}},
publisher = {{Taylor & Francis}},
series = {{International Journal of Logistics}},
title = {{Global distribution network design: exploration of facility location driven by tax considerations and related cross-country implications}},
url = {{http://dx.doi.org/10.1080/13675567.2020.1869192}},
doi = {{10.1080/13675567.2020.1869192}},
volume = {{25}},
year = {{2022}},
}