However, the inherently complex nature of tax laws, particularly in countries such as Brazil, has obstructed many businesses from including taxes and duties in supply chain design practices. With a global average tax rate of around over 20 percent, the ramifications of this could be staggering—millions of dollars a year may be wasted as a result, but there is also potential to leverage tax and duty optimization for lowest total cost and to elevate competitive advantage.

Identifying the impact of taxes and duties in future strategic moves, such as mergers and acquisitions and supply chain capacity planning, can be a vital component in building competitive advantage and global positioning.

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