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North America
Procurement is evolving from a transactional function into a strategic driver of enterprise value, with tighter alignment between tax and business strategy playing a critical role, according to an analysis by EY. As companies navigate supply chain volatility, geopolitical risks, cost pressures and rising ESG demands, leading organizations are integrating tax considerations into procurement design from the outset. EY argues that aligning tax, finance and business stakeholders enables companies to build centralized or hybrid procurement models that are more efficient, compliant and resilient. The report outlines several operating models - from decentralized to fully centralized structures - noting that more integrated frameworks can enhance purchasing leverage, improve supplier relationships, strengthen risk management and reduce total cost of ownership. However, procurement transformations must account for tax implications, including transfer pricing, VAT and customs treatment, corporate tax exposure and economic substance requirements.
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