Brazilian retail giant captures more than R$200 million in tax benefits after ILOS consultancy
We carried out a consultancy project for a large company in the retail/e-commerce sector, focused on serving the market throughout Brazil.
With the exemption from ICMS DIFAL charges throughout 2022, there was a need to review service flows to maximize this capture. For some categories, the capture of DIFAL was greater than the increase in freight costs in serving some regions from interstate flows.
ILOS monitored these migrations daily by categorization/CD and the impacts on delivery times resulting from these new flows.
At the end of the year, with the resumption of DIFAL charging, we recommended the ideal network considering the projected demand over a 3-year horizon and the objective of reducing delivery times.
The annual capture of tax benefits throughout 2022 exceeded R$200 million, combined with a 0,4 pp reduction in the freight/GMV indicator.
If you also need to optimize your logistics and tax network, ILOS can help you! Speak to one of our experts.
project type
- Optimization of the logistics network
Segment
- Retail
Annual capture of Tax Benefits greater than
R$200 million in large retail company
Challenge
A large Brazilian retailer wanted to capture the benefits arising from the DIFAL exemption in the country during 2022 and to do so, it needed to review the flows of its logistics network
ILOS solution
Based on scenario simulation, we reviewed the CDs' service flows by product category with the aim of maximizing the capture of tax benefits. At the end of the year, after the resumption of DIFAL charging, ILOS recommended the ideal new network for the company, considering the projected demand for the next 3 years.
Results
- Annual capture of Tax Benefits exceeding R$200 million
- Reduction in the Freight/GMV indicator of 0.40 pp, resulting in freight savings of R$50 million annually
