Client's background
The client is a prominent American company engaged in the manufacturing, marketing, and distribution of consumer and commercial products, with a substantial market presence in Europe.
The company's diverse product portfolio includes storage containers, home organisation products, outdoor products, writing instruments, children's products, cookware, and fragrance products. With an annual revenue of $9.5B and 28,000 employees, the client sought to consolidate its European statutory compliance under a single point of contact.
The challenge faced by the client was the complexity of multiple languages and varying country requirements, making it impractical to move statutory compliance functions into a traditional Global Business Solution (GBS) environment. They approached MSI's Atlanta based accounting member CKH Group for a solution.
How did MSI Global Alliance provide the solution?
To overcome this challenge and capitalise on the opportunity, CKH Group designed a model that addressed the client's main criteria of cost reduction and centralised point of contact for statutory compliance. The model involved creating 2-3 efficient "back-offices" at CKH Group for transactional activities.
To ensure effective communication and interaction with local authorities, CKH Group capitalised on MSI's extensive global network of member firms and leveraged the expertise and support of over 10 local MSI members.
The European market, comprising around 20 countries, was divided into four geographies to ensure coordinated efforts. Each geography had a dedicated project leader responsible for ensuring cohesive actions and effective coordination throughout the project.
The services provided to the client, primarily through MSI member firms, included:
- Local market presence: Establishing a strong presence in the local markets to gain insights into regional dynamics and ensure effective compliance.
- Interacting with tax authorities and statutory bodies: Facilitating communication and engagement with tax authorities and other relevant statutory bodies to ensure compliance with local regulations.
- Reviewing work and staying updated with local regulations: Collaborating with local MSI firms to review work and stay informed about changes in local regulations, allowing for proactive adaptation to the evolving compliance landscape.
The client expressed great satisfaction with the unique outsourcing model developed by the firm to address their specific needs. This model has been successfully implemented for nine years, surpassing their initial expectations. The Vice President of Global Business Solutions (GBS) commented:
Before the outsourcing, we had 30 accountants in different countries, yet with a negative synergy. The idea of having one team doing transactional statutory work with the help of local “on demand” professionals from MSI provides a lot of benefits for us”
Through the collective strength of CKH Group and over 10 local MSI member firms, the client experienced remarkable cost reductions and achieved a centralised compliance framework. The comprehensive solution delivered by MSI ensured the client's satisfaction and demonstrated the value of leveraging the MSI alliance.
