Transfer pricing for
Lohmann & Rauscher

Customer

Lohmann & Rauscher (L&R) is a leading international developer, manufacturer, and supplier of top-tier medical and hygiene products of the highest quality – ranging from traditional dressings to modern therapeutic and care systems.  With 5,400 employees, 51 group companies and subsidiaries, and more than 130 selected distribution partners, L&R is represented in all major markets worldwide. L&R’s headquarters are located in Rengsdorf (Germany) and Vienna (Austria).

Challenge

Misalignment between business steering and tax-compliant transfer pricing. As the company expanded globally, its TP setup became increasingly complex and difficult to manage. A “one TP per material model” could not simultaneously support operational decision-making and meet OECD tax compliance requirements, leading to inefficiencies, limited transparency, and risks.

Solution

Implementation of an automated standardized TP model. The company introduced a globally standardized transfer pricing model based on TNMM, combined with a clear separation between management and tax perspectives. This was supported by a structured price-setting process and the implementation of the Optravis TP Management Tool, enabling consistent TP methods, a monthly EBIT margin monitoring per segment, improved transparency, and alignment between business steering and tax compliance.

Result

Cash and profitability benefits exceeded expectations. The implementation of the new transfer pricing model and the Optravis TP Management Tool led to significantly improved transparency, efficiency, and tax compliance. The company gained detailed visibility of costs and margins across the supply chains, reduced internal and external effort, and strengthened TP documentation while also enabling better performance management.

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