Major retail investment in Brazil is enhancing supply chain optimisation

Supply chain operations in Brazil could start to see significant improvements over the next few years, largely due to the relatively recent arrivals of major retailers, such as Amazon.

The country has felt the impact of the major political and economic turmoil in the country, but could be in line for a major boost to its economy.

The prediction has been made by management and supply chain consultancy Crimson & Co, which states that the aggressive expansion strategies of global retailers are forcing local firms to think smarter.

In practice, this accounts for not only how products and materials are moved throughout their business, but also helping firms to understand how an effective supply chain can contribute towards shaping the long-term focus and direction of the business.

Richard Gurney, Crimson & Co’s General Manager for Latin America commented: “Increasingly, we are seeing more and more multi-national retailers, such as Amazon, investing heavily into the region, driven by expectations to replicate the same successes as seen in the likes of North America and Europe.

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“In turn this has acted as a massive wake-up call for how businesses locally manage their supply chain and logistics.

“Traditionally, the supply chain function within local businesses in Latin America are often treated as a cost analysis exercise. In crude terms, it is often looking at how to get products or materials from point A to point B, in the cheapest way possible.

Typically, the persons involved in overseeing this process will likely be a graduate from the production-line with strong ties to manufacturing processes.

“Critically, they often lack the collaboration skills needed to link in other facets of the business such as commercial and skills departments, marketing and R&D, in order to truly maximise supply chain operations within the organisation. Amazon’s arrival has forced a change in this mind-set.”