strategicinsight
Use 3PLs to your advantage
As Brazil becomes an increasingly
important player in global supply
chains, logistics outsourcing is taking
on a bigger role. More than 60 per-
cent of respondents to the BDP
International survey said they were
outsourcing more of their trans-
portation-related functions to third-
party logistics companies (3PLs).
Respondents also said they were rely-
ing more on specialized service
providers to gain better control of
inbound shipments and improve
compliance with import regulations.
active in Brazil, but there are also a number of homegrown competitors. “Brazilian
3PLs tend to be smaller than the companies multinationals typically deal with,”
says Rogers. Some of the better-known
Brazilian 3PLs include Rapidão Cometa,
Grupo Júlio Simões, and Tagma.
The big multinational 3PLs have an
advantage because they can participate in
global contracts for multinational clients
and they hire bilingual staff, Scroggie says.
The local logistics companies may have a
pricing edge, but with the exception of
some of the larger firms, they typically
employ only Portuguese speakers.
Third-party service providers have
already made big inroads into Brazil’s
warehousing market. It’s common to see
large multi-client facilities or warehouses
that are shared by multiple logistics
providers. “A warehouse may have 1 million square feet but five different 3PLs,
each with 200,000 square feet,” Scroggie
reports. Whether a company operates its
own warehouses and DCs or outsources
depends in large part on volume. For
example, French retailer Carrefour outsources its DC operations, while Wal-Mart Stores runs its own facility.
Growth and change
Companies seeking to learn more about
logistics management in Brazil will find
there’s no shortage of resources. They can
choose from a variety of logistics and supply chain conferences, trade shows, and
degree programs, including conferences
and seminars organized by ILOS, which
collaborates with the Council of Supply
Chain Management Professionals. In
addition, IntraLogística, the monthly magazine published by Instituto IMAM, offers
an excellent introduction to warehousing
and material handling trends in Brazil.
But those in the know warn that logistics-related information can have a short shelf
life. The logistics and supply chain scene in
Brazil is growing fast and changing almost
daily. “Brazil has changed dramatically in
the 10 years I’ve been going down there,”
says Rogers. “If your perception of Brazil is
based on what it was a few years ago, you’ll
be wrong. If your perceptions are even two
years old, they’ll be out of date. And if they
are five years old, not much is the same.” ;
