Are the companies' international guidelines adequate for Brazil?

From time to time, ILOS is sought after to help multinational companies explain how the Brazilian transport contracting market works. This happens with some frequency because some multinational companies are oriented to apply here the same hiring standard that they have in their countries of origin.

Following international guidelines means, in general, higher safety, quality and risk management requirements than the average in the Brazilian market. Example of requirements: minimum fleet age of less than 5 years, minimum experience of 5 years for drivers, truck washing at each refueling, annual safety training given by a specialized consultancy, prior audit of possible candidates for logistics partners, among others .

The problem is that having all these guidelines replicated here generates a higher shipping cost and a smaller number of players capable of providing this service.

With higher transport costs, the need arises to explain why this is the case in Brazil.

At this time, knowing how the Brazilian market behaves and having a benchmarking with the main players in operation can help demonstrate why this has been happening.

The first step is to have knowledge about how the Brazilian market for logistics service providers is doing. Understand if the moment is of greater demand or supply or how the margin of transporters is doing. Mapping who are the strongest carriers in their segment and who they work for, in addition to mapping which carriers meet your company's requirements.

The second step is more difficult, but not impossible. It is a benchmarking with the main competitors to find out if they all follow the same guidelines when hiring and to understand how different strategies may be impacting the cost of transport.

With this information, it is possible to understand your company's position vis-à-vis the competition and identify which of the required guidelines are having the most impact on logistical costs.