Well-structured companies have logistics as a strategic differential, allowing the improvement of other operations, reducing total costs or even surprising customers. Supply Chain Transformation projects are essential to guarantee this competitiveness by redesigning processes and improving the flow of products, services and information between suppliers, distributors and customers.

ILOS has worked with more than a third of the Gartner Top 25 Supply Chain companies and knows where the biggest problems in logistics and supply chain are and how to address them.

ILOS's Supply Chain Transformation projects address the most diverse areas of logistics and supply chain, including network redesign, review of storage and transport strategy, reassessment of inventory policies, definition of control indicators and review of the organizational structure, always guided by the company's strategic definitions and the delivery of an implementation plan to the client.  

Some benefits of ILOS Supply Chain Transformation projects:

• Increase in sales
• Elevation of the level of service provided to the customer
• 5% to 15% reduction in logistics costs
• Gain in operational efficiency
• Visibility of investment needs
• Greater supply chain resilience
• Increased market competitiveness

The construction of the logistics network is one of the main challenges faced by companies today, regardless of the complexity of the market in which it operates. With the growing competitiveness in the market and the need to meet customer demand in an agile manner, it is essential for companies to have efficient and optimized logistics.

Decisions about logistical networks are even more important in times of inflection in demand, such as crises or lack of capacity, in which companies are forced to review their logistical structures and practices.

In Brazil, tax planning is also very important in determining the logistics network. In fact, around 80% of companies define their logistics network considering the tax/fiscal issue, especially in sectors with more complex logistics networks.

The ILOS team has extensive experience in developing logistics network optimization projects, having assisted some of the largest companies in Brazil on their path to transformation, growth and cost reduction.

Based on strategic service definitions discussed with the company's leadership and demand projections for the coming years, ILOS develops and analyzes different logistics network scenarios with the aim of optimizing logistics costs and reducing tax impacts. At the end of the project, a detailed plan is delivered with the sequence of actions for implementing the new network.

To generate these results, ILOS uses cutting-edge software to build optimization models, such as AIMMS and Supply Chain Guru, or even programs developed by ILOS or by customers.

Examples of gains from ILOS projects

• 5% to 15% reduction in logistical and tax costs
• 10 to 20% increase in the average conversion in e-commerce with a 1-day reduction in order delivery
• Reduction of greenhouse gas emissions and more efficient use of natural resources
• Better balancing of ICMS debits and credits generated by the movement of products in the chain
  
  
  Check out the case study:
  “How we saved 10% of food and beverage giant’s operating costs”

Logistic costs represent about 10% of the revenues of Brazilian companies and are impacted by the efficiency of company management and by government actions that affect cargo handling and trade.

This number is even more relevant in times of economic uncertainty, when companies look inward to improve their profit margins. Here, the challenge is to seek opportunities for productivity gains to sustain profitability despite cost pressure.

With experience in the largest companies in Brazil in terms of revenue, the ILOS team of experts has a clinical eye for identifying areas of inefficiency within logistics operations and recommending actions that are being used by other leading organizations in the market.

ILOS uses some of the most advanced operations modeling and data analysis tools to identify the most efficient strategies for reducing logistics costs, so that they are aligned with our clients' strategic planning.

ILOS analyses include transportation, storage, supply, order cycle activities and all other areas with a direct impact on logistics and the recommendations cover operational, tactical and strategic actions.

Examples of gains from ILOS projects

• Up to 10% reduction in logistics costs
• Increased productivity and efficiency in warehousing operations
• Reduction in the number of transfer and distribution trips
• Decrease in the fixed amount in stock

In Brazil, freight transport costs represent, on average, almost 9% of GDP, which is equivalent to 65% of logistics costs in the country.

Investing in cargo transport management is a way for companies to improve their efficiency with suppliers and customers, in addition to reducing logistics costs. For this reason, cargo transport is no longer a purely operational issue and has gained the center of discussions and strategic decisions by cargo shipping companies.

ILOS specialists have extensive experience in developing freight transport strategy projects, whether domestic or international. ILOS seeks to optimize costs and service levels in line with our client's strategic planning.

In ILOS projects, a diagnosis of transport operations (inbound, transfer and distribution) is carried out, recommending the best form of contracting, use of modes and ideal level of outsourcing. In addition, opportunities for improving route-by-route negotiations with carriers are identified using a robust methodology for calculating transport should costs developed by ILOS.

Even though the project is guided by the company's strategic objectives, ILOS recommendations reach the operational sphere, with recommendations on the ideal vehicle per route, onus and bonus policy and ideal monitoring indicators, for example.

Examples of gains from ILOS projects

• Up to 50% reduction in total transport costs
• Up to 50% reduction on spot travel
• Reduction in the need for own fleet
• Increase of up to 10% in the adherence of contracted carriers
• Reduction of waiting times and consequent increase in fleet productivity
• Increased customer service level by reducing delivery time

Check out the case study:

“How we saved more than R$260 million annually for a construction materials multinational”

Demand planning has been gaining prominence with the increase in business complexity. Among the aspects that have made operations more challenging are the diversification of the product portfolio, the expansion of customer contact channels and increased competition.

Effective demand planning can contribute to more reliable revenue forecasts, alignment of inventory levels with peaks and valleys, and better returns for a given product or channel. Good planning significantly reduces operations costs by anticipating product flows and balancing resources.

Based on ILOS' experience gained through participation in the demand planning process of some of the largest companies in Brazil, ILOS organizes and supports the implementation of clients' S&OP and S&OE processes, allowing greater integration between business areas, with consequent improvements in costs and service levels.

At ILOS we evaluate activities, performance indicators, responsibilities and support tools to ensure full alignment of tactical and operational plans and their proper execution.

Using advanced data analysis tools, the ILOS technical team delivers a plan capable of minimizing uncertainty in your company and supports the client's team in the process of implementing and maturing the new process.

Examples of gains from ILOS projects:

• Increased sales forecast accuracy, with reductions of up to 40% in annual forecast error
• Reduction of stockouts and consequent increase in product availability
• Reduction of extra storage costs and emergency freight costs
• Better use of the company's productive resources

The mismatch between customer demand and the ability to meet it is one of the main reasons that lead companies to build up inventories. If, on the one hand, the possession of a stock guarantees service availability, maximization of the use of transport assets and protection in cases of lack of production capacity, on the other hand, it entails idle capital, the need for storage expenses and losses due to obsolescence and perishability.

Thus, it is essential that the company manages its inventory in order to guarantee the level of service that the organization wants to offer without incurring excessive costs.

The ILOS team has extensive experience in projects to define or review inventory policies in the most diverse sectors of the economy, such as Oil & Gas, Energy, Lubricants, Food and Beverages and Hygiene and Beauty.

In addition to determining the ideal stock policy to be adopted for each company product, ILOS calculates the ideal stock levels that should be maintained and assists the client in parameterizing their systems, ensuring the continuity of the supply process with excellence.

ILOS uses advanced technology to perform analyses of large databases and develops additional tools to assist the client in their decision-making process when ILOS is no longer present in the company.  

Examples of gains from ILOS projects:

• Increase in sales
• Reduction in the level of out-of-stocks
• Reduction of fixed capital in stock
• Better utilization of company storage capacity
• Improved production planning
• Decrease in the amount of inventory lost due to expiration and/or obsolescence

With the increase in quality and service level requirements, an increase in the number of products, concern for the environment and the growth of virtual commerce, storage is no longer just an inevitable cost for the business and has become an opportunity for competitive advantage. .

The current mission of warehousing consists of managing the physical and information flow to add value in the supply chain through savings opportunities for the operation and offering better services to the customer, reflecting the demands for shorter service times, lower tolerance to order picking errors and pressure to reduce inventory levels.

In ILOS projects, flows, layout, structures, systems and handling equipment are analyzed with the aim of optimizing the management of our clients' storage, aiming both at reducing costs and increasing the level of service for the client.

ILOS's experience in operating the largest companies in Brazil and knowledge of the practices of companies that are global benchmarks allows the team to recommend practices aligned with the current market scenario and future trends.

In addition to diagnosing the existing operation, ILOS presents a complete action plan, prioritizing initiatives and investment expectations. ILOS also works to implement the proposed recommendations, guiding the client in resolving issues that arise during the transformation of theory into practice.

Examples of gains from ILOS projects

• Reduction of storage costs
• Reduction of product separation time and consequently an increase in the level of service for the customer
• Gains of up to 20% in operational capacity
• Increased separation productivity
• Reduction of receiving queues
• Optimization of storage space

Reducing costs, improving the level of service, increasing operational efficiency, focusing on the core business and reducing investment in assets are the main reasons why companies choose to outsource some logistics activity.

In Brazil, more than 60% of the logistics costs of large companies are used to pay logistics service providers. Therefore, it is essential to adopt more sophisticated procedures for identifying and selecting operators to reduce the chances of failure and negative impacts on the entire operation.

The ILOS team has extensive experience in structuring and executing the process of selecting logistics operators, whether those focused on transportation and/or storage and shipping of products. ILOS has already assisted companies in the retail, consumer goods, oil and gas, pharmaceutical, fashion and other sectors in selecting logistics operators for their operations.

ILOS's care begins with understanding the needs of customers and goes through the entire implementation and management of the RFI and RFQ processes to ensure that the selected company meets all requirements. ILOS also works to equalize proposals and align doubts with participating suppliers, ensuring clarity and standardization of the process.

Examples of gains from ILOS projects

• Reduction of logistical costs
• Increase in the level of service provided to the customer
• Suppliers aligned with the company's strategic objectives
• Greater security and resilience in logistics operations

The strong competitiveness between companies and the level of consumer demand have increasingly demanded a high level of customer service from companies. Knowing the service expected and practiced by competitors and identifying opportunities for improvement and adaptation of their own performance levels is an important differential for companies that want to grow in the market.

Recognizing and responding to customer needs is increasingly important to thriving supply chains. But not at any cost. As well as delivering a high-value customer experience, profitability is also an important success factor.

In its projects, ILOS supports companies in the challenge of defining the best product distribution strategy for different service channels. In addition to segmenting customers based on their characteristics and service expectations to ensure better service and resource allocation, ILOS calculates the relative profitability of serving each customer.

ILOS develops and delivers tools to the client that can help them price products and services, considering the calculation of the cost of serving each client.

Examples of gains from ILOS projects

• Service more in line with customer expectations
• Increased company profitability
• Reduction of logistical costs
• Increased operational efficiency

The Purchasing and Supplies sector is responsible for the acquisition of inputs in most companies in Brazil. In general, this sector handles around 60% to 70% of production costs for the acquisition of these inputs.

An efficient sourcing strategy is capable of reducing production costs, increasing the efficiency and quality of production processes, ensuring the continuous supply of raw materials and reducing dependence on a single supplier. In addition, careful selection of suppliers can contribute to mitigating risks and uncertainties in the supply chain.

Using proven market methodologies, ILOS defines the strategies and actions to be adopted with suppliers of each product segment, considering their importance, cost and criticality of the items involved.

ILOS also assists companies by recommending process redesigns in the area and evaluating the outsourcing of purchasing activities, considering legal, economic, strategic and operational aspects.

Examples of gains from ILOS projects:

• Reduction of the total costs involved in the acquisition of products
• Increased quality of products and services
• Standardization of processes and activities
• Increased security and resiliency in the supply chain
• Greater flexibility and agility in operation
• Strengthening relationships with key suppliers

Customized market analyzes are important for assessing how your company and its competitors operate in the segment, as well as for prospecting future markets.

Market analyzes guarantee strategic content for making quick and correct decisions, important for achieving better results in an increasingly competitive scenario. In addition, they assist companies in directing their actions and investments.

The ILOS market analysis team is made up of experts with in-depth market knowledge, experience in building and implementing research, as well as a great ability to interpret data and generate insights.

ILOS has a qualified network of contacts, built through courses and projects in the largest companies in Brazil over the last few decades, allowing us to obtain insights from executives from relevant companies in the most diverse sectors.

The analyses are fully customized and developed based on the client's needs. Among the many studies developed over the years, the following stand out:

• Analysis of supply and demand for logistics services
• market projections
• Benchmarking of logistics practices
• Logistics infrastructure analysis
• Sector analysis
• Regional analyzes
• Customer satisfaction surveys