FROM PHYSICAL DISTRIBUTION TO SUPPLY CHAIN ​​MANAGEMENT: THINKING, TEACHING AND TRAINING NEEDS IN LOGISTICS

The concept of Supply Chain Management has aroused notable interest among members of the academic and business worlds, representing an important evolution of what has traditionally been known as Logistics.

When competition was less, product cycles were longer and uncertainty was more manageable, it made sense to pursue business excellence through the efficient management of isolated activities such as Purchasing, Transport, Warehousing, Manufacturing, Material Handling and Distribution. These functions were performed by specialists, whose performance was measured by indicators such as lower transport costs, lower inventories and purchases at the lowest price.

Today, markets are increasingly globalized and dynamic and customers are increasingly demanding. To satisfy them, product lines and models proliferate more and more, with much shorter life cycles. And the coordination of materials management, production and distribution began to provide more effective responses to the excellence objectives that the business demanded. Then came the concept of Integrated Logistics. This meant considering as elements or components of a system all the movement and storage activities that facilitate the flow of products from the point of acquisition of materials to the point of final consumption, as well as the information flows that manage products in motion.

The concept of Supply Chain Management emerged as a natural evolution of the concept of Integrated Logistics. While Integrated Logistics represents an internal integration of activities, Supply Chain Management represents its external integration, as it extends the coordination of material and information flows to suppliers and the final customer. Chain management as a whole can provide a series of ways in which it is possible to increase productivity and, as a result, significantly contribute to cost reduction, as well as identify ways to add value to products. In the foreground would be the reduction of stocks, more advantageous purchases, the rationalization of transport, the elimination of waste, etc. Value, on the other hand, would be created through reliable deadlines, response in case of emergencies, ease of placing orders, after-sales service, etc.

This takes us back to the evolution of logistical thinking. At every moment, the practice of logistics reflects and at the same time feeds logistical thinking, in a creative interaction between academia and business. And what is logistical thinking? These are the concepts and theories that guide the study and research in Logistics, influencing what is considered relevant and justifying the proposed solutions for logistical problems. In general terms, the field of Logistics has evolved from a more restricted treatment, focused on the physical distribution of materials and goods, to a broader scope, in which the supply chain as a whole is considered and the activities of purchasing, management of materials and distribution. Thus, it is not limited to a single function among those studied in Administration, such as Marketing or Operations, but represents, in fact, an area of ​​integration of these different approaches.

In a recent survey carried out with the greatest authorities in Logistics at American universities, professors John L. Kent Jr. and Daniel J.Flint studied the evolution of thought in the area and identified five main eras or stages.

The first era, called “from the field to the market”, had its beginning at the turn of the XNUMXth century, with the agrarian economy being its main theoretical influence. The main concern, in this case, was with transport issues for the disposal of agricultural production.

Labeled “segmented functions”, the second era, stretching from the 1940s to the early 60s, is heavily influenced by the military. It is not by chance that the term “logistics” itself has roots in the movement and guarantee of supplies for troops in wars. storage and transport, treated separately in the context of the distribution of goods.

The third era, called “integrated functions”, goes from the beginning of the 60's to the first years of the 70's. As its name indicates, it is the beginning of an integrated vision in logistical matters, exploring total cost and systems approach. For the first time, the focus is no longer on physical distribution to encompass a broader spectrum of functions, under the influence of the industrial economy. It is interesting to observe that it is in this period that one witnesses the emergence, both in teaching and in the practice of logistics, of a consolidated management of the activities of transporting supplies and distribution, warehousing, inventory control and material handling.

The next era, stretching from the early 70s to the mid-80s, corresponds to “customer focus”, with an emphasis on applying quantitative methods to logistical issues. Its main focus is productivity and inventory costs. It is exactly in this period that an intensification of interest in teaching and researching Logistics in business schools will be identified.

The fifth era, which runs from the mid-80s to the present, has a strategic emphasis, as indicated by the label assigned to it: “logistics as a differentiating element”. Identified as the last business frontier where new competitive advantages can be explored, this is where the concept of Supply Chain Management arises, whose backdrop is globalization and advances in information technology. This period, in which we find ourselves, implies a greater concern with interfaces, within companies, between different functions, in addition to greater emphasis on logistical considerations at the highest level of strategic planning in corporations. Another issue that is gaining relevance nowadays is the inclusion of social responsibility in the design of new logistics systems, such as ecological issues.

The richest aspect of current thinking in logistics is undoubtedly that of Supply Chain Management. It combines the logistical processes, which deal with the flow of materials and information inside and outside the companies, with the relationships that arise along the chain to ensure the best results in terms of reducing waste and adding value. When dealing with relationships between companies, it is natural that logistical thinking addresses a related issue – that of strategic logistical partnerships and alliances. These collaborative strategies promote the joining of forces of companies – customer and supplier, customer and customer or supplier and supplier – in order to explore logistical activities in search of mutual advantages.

Like any new concept, there is not yet a consolidated body of thought in the field of Supply Chain Management. Articles and research by the main authorities in Logistics around the world have their emphasis oriented either by Operations (with an emphasis on quantitative instruments), or by Marketing (with an emphasis on distribution and channels), or by Engineering (with an emphasis on in transport and military matters). But it is worth asking here: if the concept of Supply Chain Management represents a vision of integration between functions and companies, along the chain, shouldn't this be reflected in logistical thinking? It is expected that this will occur, more and more, as more researchers dedicate themselves to the study of Logistics, trained already within the new integrating concepts.

And in the context of this evolution of thought in Logistics, what can be said about teaching in the area? Is it coherent today with the concept of Supply Chain Management? What disciplines should the training in Logistics include to meet the demands that a professional will face in the modern company? The formation of new talents in Logistics, both for practice and for research, involves an adequate emphasis on teaching, already within its most advanced concepts. Recent surveys have shown that the vast majority of top-notch business schools in the United States and Europe already include the concept of Supply Chain Management in the syllabus of their mandatory basic management courses, with an even greater offer of elective courses whose titles contain the terms Supply Chain or Supply Chain Management. In addition, many of these programs already offer an entire concentration area in Logistics and Supply Chain. Going further, schools considered to be leaders in the teaching of Logistics, such as Michigan State University, in the United States, promote a fusion between professors and researchers of Operations and Marketing to create a specific, interdisciplinary area of ​​Supply Chain Management.

In terms of the content of the Logistics courses, the use of automated systems and innovations brought about by advances in information technologies, such as EDI, have been highlighted, which bring time advantages and facilitate the integration of links in the chain, as well as the dissemination of managerial concepts such as JIT, QR, ECR and CRP. In addition to the approach to logistics systems, the new teaching of Logistics places special emphasis on people and their relationship both within companies (and their different areas) and between companies in a supply chain. Another important trend seems to be the more intense use of technologies (such as databases) in the teaching of Logistics, giving trainees the opportunity to participate in simulations of situations such as those they will experience in the reality of the market.

All the most advanced and effective initiatives for teaching Logistics seem to have one characteristic in common: the great interaction with professionals in the area, bringing real-world experience into the classrooms. Thus, thinking, research and practice in Logistics combine to train the new generation of professionals and challenge them to apply what has been proposed and done so far and to develop new and more ingenious solutions to logistical problems.

If this is the situation in advanced countries, what about the situation in Brazil? Nobody ignores that the economic and business environment in our country has undergone immense changes over the last decade. From 1990, the opening of the economy promoted a competitive shock that continued with the deregulation of several sectors and with the privatization of companies and entire industries. The stabilization initiated in 1994, thanks to the Real Plan, and the intensification of regional integration, with the consolidation of MERCOSUR, constitute other changes with profound impacts on companies and the conditions of competitiveness in the Brazilian market. One of the main ones has been an enormous search for modernization and greater efficiency in the area of ​​logistics, which has collided, on the one hand, with deficiencies in infrastructure and, on the other, with the lack of knowledge and training of labor. specialized work.

In general, the teaching of Logistics in Brazil has been lagging behind, especially in relation to what happens in the United States. Two reasons can be pointed out as determinants of this gap.

First, there was a time gap in the adoption of the Supply Chain Management concept. The long period of high environmental turmoil, marked by recession and high inflation rates in the 80s, coincided with the time when the main steps were taken in the evolution of the concept of Logistics abroad. The closure of the economy prior to 1990 isolated it from the increased competition and innovations in information technology which, in more advanced countries, were the main motivators for the adoption of new concepts. One of the prevailing distortions was, for example, that companies could make more money by owning inventories than by depleting them. The reduction of waste, and therefore costs, associated with inventory reduction programs, did not make sense in the eyes of companies concerned with dealing with astronomical inflation rates, which masked any real gains that could be achieved. In addition, customs barriers protected the national producer, reducing the power of the customer, who did not have supply alternatives. Thus, Customer Service was an expression only found in Marketing texts and sounded like pure theory. Another important concept in supply chain coordination, Partnerships between buyers and suppliers, also took a while to arrive and is still controversial and full of controversies in the Brazilian business environment.

The second reason for the lag in the teaching of Logistics in Brazil is in the teaching staff of higher education in Brazil. Teacher training has traditionally been marked by specialization in specific functional areas – Marketing, Production, Information Systems, etc. Attentive to the interest that Logistics started to awaken, they started to include in the programs courses designed with remarkable concentrations in themes that dominate. In this way, it is common to offer disciplines such as Marketing and Customer Service, Purchasing and Inventory, Distribution and Transport, suggesting, by the names, some integration between the elements of the supply chain, but representing, in practice, visions that are still quite functional. And the vast majority of programs still, in fact, include disciplines with a strong functional connotation: they are isolated disciplines in the curricula of the Master's in Business Administration courses or in the undergraduate and graduate courses in Production Engineering, such as Materials Management, Distribution Physics, Services Marketing, Warehouse Layout, Supply Management, Packaging and Inventory Management.

Just as an illustration of the gap in the teaching of Logistics in Brazil, a survey carried out by the COPPEAD Library more or less 6 years ago, among the libraries of the main business schools in the country, found only the subscription of two journals specialized in Logistics and a collection of clearly outdated books. For all these reasons, the concepts of Integrated Logistics and Supply Chain Management took a long time to reach companies and business schools in the country.

The possibility of offering disciplines with content closer to what Supply Chain Management contemplates thus involves expanding the conceptual base of professors. Fortunately, there is a significant increase in the number of seminars and short courses in the country given by North American and European academics and consultants, together with professionals from leading national schools and companies in logistical topics that, through practical cases, expose the experiences of their organizations in dealing with issues involved in adopting the Supply Chain concept.

COPPEAD's Master's Program in Administration, for example, already has a concentration area in Logistics, currently offering six disciplines that constitute an integrated body of knowledge aligned with the concept of Supply Chain. Several master's theses have already been defended by students of the program, and several others are in development, focusing on the most different aspects of Integrated Logistics and Supply Chain Management. The Doctoral Program also has a concentration in Operations and Logistics, in which a thesis has already been defended. In particular, the institution houses the Center for Studies in Logistics, with twelve full-time researchers. Several studies on the Center's own initiative or as a result of partnerships with Brazilian companies have generated logistical knowledge and enriched both the disciplines of the Master's program and the training courses offered to the business community, courses with a growing demand due to the need for updating professional in logistical matters. The Center for Studies in Logistics is the means through which, at COPPEAD, thinking, research and teaching in Logistics combine to reflect and act on the present and future of Logistics in the country.

The new competitive environment and the commercial evolution of Mercosur bring remarkable job opportunities for Brazilian executives in the area of ​​logistics. There are still dozens of barriers to be overcome in the integration process, and one of them is the lack of manpower, both at an operational and managerial level, in Logistics. As companies increase their operational bases in the countries that make up the alliance, they will demand the development and implementation of logistics strategies based on the concept of Supply Chain Management and, obviously, will require professionals capable of implementing them.

Therefore, training in Logistics plays a fundamental role in the creation of this new leader. Its development should be enhanced along three main lines:

• the acquisition of the necessary knowledge to develop logistics as a superior function, in order to be able to exercise it with maximum efficiency, using the necessary techniques and tools in the most appropriate way at all times;
• the understanding of the logistics function with a global and strategic perspective of the company and, therefore, with an integrative and generalist view of its function. This implies the practice of new indicator systems to assess integrated management;
• people management, allowing you to effectively assume a leadership position on your teams, activating the integration and commitment of people. Especially, it is necessary to develop in the leader the ability to stimulate and encourage teamwork and, above all, cross-functional work.

In summary, if training until now had emphasized, by default, specific knowledge of functions with the aim being functional excellence, the objective now faced by training centers is the development of executives with a global and integrative vision and possessing leadership capacity, ahead of employees who, in turn, should be formed in the culture of teamwork and have a general knowledge of the company and the supply chain.

The biggest challenge facing Brazilian schools is thus to follow the evolution in thought and studies in logistics, adapting them to practice in the peculiar conditions of our country.

Authors: Kleber Figueiredo and Rebecca Arkader