Source: Valor Econômico
Companies operating in Brazil face logistics expenses far above the average of their international competitors. In 2025, spending on goods transportation, inventory, warehousing, and the administration of these services will be equivalent to 15,5% of the Gross Domestic Product (GDP), according to a survey by the Institute of Logistics and Supply Chain (Ilos). This is almost double the average spending of countries that make up the Organisation for Economic Co-operation and Development (OECD), which is 8,4% of GDP.
Two factors stand out as the most relevant in the composition of Brazil's high logistics costs. One is the expense of maintaining inventory, which is equivalent to 5,3% of Brazil's GDP. In the United States, the expenditure is much lower, at 1,9% of GDP. "In Brazil, interest rates are high, which increases the financial cost of inventory," says Mauricio Lima, managing partner of Ilos. On the other hand, the lack of adequate transport infrastructure causes companies to maintain high levels of raw material and finished goods inventory. "There is no guarantee that the merchandise will be available when needed. This insecurity leads to the formation of large inventories maintained at a high financial cost."
