During the XXV International Supply Chain Forum, I presented some results of the research Last Mile Challenges in Brazil, developed by ILOS in 2019.
The study showed that Brazilian companies face many operational problems, especially because the country's cities have not prepared for the large increase in cargo movement in urban centers.
Data show that 86% of the Brazilian population is concentrated in 1% of the national territory(1), and that there are urban areas scattered throughout the vast Brazilian territory. This urbanization rate has been increasing over the years, at the same time that the number of smaller and more fractional orders has also increased (due to the growth of e-commerce and the reduction in the size of physical stores).
This scenario makes deliveries in Brazilian cities very complex, especially in larger ones, such as São Paulo and Rio de Janeiro.
Questioned about the main challenges they currently face in urban distribution, the largest cargo shipping companies in the country pointed out that the unavailability of parking spaces for cargo vehicles and congested traffic are the major problems.
No wonder, the two largest Brazilian cities are among the ten most congested in the world, according to the INRIX(2) ranking. São Paulo is the 5th worst in transit, and Rio de Janeiro is the 7th.
Source: http://inrix.com/scorecard/# (ILOS reviews)
In turn, the availability of vacancies is very small in Brazilian cities compared to more developed countries. The latest survey on urban planning carried out by the Inter-American Development Bank (IDB) showed that the number of loading/unloading spaces in Paris is 1 every 100 meters. Brazil is very far from having that amount.
The solutions for the unavailability of vacancies and the reduction of congestion involve the development of Urban Mobility Plans by the municipalities. However, only 10% of Brazilian cities have an approved plan, and even those that do, this plan does not always consider the variables necessary to better structure cargo handling.
In general, municipalities impose restrictions and offer few solutions and facilities. Talyta Abichabki warned in her post that restrictions on freight vehicles in municipalities are many and non-standard, creating even more complexity for companies that need to distribute products in urban centers.
It is up to governments, as well as private companies, to work to better structure urban distribution solutions in cities. The possibilities are many and new ideas and alternatives are emerging at every moment, from the definition of regulations to the implementation of technologies, vehicles, equipment, urban DCs...
ILOS specializes in structuring logistics solutions for companies, and has been helping countless companies to gain productivity and innovate their Supply Chain.
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Updated on 10/02/2020 – The full text of the Last Mile Challenges in Brazil survey, as well as new analyzes on the subject, can be found at ILOS Report “Urban Last Mile Challenges and Solutions”.
1. Source: IBGE and Embrapa
2. Source: http://inrix.com/scorecard/#
Maria Fernanda Hijjar
https://ilos.com.brExecutive Partner of ILOS, holds a master's degree and a degree in Production Engineering from the Federal University of Rio de Janeiro (UFRJ). With more than 10 years of experience in the field of Logistics and Supply Chain, working on several projects, management and participation in research associated with the subject. She has more than 20 articles in newspapers, magazines, periodicals and congress annals, being co-author of several titles in the COPPEAD Collection by Atlas publishing house and in the Panorama Logístico Collection ILOS and CEL / COPPEAD.
