Brazilian companies in an intermediate level of logistics development

The general level of logistics development found in Brazilian companies is 65%, which indicates that they have an intermediate level of advancement in their logistics operation. The degree of development varies according to the sector of the economy in which the company is located and is the result of a survey recently carried out by the ILOS, the full text of which is in the Panorama ILOS “Logistics Benchmarking among Large Industries in Brazil”.

Figure - Level of logistics development of Brazilian companies

Source - ILOS

A company's level of specialization in logistics is influenced by characteristics of the segment in which it operates. The large number of SKUs makes companies in the Food, Beverages, Pharmaceuticals and Hygiene, Cleaning and Cosmetics segments tend to invest more in logistics, mainly in activities such as demand planning, storage and inventory management. The dispersion of customers throughout the national territory is another important factor, requiring companies in these sectors to also focus on Transport.

On the other hand, Agribusiness companies work with few items, in large volumes and with fewer delivery points, requiring less complex operations than those in the consumer goods sectors. As a result, Agribusiness companies appear in the study as those that have a lot to develop in logistics. This segment is still greatly affected by the Brazilian deficiency in terms of logistical infrastructure, which sometimes prevents more elaborate logistical solutions, but which would reduce logistical costs.

Based on the classic model proposed by Copacino, the model used by ILOS to identify the degree of logistics development of a company is divided into four levels – Strategic, Structural, Functional and Support/Enabler – which bring together fronts such as Service Strategy, Logistics Network, Transportation, Warehousing, etc. It is based on the premise that, in order to achieve the company's objectives, it is necessary to have an adequate logistics network infrastructure that guarantees compliance with the service strategy outlined by the executives, at the lowest possible cost. This structure will be efficient with the correct execution of structural activities such as storage, transport and inventory management, with the support of enablers, such as an adequate organizational structure, for example.