The study “Profile of Logistic Operators in Brazil – 2022”, carried out by ABOL (Brazilian Association of Logistics Operators) in partnership with ILOS, presents a relevant mapping of the sector, highlighting its relevance for the Brazilian economy and society, its evolution in the recent years, its challenges and aspirations, in addition to the main investments and strategies, being a reference for all who demand or offer logistics services. The study is complete, not fitting its content in a single post. So my focus will be on the Technology chapter.
The technologies most used by Logistics Operators today are the operations management systems, TMS and WMS, which are essential for transport and storage management. These technologies are also in the investment pipeline for the next two years for most logistics operators. Technological integration with customers and suppliers is also not left behind, 88% of respondents already have technologies for this purpose and 78% will increase their investments on this front, highlighting the tendency of LOs to be better integrated with the chain.
On the other hand, technologies such as Blockchain, Drones, Autonomous Vehicles and Augmented or Virtual Reality are still little used, as they require high investments compared to the expected benefits. However, there are already some Brazilian logistics operators investing in disruptive technologies, leading in terms of innovation.
The matrix below summarizes the current and future technology framework of logistics operators. While the x-axis shows the percentage of respondents who already own the technology today, the y-axis shows the percentage of respondents who will increase their investments in technology by 2024.
Figure 1: Use versus Investment in Technology by the year 2024. Source: Profile of Logistics Operators in Brazil – 2022 – Abol and ILOS.
We call the first quadrant embryonic technologies, which are in the initial phase of implementation in the logistics operators market, as few use them, but most intend to increase their investments in the next two years. These are: Automation, Robotization, Electric Vehicles, Sensing, Internet of Things (IoT) and Data Analytics with Machile Learning and Artificial Intelligence.
In the second quadrant are expanding technologies, those that most already use and still intend to increase investments for improvements, updates or expansion of their use. Here are the already mentioned TMS, WMS, Technological integration with customers and suppliers, in addition to the Control Tower.
No saturated technologies were identified, those already used by the majority, but which no longer intends to invest.
Finally, we have the idealized technologies of the fourth quadrant such as Blockchain, Drones, Autonomous Vehicles and Augmented or Virtual Reality. Their use is still exclusive to a few operators that stand out for their innovation and the forecast is that few will invest in them in the near future, being far from being used on a large scale.
A specific analysis of the LOs that work in e-commerce shows that this sector has been a strong driver of technological development, mainly due to the operational complexity and the high demands of the segment. Technologies such as Sensing (RFID type) and Data Analytics using ML and AI, for example, are already a reality for almost half of the LOs that work in this segment, as they help in processing a large number of orders, increase the speed and assertiveness of the picking, help manage crowdsourcing, among other features. It is also worth mentioning the use of electric vehicles, which are already available, even if on a small scale, by 43% of the LOs that operate in e-commerce.
This scenario of adoption and investments in technologies present in the sector of logistics operators already impacts on the hiring of labor, since 90% of the LOs are increasing the level of requirement of technological knowledge for hiring. And, to overcome the qualification gap in the market, many are investing in training: 94% of operators invested in training in the last year, totaling more than R$400 million in investment in training by the sector.
Another trend is investment in Startups and Logtechs, responsible for developing innovative solutions at high speed: 29% of operators invested last year in these small entrepreneurs as a way to accelerate their innovation.
References:
This article was based on the report called Profile of Logistic Operators 2022, developed by ILOS – Institute of Logistics and Supply Chain and ABOL – Brazilian Association of Logistic Operators). The report was based on the results of the survey applied by ILOS with 117 Logistics Operators operating in the Brazilian market. More information available at https://abolbrasil.org.br/
This article was published in Technology on 30/11/2022
Beatris Huber
https://ilos.com.brManaging Partner of ILOS, Master in Business Administration from COPPEAD/UFRJ with extension at the European Business School – EBS, Germany and Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, he developed company games and online courses and today teaches classes in Data Analysis, Inventory Management, Warehousing Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from different segments, such as Coca -Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consultancy, he carried out projects such as Redefinition of the Logistics Network, Inventory Management, S&OP Process Structuring and Diagnosis of Storage and Transport Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora among others.
