PROFILE OF THE BRAZILIAN LOGISTICS EXECUTIVE

This article aims to present the profile of the Brazilian logistics executive. Most of the analyzes are the result of the survey “Profile of the Logistics Executive”, carried out annually during the International Logistics Forum in Rio de Janeiro.

In this first article, the transformations in the business environment and, consequently, in the career of the logistics executive will be presented, in addition to some descriptive statistics on the profile of the Brazilian logistics professional.

The profile of the Brazilian professional, regardless of their area of ​​expertise, has undergone changes in recent years. The greater competitiveness required by the labor market, combined with globalization, the evolution of technology and the wide availability of information, means that the modern executive has to develop new skills. If in the past an undergraduate degree was practically synonymous with a certain job, today the executive who wants to remain at the forefront of his specialty must make continuous investments in training.

In the specific case of logistics professionals, in addition to changes in the work environment, in recent years the concept of logistics has undergone changes, starting to have a broader scope. This is positive for the executive, as new job opportunities have come into existence. The reflection of this evolution can be perceived through the organizational charts of the companies, since it is currently common for logistics to play a prominent role, similar to the commercial, marketing or finance areas.

Figure 1 – Changes in the business environment

More traditional organizational models, created when there was less competition, longer product cycles and more controllable uncertainty, sought to pursue business excellence through the efficient management of isolated activities, such as sales, finance, purchasing and transportation, among others. In this way, logistical activities were performed most of the time by specialists focused on their area of ​​expertise. These professionals, being evaluated by indicators such as lower transport costs, lower inventories and purchases at the lowest price, were only concerned with their tasks, often forgetting that they were part of a single organization.

The reflection of this in the organization chart is the fragmentation of logistical activities in different areas, generally not very integrated. This fragmentation usually implies the execution of tasks without cross-functional coordination, often resulting in duplication of actions, waste and conflicts of interest between management, in addition to non-optimization of the organization's total costs.

Nowadays, globalized and dynamic markets and increasingly demanding customers have created a need for companies to readjust in order to guarantee the perpetuity of the business. The coordination of material management, production and distribution had to adapt and present more effective solutions to the objectives of excellence that the business demanded.

The increase in complexity in logistics management and the identification of opportunities for improving efficiency led to the emergence of the concept of integrated logistics, associated with a vision of process. The reflection of this change in companies can be seen in the organization chart, as logistics gained independence status and became a core competency. Logistics professionals then had the possibility of also occupying senior management and board positions, and the organization charts of the companies began to highlight the area.

Research carried out at the University of Ohio (USA), at regular intervals over the last two decades, has evaluated professional career patterns among North American logistics executives. The general results obtained during the study period identify and confirm several trends, such as:

1- Upward repositioning of the main logistics executive, with a greater number of directors and vice presidents;

2- Expanded responsibility to include more functions;

3- Change of focus towards the outside, with a much greater interaction with marketing, production, finance and data processing;

4- Shift in emphasis from activity-oriented issues to broader issues related to technology and economics;

5- Growing recognition of the more “scientific” approach to logistics.

Therefore, just like the concept of logistics itself, companies and logistics professionals have evolved over the years. And, to keep up with this evolution, professionals must be able to develop skills that allow them to work in more sophisticated activities. If before a logistics professional had the main responsibility of contracting transport, today this same professional must be able to work with different management technologies, be skilled in customer relations, know how to manage and evaluate the various aspects of service quality, among others. Other competences. Higher-level executives must also develop expertise to make strategic decisions, such as the redesign of logistics networks and the adoption of a global supply chain.

In this way, those professionals who wish to be at the forefront in their areas are increasingly expanding their training through courses such as postgraduate, MBA or master's degrees, as well as shorter courses on specific topics in each area of ​​logistics activity. It should be noted that many executives in the area could not choose to graduate in logistics because this course simply did not exist at the time of their choices. Thus, they either learned “on the job” or sought improvement or specialization courses as a way to remain qualified.

Currently, there are still few offers of undergraduate courses in logistics. In a survey carried out through the MEC (Ministry of Education) website, it appears that approximately 85% of the courses offered by universities in the area of ​​logistics are for training technologists, not bachelors. In other words, they are courses that take an average of two years to complete. In regular courses of four or five years, the most common is to have qualification in logistics. As is the case, for example, with the Business Administration course at the Federal University of Rio de Janeiro –UFRJ.

This low supply of undergraduate courses ends up encouraging professionals in the field of logistics to take courses that complement their training.

Search results

The professionals who work with logistics today have a very diversified background. A survey carried out by the University of Ohio and prepared with the help of the CSCMP (Council of Supply Chain Management Professionals) reveals that the academic training of logistics professionals in the United States has some similarities and some differences when compared with research carried out in Brazil.

The main similarity is related to the degree of professionals in logistics. In both surveys, it appears that Business Administration and Engineering courses are predominant among professionals. However, while in Brazil the Engineering course predominates over the Administration course, in the USA this relationship is the opposite. The Business Administration course is the most common among North American logistics professionals. The graph in Figure 2 shows this relationship.

Source: USA: Council of Logistics Management & Ohio State University Brazil: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 2 – Training of logistics professionals

Although today, in Brazil, Engineering is the main graduation course for logistics professionals, Business Administration graduates are increasingly increasing their participation. This becomes evident when we analyze the profile of young professionals who work in logistics, among which 32% are studying Administration and another 32% are studying Engineering.

Still analyzing the profile of the young executive in logistics, it is verified that the female participation in specialization courses in this career is expressive. Most of the students on the CEL/Coppead logistics training course are women. In fact, the female participation among logistics professionals in Brazil represents almost 23%, while in the USA this index is only 11%. North American data indicate that female participation in the logistics area remained constant between 1999 and 2006.

US source: CSCMP Brazil: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 3 - Predominant gender of logistics professionals

In Brazil, only 14% of professionals in logistics have a master's degree, against 51% in the USA. However, 73% of national professionals have some specialization, whether postgraduate, MBA or master's degree.

One of the main differences pointed out between the research carried out by the University of Ohio and the one carried out by CEL/Coppead was the importance given by North Americans to professional certificates. While 31% of Americans have certificates, in Brazil only 8% of logistics executives said they already have at least one professional certificate.

Source: USA: Council of Logistics Management & Ohio State University Brazil: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 4 - Level of education

It is worth mentioning that, when certifying a professional, the evaluating entity is affirming that that executive is competent in the evaluated capacities. Likewise, by denying this certificate to a professional, the entity is ensuring that this executive has not yet reached the minimum level of knowledge required.

Due to this great responsibility of the assessment entities in issuing a certificate, it is very important that it is recognised, renowned and reputable, in addition to having a good reputation and credibility. Given this, it is worth remembering that North American logistics professionals, unlike Brazilians, have a strong culture of organizing themselves around their categories. Like, for example, the Council of Supply Chain Management Professionals – CSCMP, for logistics executives.

The certificate should not be seen by professionals just for the purpose of obtaining a document, but as a form of continuous learning. This is because, from time to time, which varies according to each certificate, it is necessary for the professional to renew it, thus guaranteeing cyclical and permanent learning.

As a result of this continuous learning process, logistics professionals have been investing heavily in their training. In the last three years, only 7% of logistics professionals invested BRL 1.000 in their careers, while 44% said they spent between BRL 1.001 and BRL 10.000, 40% between BRL 10.001 and BRL 30.000, and 9% more of BRL 30.001.

It is worth mentioning that investments of up to R$ 10.000 correspond to extension courses, such as, for example, training or language courses. Among the main topics sought by executives are “Logistics Costs”, “Supply Chains” and “Logistics Services”.

Investments between BRL 10.000 and BRL 30.000 correspond to specialization courses, such as MBAs or postgraduate courses in Brazil. And finally, investments in excess of R$30.000 can be associated with specialization courses abroad or master's degrees.

With regard to training offered by companies, 75% of logistics professionals stated that their companies provide internal courses and 87% confirmed that external courses are also offered. Companies in the mining sector are the ones that most offer internal training to their professionals. On the other hand, public sector companies, such as services, agencies and government institutions, are the ones that provide the most external courses. The person responsible for choosing the courses, in 57% of the cases, is the immediate superior, although around 48% of the professionals stated that they themselves were also responsible for the choice.

When comparing the age range of national executives with their North American counterparts, it is observed that the profile of Brazilian logistics professionals is made up of younger people. The average age of the Brazilian executive is 38 years old; that of North Americans is 47 years. The graph in Figure 5 presents this comparison.

Source: USA: Council of Logistics Management & Ohio State University Brazil: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 5 – Age range of the logistics professional

While in Brazil 55% of professionals are up to 37 years old, in the US this percentage drops to just 10%. One of the facts that can explain this is that in the USA the concepts of logistics and supply chain have been consolidated for a longer time, thus making it the most well-known area of ​​activity for all professionals.

As in Brazil the concept and teaching associated with logistics are quite recent, many Brazilian professionals became aware of the application of logistics more broadly relatively recently. It can be said that in the past there was even a prejudice against people associated with transport and storage. Most of the time, these professionals had little education and the hierarchy of the companies did not place logistics in a prominent role, which made this specialization unattractive to professionals in general.

This becomes clearer when comparing the time spent in logistics by Brazilian executives with that of North Americans. In the positions surveyed, Americans always have more time (in years) working than Brazilians. The graph in Figure 6 shows this relationship.

Source: USA: Council of Logistics Management & Ohio State University Brazil: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 6 – Average time of work of the logistics and supply chain professional

Furthermore, in most cases, there are significant differences in terms of the cost of obtaining credit for each agent in the chain. In general, larger companies get lower interest rates and, therefore, manage to have lower costs in their operations than their smaller trading partners. This, in itself, represents a great opportunity to optimize financial flows in the supply chain.

Part of the cost of BRL 3 for the farmer is related to the interest paid on the loan to buy production inputs, such as feed, water and medicines. This cost is fully passed on to the food industry in the chicken sales price. Considering R$ 0,20 as the cost of interest paid by the farmer for the production of each chicken, it can be concluded that the industry is paying R$ 0,22 in interest per chicken purchased (R$ 0,20 + 10% of the farmer's wages). However, the interest rate paid by the large industry for the acquisition of inputs is half that obtained by the farmer, which could mean savings of approximately R$ 0,11/unit or R$ 11.000 (increase of 10% in the result of the industry ).

Source: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 7 - Responsibilities associated with the role of the logistics professional

With regard to the remuneration of logistics professionals, it appears that around 70% receive up to R$ 150 per year, including benefits. The graph in Figure 8 shows the percentage of logistics executives by annual salary range. Only 3% of professionals earn more than R$ 300 per year, that is, at least a monthly salary of approximately R$ 20, considering 12 monthly salaries, thirteenth salary and two extra bonus salaries.

Source: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 8 - Compensation of the logistics professional

The relationship “hierarchical level versus compensation” is straightforward. That is, professionals with the highest salaries tend to be those with the highest hierarchical levels. The graph in Figure 9 demonstrates the probability of a logistics professional occupying a certain hierarchical level and being in a specific salary range.

Source: CEL/COPPEAD Survey Reviews: ILOS Institute

Figure 9 – Relationship between hierarchical level and salary range

It is observed that, for professionals who receive more than R$ 100/year, between salaries and benefits:

• There is a 9% probability that the executive will hold operational or junior management positions;
• There is a 69% probability that the executive is positioned in the middle or top management; It is
• There is a 22% probability that the executive is a director or president.

It is worth mentioning that, as there are more vacancies for managers than for directors and presidents, the probability of a logistics professional occupying a manager vacancy and simultaneously receiving more than R$ 100 is greater.

When analyzing the satisfaction of logistics professionals with regard to their annual remuneration, it appears that just over half of the executives (53%) are satisfied. Professionals with higher hierarchical level tend to be more satisfied with the remuneration received.

By segmenting the professionals in terms of education, it appears that the higher the education, the greater the probability that the executive in logistics will be satisfied with the remuneration received. Similarly, when segmenting executives in terms of remuneration received, it appears that the higher the annual remuneration, the greater the satisfaction of the professional.

Of the executives in logistics, 19% have already worked abroad. The US is the main destination: 37% of professionals who worked abroad went to that country. However, having international experience is no guarantee of being satisfied with the remuneration received. Professionals with international experience are more dissatisfied with their remuneration, representing an average of 14% of executives dissatisfied with this aspect.

Executives who do not have international experience, whether working or studying, tend to invest more in their training, raising their schooling level as a form of compensation.

In addition to continuous training, another factor of increasing recognition of modern logistics professionals is their ability to use analytical tools and software to help solve logistical problems, since solutions that require optimization or simulation programs are increasingly widespread among companies. . For example, to identify the best sizing of equipment in a warehouse, or where and how many distribution centers should be in a logistics chain, it is necessary not only to have knowledge in operational research and simulation, but also to know how to operate these specific software.

CONCLUSION

The logistics area has added new activities and responsibilities in recent years, and as a result, it has gained greater prominence in organizations. The reflection of this can be seen in the organization charts of the companies, where the position of Director of Logistics/Supply Chain is already quite common.

It can be said that Brazilian logistics professionals are mostly:

• Men,
• Graduated in Engineering or Administration,
• With an average age of 38 years and
• With ten years of experience in logistics.

In more strategic positions, the logistics professional is more likely to earn more. And, the higher the annual remuneration, the greater the satisfaction of the professional.

In general, those professionals who do not have international experience usually invest more in their training as a form of compensation.

With more strategic and planning activities, the logistics professional who wants to have high employability needs to develop new skills and, therefore, always invest in training.