Planning the ideal logistics network to serve customers has always been a very intense discussion in the field. This is basically due to the fact that there is no single right answer from an operations point of view, but rather an infinity of options that depend on in-depth discussions with the marketing and sales area, something complex and very well addressed by Gabriel Cruz in your post from 15/07/2016. The logistics network that generates the greatest cost savings for the company may not be the one that best satisfies the level of service that the customer requires, putting the optimal point between minimizing costs and maximizing sales under intense debate.
Figure 1 – Distribution center part of the logistics network of a Brazilian retail company
Source: Disclosure
In front of this classic trade-offs it is important to highlight some key points of this debate in the Brazilian context, the first of which is the tax part. It is nothing new that national taxes, mainly ICMS, are a “jabuticaba” not seen anywhere else in the world. The importance of the tax factor is such that logistical insanities start to make sense when considering the capture of previously unincorporated tax benefits. Trucks taking cargo to points where there is neither production nor consumption, generating fuel, maintenance, labor and stay costs are not an uncommon situation in Brazil.
Another important factor in the discussion of networks on the national scene is the opening and demobilization of installations. Capital costs for investing in the country are usually quite high, a situation that is no different for logistical investments. The works required to open a new DC adapted to the company's operations can be very expensive, especially in cases of cargo that requires special care, such as frozen and chemical cargo. The same can occur in decisions to close an installation, with the occurrence of costs of rescinding rental contracts, labor and even possible needs for works to return the site. Thus, the gains calculated by the optimal network decision must take into account these possible high investment costs for this new configuration.
Several other factors are also important for network decisions, such as transfer and distribution costs, shipping and storage capacities, and dispersion of current and future demand. For transport factors, the lack of road safety and costs arising from cargo theft in certain regions appear on the national scene, while for storage factors there are key differences in operating costs and infrastructure restrictions in different regions of the country. country.
And regarding your company, which aspects of the national context most influence the decision on the structure of your logistics network?
