How can Brazilian companies become more agile facing logistics challenges?

Have you ever faced difficulties in logistics management? Lack of technical training of professionals, limited resources, inadequate transportation, are some of the challenges that logistics professionals in Brazil face daily. Production areas are spread throughout the country, yet there is an infrastructure inefficiency and a dependence on resources that are beyond companies’ reach, such as: passable roads, waterways, railways, air transport.

To compensate the lack of investment in the logistics sector, some companies invest in the structure itself, as is the case of Amaggi Navegação. The company, which began a phase of grain outflow expansion in the North of the country, in 2015, set up a Private Use Terminal (TUP) and a cargo transfer station. According to the director of Amaggi, Jorge Zanatta, the result was lower cost, for example, in the floating terminal, which value is lower than conventional.

Logistics involves a wide range of activities, from product supply to final distribution to the Market. Its flow, which includes transport, production, and supply chain elements control, has demanded processes integration and automation, as well as a software in logistics, which improves management, real time visualization of operations and enables enhanced functionality, which only best-of-breed solutions can meet.

However, even with new management possibilities, the industry has faced major challenges from a precarious infrastructure, which makes more precise work and better management impossible. The lack of preparation of professionals also affects the performance of logistics in Brazil, since there is a need of broad management knowledge for the logistics management chain.

Transport resources are also limited. Considering the size of the country, the mode of road transport also faces difficulties. According to the National Transport Confederation (CNT), in 2009, Brazil transported its cargoes predominantly on the roads:

  • 61,1% of all cargo transported in Brazil was done by road;
  • 21% by railroads;
  • 14% by waterways, river and maritime port terminals;
  • Only 0,4% by air.


Considering all this, what can a company do to become more agile when investing in infrastructure?

1. Use private railways
Rail transport is faster than sea and cheaper than air and road operations. The railroad has proved to be a potential alternative to improve the cargo system in Brazil and as any other system depends on good investments for better operation.
The rail mode is intended to transport a greater volume of cargo over long distances. With the help of a software in logistics, it is possible to make an important contribution to the economy, making rail mode an excellent means to take freight transport directly to final destination, quickly and safe.

 

2. Invest in ports
Ports have become a new frontier in the logistics world. Investment in a port exclusively for cargo can make producers pay a significantly lower freight cost. Terminals are true logistics platforms, equipped with facilities for handling of containers and cargo in general.

 

3. Invest in systematized warehouses
Systematization in warehouses, using a software in logistics, applied to the operation of the distribution center (CD), can provide a wide range of benefits when it comes to organizing the structure of the warehouse. It is no use investing outside if the company is not organized inside. That includes greater space saving, better productivity, more efficient flow for movements, safer operations, inventory reductions, better ROI (Return over Investment) and lower life cycle cost.

Warehouse activities such as palletizing, product control, and storage, need management to allow more space and better organization for cargo transitions. A systematized warehouse started having a direct influence on the efficiency of the supply chain.

As the economy recovers, only the companies that can deliver products quickly and efficiently will have a real competitive advantage. One of the most effective ways to achieve this goal is through systems.

RFID technology, for example, helps real time tracking of all products arriving and leaving the warehouse, resulting in a tighter inventory control. In addition, software in logistics minimizes storage space and at the same time maximizes the handling of the product mix.

Another concern of logistics companies is the tracking of materials that are in movement. A warehouse that has a system can have greater visibility of this movement and handling of the correct product.

All good infrastructure in the logistics chain depends on systematized processes of cargo management and processing, allowing more assertiveness for the operators and greater productivity in the activities inside and outside the warehouse. Today consumers demand the maximum use of technology to guarantee delivery time and product shelf life, besides its conditions in accordance with manufacturing.

The application of a software in logistics ensures sustainability and boosts the economy, which now has efficient resources to avoid unnecessary expenses and maintain agile and qualitative logistics.

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